Ceasefire Reversal Sinks Hopes & Tech
Paper Mandate Market & Portfolio Commentary | 9 April 2026
Fund Status:
Bal Start: $1,015,078
Bought: NWL
Sold: None
Bal End: $999,352
Cash: $404,659
Market Commentary
The US market experienced a massive relief rally as the S&P 500 recorded its best session since Liberation Day in April 2025. The rally was driven by news of a two-week ceasefire agreement between the US and Iran and the reopening of the Strait of Hormuz. However, before the market opened today, the ceasefire was broken (less than 24 hours). ASX futures were signalling the market would fall as it ingested the new update on the conflict. Technology will most likely sell off while Energy rallies.
The ASX ended the session slightly up (+0.24%) with Technology (as expected) the worst performer, reversing nearly all of their previous session’s gains. To add insult to injury, Morgan Stanley released a note slashing their price targets for the Tech sector by 20%. They lowered their terminal values. But they believe the sell-off is indiscriminate (I also hold this view) and that there are solid tech businesses with headroom in the share price.
Below are the technology companies Morgan Stanley mentioned. Two of which (in red) are in the portfolio. Just between us, there is a limit order on WiseTech waiting to be executed. It has not dropped to the target entry price yet, hence it is not in the portfolio.
Portfolio Commentary
The Portfolio is predominantly Technology at the moment. As a result the drawdown in tech today will be keenly felt. Pleasingly though the drawdown today did not appear to be as deep as the rally from yesterday. This should help the portfolio value in the longer term. The positive performers in the portfolio today were WDS, and OBM again, with a surprise +1.6% gain in Shape (SHA). The portfolio didn’t trade much today. An initiation on Netwealth (NWL) was the only execution because the Financial allocation to the portfolio is too low compared to the benchmark.
Investment Rationale
Disclaimer: This is a simulated portfolio. Content is for educational purposes only and does not constitute financial advice. Always do your own research.