The local market finally conceded to the growing murmurs of weakened global growth outlook today, giving back much of the week’s gains – although still managing to finish 11pts/ 0.17% higher for the 5 sessions. Unsurprisingly the most pain was felt where the market has been strong of late – the banks, materials and energy were hit the hardest.
The banks were in the box seat today with CBA head Matt Comyn fronting a House of Reps committee, saying that the bank is currently dealing with around 1,000 customer complaints, with more than 90% being lodged in recent months. The bank has paid out $1.4b in remediation, and says the new system is working as it should. Westpac also faced the stand as the bank still struggles to defend its poor culture.
The big loser from a stock level came from Infigen (IFN) which was told it was to be removed from the ASX200 index. Automotive Holdings (AHG) is also making way for HUB24 & Pinnacle Investments (PNI).
Overall today, the index closed down 60pts or -0.96% to 6203. Dow Futures are trading down -48 points / -0.19%.
ASX 200 Chart
ASX 200 Chart
CATCHING OUR EYE
Sectors this week;
Stocks this week;
Broker Moves; SocGen were pretty vocal about their negative spin on resources saying that most of the momentum has settled and with the negative macro outlook it was time to take some money off the table here.
- Beach Energy Downgraded to Neutral at Goldman; PT A$2.15
- BHP Group Downgraded to Hold at SocGen; PT 16.80 Pounds
- Rio Tinto Downgraded to Sell at SocGen; PT 38.80 Pounds
- Champion Iron Rated New Buy at Cormark Securities
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