Resources - is the run over?

James Gerrish

Market Matters

A more subdued session today at the index level with the market fairly flat, although under the hood, there were a number of big movers. Macquarie Group (MQG) dropped -5.43% to close at $128.81 with the outlook statement the problem in their results. It’s unusual to see the outlook to include the comment of slightly down in terms of their FY20 guidance - Janus Henderson (JHG) was unfortunately worse, down by 12% after missing earnings expectations when they reported overnight while on the flipside, Resmed (RMD) added nearly 10% after reporting a better than expected quarterly. More on these stocks in coming notes and our plans for them going forward.

Overall today, the ASX 200 fell -2pts or -0.04% to 6335. Dow Futures are trading up +25points / 0.10%.

Today I sat down with Shaw & Partners Resource Analyst Peter O'Connor & discussed Fortescue Metals (FMG), BHP & RIO, along with Alumina (AWC), Whitehaven (WHC) & Newhope (NHC) plus best picks in the Gold space.

Broker moves:

· Pendal Group Upgraded to Neutral at UBS; PT A$7.85

· Pendal Group Upgraded to Neutral at Credit Suisse; PT A$7.65

· Pendal Group Upgraded to Overweight at JPMorgan; PT A$8.90

· Austal Cut to Hold at Argonaut Securities; Price Target A$2.55

· Janus Henderson GDRs Downgraded to Neutral at Macquarie; PT A$36

· Dexus Cut to Underperform at Macquarie; Price Target A$11.36

· Sky Network TV Raised to Outperform at First NZ Capital

· Super Retail Upgraded to Hold at Morningstar

· Raised to Positive at Evans and Partners

· Credit Corp Downgraded to Sell at Morningstar

· Sundance Energy ADRs Rated New Outperform at Imperial; PT $6

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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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