Banks generate lion’s share of ASX gains

James Gerrish

Market Matters

A more bullish session than we thought today thanks largely to continued buying amongst the banking stocks. This week saw both CBA and NAB report stronger margins which went against what the consensus was thinking. Given the continued decline in interest rates the market was concerned that banks would struggle, however the bearish assumptions have proven to be just that.

Overall today, banks were the driver of the market, the index up +27pts with the big four accounting for +26.25pts of that. CBA cracked $90, up +2.55% on the session while NAB was the standout adding 3.25% to close at $27.35. Westpac chimes in adding +1.14% while ANZ was the weakest link

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Overall, the ASX 200 added +27pts / +0.38% today to close at 7130. Dow Futures are trading up +57pts/+0.20%

ASX 200 Chart

ASX 200 Chart


Sectors this week – Banks in the winners circle…been a while!

Stocks this week – Bingo & Evolution are 2 stocks in the portfolio, although so is BPT & SSM which were both weak.

Broker moves;

· SkyCity Entertainment Raised to Neutral at Macquarie

· Navigator Global Cut to Neutral at Macquarie; PT A$3.36

· Skellerup Raised to Neutral at Jarden Securities; PT NZ$2.03

· IPH Raised to Buy at Canaccord; PT A$10.95

· IGO Raised to Hold at Morningstar

· IGO Raised to Hold at Bell Potter; PT A$5.89

· Cut to Hold at Ord Minnett; PT A$18.98

· IDP Education Raised to Accumulate at Ord Minnett; PT A$22.34

· Breville Raised to Neutral at Goldman; PT A$23.85

· Breville Raised to Hold at Bell Potter; PT A$25.15

· NAB Raised to Equal-Weight at Morgan Stanley; PT A$25.50

· NAB Raised to Buy at Bell Potter; PT A$28.80

· NAB Raised to Hold at Jefferies; PT A$26.70

· TPG Telecom Raised to Hold at Jefferies; PT A$7.81

· Goodman Group Raised to Neutral at JPMorgan; PT A$16.10

· AGL Energy Raised to Hold at Morgans Financial Limited

· AGL Energy Raised to Neutral at Citi; PT A$20.12

· Synlait Milk Cut to Neutral at Goldman; PT NZ$7.47

· Synlait Milk Cut to Hold at Bell Potter; PT NZ$7.40

· Pro Medicus Cut to Hold at Bell Potter; PT A$30

· South32 Raised to Overweight at JPMorgan; PT A$3

· Newcrest Cut to Underweight at JPMorgan; PT A$26

· AMP Raised to Buy at Bell Potter; PT A$2.25

· AMP Raised to Neutral at UBS; PT A$1.80

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Portfolio Manager
Market Matters

James is Portfolio Manager & Primary Author at Market Matters, a daily investment report with over 2500 subscribers that offers real market insight. He is also Senior Portfolio Manager within Shaw and Partners heading up a team that manages...

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