Mandate Memo - 30th March 2026
In a sea of red, rebalanced a few stock weights
Fund Status:
Bal Start: $981,586
Bought: SHA, SRG, GLF, COL
Sold: None
Bal End: $980,634
Cash: $504,714
Market Commentary
Friday’s session in the US ended down after a relatively soft session. However, the news over the weekend has driven markets. Iran and US tensions have escalated with Iran warning the US against a ground invasion while Houthi rebels have joined the conflict, and US marines have arrived in the Middle East. As a result, the price of oil has spiked higher. Even the Victorian government has now stepped in to temporarily offer free public transport to combat the surge in fuel prices. While the Strait is mostly closed, some tankers are being allowed through for a toll fee. This is unlikely to curtail the price hikes. In addition, aluminium prices have risen after Emirates Global Aluminium stated its facilities incurred damage after an Iranian missile strike. Prices in fertiliser, helium, and plastics have all been affected.
S&P/ASX 200 closed down. The sell-off was fuelled by a combination of escalating Middle East conflict, surging oil prices, and persistent inflation fears that signalled potential RBA rate hikes. Energy and Materials were rare bright spots as investors find “safe havens” like Gold miners and commodity players. South32 and Alcoa Corporation saw significant gains of 6% and 9% amid supply shortage fears. Technology was the worst performer, led by Zip as the market rotated away from high-growth assets.
Portfolio Commentary
It was a red day all around. WDS, SHA and COL were the only stocks that rallied. Energy and Staples are the only sectors defending the portfolio from drawdown. Worst performers for the day were ZIP and 360 with MP1 as the third worst. Technology is still drawing down from the disruption of AI. For the aforementioned stocks, the disruption is unfounded and hopefully a short term drag on the portfolio.
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.