Daily Report

Very little to say about the local session today – unsurprising given the market closed less than a point higher than Friday’s close and traded in a tight 28pt range for the day. Banks marginal gains offset miners marginally loses. Healthcare was dragged by the heavyweight CSL which eased off all-time highs set on Friday. Gold names were hit hard across the board following a soft gold price as well as a stronger Aussie dollar – the Aussie battler is up 2.5% in the past few sessions to test the 69USc area again.

Household lending data out today was better than expected showing a 5% jump in home loans approved in July. The delayed data shows the impact of easing lending standards as well as cuts to interest rates, however business growth was negative in the period.

Overall, the ASX 200 put on +1pt today or 0.01% to 6548, Dow Futures are now trading up 44pts /0.16%.

ASX 200 Chart

ASX 200 Chart

CATCHING OUR EYE;

Regis Resources (RRL) -6.92%; an investor day from the gold miner today was not enough for the stock to offset the gold price tumble. The precious metal fell more than 3% and support in the AUD combined to send the gold stocks lower today. Regis was the worst hit hover with the investor day failing to give the market any catalyst to help the stock higher. The company talked up its reserves & its low costs base but less than a month after the full year results, the bulk of today’s presentations was a repeat. Regis guided to 340-370koz of gold at between $1,125-$1,195/oz all in sustaining costs – costs being almost 13% higher than last year to the midpoint. We are not holding any gold exposure currently and have other names we prefer into a pull back.

Regis Resources (RRL) Chart

Broker moves; TPG (TPM) was one of the better performers on the market today on a UBS upgrade. The broker is calling for NBN headwinds to peak in FY20 while the share price had pulled back on fears the proposed merger with Vodafone would impact performance. TPG and Vodafone will take the stand in the Federal Court this week to argue the benefits of the merger on competition – somewhat of an oxymoron, however the argument lies with the strength of another nationwide mobile network. The broker noted that it appears the market was pricing in just a 25% probability of the deal going forward and called this fair but noted the upside to TPM if the deal proceeds.

TPG Telecom (TPM) chart

Elsewhere;

TPG Telecom Upgraded to Neutral at UBS; PT A$6.60

Senex Downgraded to Neutral at Citi; PT A$0.46

Beach Energy Downgraded to Neutral at Citi; PT A$2.48

Sims Metal Downgraded to Sell at Morningstar

OUR CALLS

No changes to the portfolios today.

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