Blackwattle Portfolio Manager, Joseph Koh, speaks with the Australian Financial Review about Reece (ASX: REH) performance during a challenging year for the company.
“Blackwattle Investments’ portfolio manager Joseph Koh, an investor in Reece, said the poor performance was not a surprise based on recent results from building materials group James Hardie, which also reported weakness in the US housing market.
Koh said Reece’s problems were being compounded by management’s decision to continue to invest through the cycle, sacrificing margins and cash flow.”
Jarred Rubin, CEO of Blackwattle Investment Partners, joined Andrew Geoghegan on ausbiz to unpack the recent surge in Australian consumer sentiment, driven by RBA rate cuts and growing optimism among households. Westpac’s consumer sentiment index has climbed approaching levels that signal renewed economic confidence.
Blackwattle highlights Judo Bank (ASX:JDO) as a standout, thanks to its SME lending focus and strengthening financial metrics, including rising margins and diversified funding initiatives.
Hear from our Mid Cap Quality Fund Deputy Portfolio Manager, Michael Teran, as he discusses with Stephanie Gardner from Livewire his valuation and view of The Lottery Corp (ASX:TLC).
To view the Livewire article please click the link below:
“In the midst of chaos, there is also opportunity.”- Sun Tzu
Market Insights
Australian Market
The S&P/ASX 200 Total Return Index rose 2.4% in July, closing above 9,000 points for the first time. This capped a strong run for Australian equities, with small and mid-caps also performing well. The ASX Small Ordinaries Accumulation Index gained 2.8%, marking its fourth consecutive monthly advance and +11.7% since March.
Sector performance was led by Healthcare (+9.5%), Energy (+6.0%), and Materials (+4.1%), all areas that had lagged over the past 12 months. Healthcare rallied on strong updates from CSL and ResMed, Energy was boosted by higher oil and LNG prices, and Materials benefitted from a rebound in gold and lithium miners. Financials (-1.0%) were the notable laggard, driven by a pullback in Commonwealth Bank after a long rally.
Macro conditions were supportive:
Headline CPI fell to 2.2%, firmly inside the RBA’s target range.
The labour market softened slightly, with unemployment edging higher, seen as bolstering the case for further RBA easing.
The AUD remained near 20-year lows, enhancing export competitiveness and attracting offshore inflows.
China’s announcement of large-scale infrastructure spending, coupled with early signs of supply-side reform to tackle industrial overcapacity, helped lift sentiment across key commodities like iron ore, coal, and base metals.
Global Markets
The MSCI AC World Index (AUD) rose 3.2% in July, as growth-oriented sectors: Technology (+6.5%), Communication Services (+4.1%), and Energy (+4.3%) led the way, while defensives like Consumer Staples (-0.4%) and Healthcare (-0.3%) lagged.
United States:
The S&P 500 and Nasdaq posted new record highs. Mega-cap tech earnings exceeded expectations, particularly in AI infrastructure, semiconductors, and cloud services.
Retail sales were weaker, while inflation was mixed: headline CPI held steady, core eased marginally.
The Fed held rates but noted that a cut as early as September was possible if labour market data continued to soften.
Europe:
The ECB cut rates for a second consecutive month, signalling a measured easing path. Earnings beats in industrials, financials, and luxury supported sentiment, but growth data remained subdued.
Asia:
Commodity markets were mixed: gold prices consolidated near record highs on central bank demand and geopolitical hedging, while oil prices eased late in the month as OPEC+ output discipline came into question.
Japan extended gains on yen weakness and corporate governance reforms.
China posted strong tech sector earnings and reiterated stimulus commitments, but property sector data disappointed, capping broader equity gains.
Global Markets
The MSCI AC World Index (AUD) rose 3.2% in July, as growth-oriented sectors: Technology (+6.5%), Communication Services (+4.1%), and Energy (+4.3%) led the way, while defensives like Consumer Staples (-0.4%) and Healthcare (-0.3%) lagged.
United States:
The S&P 500 and Nasdaq posted new record highs. Mega-cap tech earnings exceeded expectations, particularly in AI infrastructure, semiconductors, and cloud services.
Retail sales were weaker, while inflation was mixed: headline CPI held steady, core eased marginally.
The Fed held rates but noted that a cut as early as September was possible if labour market data continued to soften.
Europe:
The ECB cut rates for a second consecutive month, signalling a measured easing path. Earnings beats in industrials, financials, and luxury supported sentiment, but growth data remained subdued.
Asia:
Commodity markets were mixed: gold prices consolidated near record highs on central bank demand and geopolitical hedging, while oil prices eased late in the month as OPEC+ output discipline came into question.
Japan extended gains on yen weakness and corporate governance reforms.
China posted strong tech sector earnings and reiterated stimulus commitments, but property sector data disappointed, capping broader equity gains.
…To read the full version, or listen to a summary, please click the links below:
Blackwattle Portfolio Manager Joseph Koh joined Sean Roger of Perpetual Asset Management on Livewire Markets’ Buy Hold Sell, borrowing the AFL Grand Final idea of balancing attack and defence to look at the ASX.
Blackwattle Portfolio Manager Elan Miller discussed reporting season, where improving margins were offset by cautious outlooks as companies cut costs amid economic uncertainty.
Blackwattle’s August 2026 Market Insights: ASX 200 +1.5% amid sharp sector dispersion as reporting season drives volatility. Three our Funds outperformed benchmark, net of fees.
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