Resources Relief Rally Raises ASX Market
Paper Mandate Market & Portfolio Commentary | 21 May 2026
Fund Status:
Bal Start: $1,073,106
Bought None
Sold: None
Bal End: $1,088,199
Cash: $149,196
Market Commentary
Markets rallied overnight as the prospect of a resolution for the Middle East conflict was teased. The US government suggested that the negotiations were in the final stages. This sent oil prices lower, and equities higher. Gold was up, bringing the price back above $4,500/toz. Copper also rallied overnight, usually a bullish signal. Nvidia once again beat earnings expectations generating $81.6b in revenue for the quarter. Stock still fell after market though (-1.5%). It led the Tech sector, which rallied +1.87%. Consumer Discretionary also gained 2.50%. The largest detractor was Energy -2.59%. ASX Futures are up pre-market, so hopefully the Aussie market will follow.
We had a lot of AU economic data releases today. Unemployment was higher than expected at 4.5%, while Consumer Inflation Expectations have dropped slightly from 5.9% to 5.6%. Higher than expected unemployment figures may lead to the RBA cutting rates, or at least not hiking them. At close the ASX200 had a relief rally, gaining +1.47%. Materials (+2.56%) led the relief rally with BHP (+3.1%) and Rio (+3.2%) having good days despite weak iron ore futures. Energy was the laggard (-0.95%), which was driven by a -5.6% drop in oil prices.
Portfolio Commentary
PC2 had fantastic drilling results. Grades range between 0.73g/t AU to 4.72g/t AU. The average is around 2.16g/t AU. They are aiming to complete a collaboration with C79 on a test work program for one particular drill hole, one with 6.7m of 2.79g/t AU from 130m. This means a 2.79 grams per tonne grade from 130m down for a length of 6.7m. Unfortunately the selling pressure for PC2 was greater than the buying support. C79 on the other hand rallied on the back of the gold price rising.
JDO was the top performer of the portfolio today. There was no news specifically on the stock. Could be related to the economic data releases.
Investment Activity
Did not trade.
Disclaimer: This is a paper portfolio. Content is for educational purposes only and does not constitute financial advice. Always do your own research.