Capital Rotates Out of BHP Into Banks while SaaS and Retail Power Portfolio
Paper Mandate Market & Portfolio Commentary | 16 July 2026
Fund Status:
Bal Start: $1,150,092
Bought WDS
Sold: None
Bal End: $1,154,262
Cash: $119,480
This note is a day behind. So we will be posting the 16th July and the 17th July updates today. Lucky you!
Overnight Markets
US indices pressed higher overnight for a second straight session, finding support in another set of cooling inflation data. The S&P 500 gained +0.38% while the Nasdaq added +0.62% following June PPI numbers that landed softer than the consensus. Core PPI remained notably flat to up just 0.2% month-on-month, solidifying the disinflationary narrative from Wednesday’s cool CPI and pulling Treasury yields lower. Sentiment was further bolstered by the Bank of Canada maintaining rates at 2.25% for its sixth meeting, coupled with a robust start to bank reporting from Goldman Sachs. Despite the green close, some after-hours soft spots in technology names capped broader momentum, leaving the market on guard leading into the local open
Australian Market
The ASX 200 was essentially flat today (+0.00%). Materials (-1.60%) acted as the session’s anchor, weighed down by BHP Group (-2.3%) after its highly anticipated operational update missed the mark. An engineering failure at South Australia’s Olympic Dam mine and deteriorating ore grades in Chile forced BHP to issue FY27 copper guidance that landed 2% below the consensus. Fortunately, the index was saved by a substantial rotation into Financials (+0.90%). Commonwealth Bank (+1.8%) and NAB (+1.3%) absorbed the lion’s share of the mining capital, while Macquarie Group (+2.0%) clinched yet another record closing high of $258.16, riding the wave of volatile global commodity markets. Elsewhere, AMP (+9.8%) celebrated its best trading day since 2024 following a stellar H1 profit guidance beat.
Portfolio Commentary
The portfolio delivered a good result, gaining +0.38% to a flat benchmark. Strong performance across our software, wealth platforms, and retail growth exposures comfortably offset a minor sector-wide pullback in energy and fintech. Leading the charge was 360, which rallied +5.03% as SaaS rebounded. Lovisa jumped +4.93% on a positive retail move, and SKS rose +4.34%. Other green shoots were HMC (+2.80%), Bravura (+2.35%), and Netwealth (+1.42%).
Conversely, Zip dropped -1.87%, Megaport also slipped -2.35%, while Woodside fell -1.47% as investors adjusted following the moves in global crude pricing. We had a history limit order for WDS which was executed at $29.33, adding 1% to the position.
Investment Activity
Disclaimer: This is a paper portfolio. Content is for educational purposes only and does not constitute financial advice. Always do your own research.