ASX drifts lower into EOFY

James Gerrish

Market Matters

Firstly, thank you to all who generously contributed today to our fundraising efforts to assist the Apex Foundation. After sending an email to the MM community this morning we’ve now raised $4,455 for a great cause – phenomenal effort in a day and I’m now confident we can get to at least $10,000 by August. With the help of the Shaw & Partners Foundation this could see us contributing $15,000 to a wonderful cause. Click Here to donate

The last trading day of the financial year and the market came off the boil into the close – dropping -47 points and finishing on the session lows in the process. Asian markets were weaker today, but only marginally.

For the financial year, the ASX 200 has put on +6.85%. However, the volatility of the market over the past 12 months has been significant, with a ~21% range playing out between 5410 at the lows, and 6691 at the highs. We’ll look at sector and stock performances at the extremes below.

Overall today, the ASX 200 closed down -47 points or -0.71% at 6618. Dow Futures are trading up +32 points or 0.11%.

ASX 200 Chart

ASX 200 Chart


Pact Group (PGH) +9.84%: We added to PGH yesterday and it rallied another ~9% today as more brokers upgraded the stock following yesterday’s announcement around earnings and debt. The market is negative on this stock – today's buying was a clear sign of that and we now expect higher prices to persist from here. We are bullish PGH.

Pact Group (PGH) Chart

Afterpay (APT) -9.92%: had a volatile session, hitting then pulling back from all-time highs to close down ~10% on the session following news that Visa will launch a buy now, pay later program similar to APT. Here’s what they said: "Visa is making it easier to provide shoppers the ability to choose how they pay before, during or after purchase with the introduction of a suite of Visa’s installment solutions APIs. Through a pilot program, participating issuers and merchants will be able to offer their customers an installment payment experience at checkout using a Visa card they already have in their wallet. With Visa’s installment solutions, Visa cardholders will have the option to divide their total purchase amount into smaller, equal payments over a defined time period on qualifying purchases, at the store and online or while traveling abroad." Sounds very much like APT to us!

Afterpay Touch (APT) Chart

Sectors this Financial Year:

Stocks this Financial Year:

Broker Moves;

· GWA Group Downgraded to Hold at CCZ Statton; Price Target A$3.50

· Mirvac Group Resumed at Macquarie With Outperform; PT A$3.46

· Perseus Downgraded to Neutral at Credit Suisse; PT A$0.59

· Independence Group Cut to Underperform at Credit Suisse; PT A$4

· GDI Property Upgraded to Buy at Moelis & Company; PT A$1.50

· Galaxy Resources Upgraded to Neutral at Macquarie; PT A$1.30

· Pact Group Upgraded to Neutral at Macquarie; PT A$2.81

· Pact Group Upgraded to Buy at Goldman; Price Target A$3.02

· GTN Ltd Downgraded to Hold at Canaccord; PT A$0.95

· OFX Rated New Market Perform at KBW; PT A$1.70

· Vocus Upgraded to Buy at UBS; PT Set to A$3.85

· Pacific Energy Cut to Accumulate at Hartleys Ltd; PT A$0.76

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James Gerrish
Portfolio Manager
Market Matters

James is the Lead Portfolio Manager & primary author at Market Matters, a digital advice & investment platform with over 2500 members that offers real market intel & portfolios open for investment. He is also a Senior Portfolio Manager at Shaw and...

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