IOOF wins big over the regulator, Webjet down after Thomas Cook collapses (WEB, IFL)
A more bullish open for stocks than futures were suggesting today with the index adding a quick +35pts early on, before sellers saw the index track down from the early highs into the close. Healthcare providing most support for the bulls while we also saw a reasonable bounce from the energy stocks after they came off the boil towards the end of last week.
Overall today, the ASX 200 closed up +19pts or +0.28% to 6750. Dow Futures are trading up +109 points or +0.41%.
ASX 200 Chart
ASX 200 Chart
WHAT MATTERED TODAY
IOOF (IFL) +12.01%: Up strongly today after they had a good win in the Federal Court again APRA, after alleging IFL contravened the Superannuation Industry Act, however the court found APRA's approach unpersuasive and ordered them to pay costs. As we often say, the vortex of negativity is highest at the lows, a view very relevant for IFL - a stock we are bullish on. I spoke about IFL in a video recently with Harry - CLICK HERE TO VIEW
Webjet (WEB) -3.48%: Hit today following news that Thomas Cook (in the UK) had collapsed after a 178 year history which is quite sad really after negotiiations with creditors failed. The collapse is likely to cost WEB around $7m which relates to its WebBeds brand while WEB had previously said that they expected to earn around $150-$200m worth of TTV which obviously is not going to happen now. We've been negative WEB and remain so - trends here are weak.
Webjet (WEB) Chart
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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...