ASX 200 Gives Up Early Gains on Wednesday 

• ASX 200 gives up early gains on Wednesday  

• US Election results caused chaos throughout the session  

• Despite the “give back”, there were multiple bright spots in the ASX 200 during trading.  

In the early hours on Wednesday, the ASX 200 initially spiked. However, we have seen the market turn around completely. All things being equal, the fact that we ended up forming a bit of a shooting star pattern, suggests that we are going to continue to see a lot of noise.  

It’s worth noting that the Australian index had the misfortune of being traded while Presidential election results were coming in from the United States, so it was always going to be volatile. Keep in mind that the ASX 200 is highly sensitive to risk appetite, and of course we have a lot of commodity companies within the ASX 200, but we also have a lot of financial companies to pay attention to, as Australia finances quite a bit of growth in the Asian region.  

Wisetech Global (WTC)  

Wisetech Global rallied 1.02% for the trading session or AU$1.24 for the day. At this point, the market is above the 50 Day EMA and has recently seen a significant spike in volume. The information technology behemoth has attracted a lot of inflows over the last couple of weeks, and the recent action suggests that traders remain very interested in this market. That being said, over the last couple of weeks the market has gained about AU$20, meaning that it might be a little overextended. One would have to assume that the bullish traders out there are still very positive on this stock though, perhaps giving it a little bit of a “cushion.”  

Xero Ltd (XRO)  

Xero Limited had a strong day, breaking to a fresh, new high. The market gaining 2.25%, or AU$3.38 for the day is a sign of real strength heading into an earnings call on Thursday, November 14. The earnings estimate is AU$0.654/share, with the revenue estimate of AU$920.452 million. With that being said, the market has certainly picked up quite a bit of momentum, and that has recently seen volume pick up. This all leads to potentially higher levels for XRO.  

Suncorp Group Ltd (SUN)  

Suncorp Group gained a massive 3.27% for the trading session as the financial company now finds itself testing the AU$18.50 level. The market gapped higher during the trading session, but this may be partly due to some of the risk being thrown around after the US election. That being said, the stock has cleared the 50 Day EMA and is currently looking very much like a company that is trying to work off some of the excess froth from the move higher a couple of months ago. Whether or not this stock can continue to grind higher remains to be seen, but quite frankly it does look like its doing everything it can to smash through the ceiling.  

Disclaimer: The material provided here has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Whilst it is not subject to any prohibition on dealing ahead of the dissemination of investment research we will not seek to take any advantage before providing it to our client. No representation or warranty is given as to the accuracy or completeness of this information and therefore it shouldn’t be relied upon as such. Any research provided does not have regard to specific financial situations, needs or investment objectives. Vantage accepts no responsibility for any use that may be made of these comments and for any consequences that result. Consequently, any person acting on it does so entirely at their own risk. We advise any readers of this material to seek professional advice where necessary. Without the approval of Vantage, reproduction or redistribution of this information isn’t permitted.