Markets grind higher in quiet session

James Gerrish

Market Matters

US markets were higher overnight and that filtered into a positive backdrop for our market today, however volume was very light and we’d expect the same to play out tomorrow given the 4th July Holiday in the States = no US trade this evening. US Futures were trading during our time zone but not much happened there, while Asian markets were fairly muted. A good time to tidy up end of FY admin!

Banks bounced back from recent weakness, however it was the platform providers that did best – HUB24 (HUB) and the like which had been smashed over the past few days on negative broker commentary. HUB +8.74%, Netwealth (NWL) +7.61% and Praemium (PPS) +2.35% the standouts in the sector. On the other hand there was some weakness in the materials space while energy stocks failed to hold onto the overnight rally in crude – most finishing in the red after a reasonable open.

Retail sales data was out at 11.30am this morning, up +0.1% for the month which was a tad below expectations for +0.2%.

Overall, the ASX 200 added +32 points today or +0.49% to 6718. Dow Futures are trading down -15 points / -0.06%.

ASX 200 Chart

ASX 200 Chart


A few stocks: Some action in a few stocks we have in the Income Portfolio today with Whitehaven Coal (WHC) up +2.2% after a fairly tough run of late - there’s been some reasonable lines of stock being shopped around and for now the stock has managed to hold above $3.60 support – it’s looking reasonable at current levels.

Healius (HLS) +1.99% is a company we’ve toyed with selling – on one hand its major Chinese shareholder is sniffing around and could take the medical centre operator out. On the other hand it seems from an operational perspective the business is struggling - a call that needs to be made before results mid-August. Building materials company CSR +2.2% went on a run today and looks good technically – we hold it in the Income Portfolio and are sitting on a +20% profit but are looking for another 10% upside from here.

Whithaven Coal (WHC)

Broker moves;

  • Iluka Downgraded to Neutral at JPMorgan; PT A$10.75
  • Independence Group Downgraded to Neutral at JPMorgan; PT A$5.30
  • Insurance Australia Cut to Equal-weight at Morgan Stanley
  • Netwealth Upgraded to Buy at Bell Potter; PT A$10.28
  • Pilbara Minerals Upgraded to Neutral at JPMorgan; PT A$0.60
  • Suncorp Downgraded to Underweight at Morgan Stanley; PT A$11.90

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James Gerrish
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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