Company Interview / Why Andrew likes defensive and select tech stocks

Key points:

Preference for defensive supermarkets and selective tech such as Mega Port and TechnologyOne Strong long-term AI theme emphasised despite recent global tech volatility Defensive positioning via supermarkets and selective technology exposure Emerging value and selective opportunities in major healthcare names including ResMed

Andrew Dale from ECP Asset Management states that markets remain exhausting and uncertain as investors head towards 30 June. Dale notes ongoing inflationary pressures in wages, energy and freight, and expects more cautious outlooks from consumer-facing companies in the back half of the year. He points to shifting spending patterns rather than outright consumer weakness, yet remains wary of further downgrades in retail and furniture names such as Nick Scali (ASX:NCK) and Temple & Webster (ASX:TPW), while seeing some resilience in jewellery retailer Lovisa (ASX:LOV). Supermarkets Woolworths (ASX:WOW) and Coles (ASX:COL) are viewed as defensive refuges, albeit facing their own rising cost base.

On global tech, Dale highlights that many stocks remain up strongly over 12 months despite the recent sell-off. He sees ongoing enthusiasm for AI and large-cap names such as Nvidia (NASDAQ:NVDA) and Tesla (NASDAQ:TSLA), suggesting investors feel compelled to maintain exposure despite valuation and earnings uncertainty.

Domestically, Dale favours Mega Port (ASX:MP1) and TechnologyOne (ASX:TNE) as key AI beneficiaries with attractive growth runways, while adopting a more cautious stance on Xero (ASX:XRO) and WiseTech Global (ASX:WTC). In healthcare, Dale sees value emerging in ResMed (ASX:RMD), Cochlear (ASX:COH) and CSL (ASX:CSL), with ResMed his preferred pick.