The Match Out: 3 consecutive positive weeks, BOQ can’t take the shine of banks

There was a delayed reaction to strength seen overnight on the local market today which rallied strongly out of early session lows. Materials were the standout with a broad rally from the sector, though Gold stocks were the key contributors as the precious metal cracked 1-year highs. Financials were also strong despite a soft update from one of the regional banks. Overall the ASX had a great week with all 11 sectors finishing higher, the index put on +142pts/+1.98% and is sitting around 5-week highs.

• The ASX 200 finished up 37pts/ +0.51% at 7361
• The Materials sector was the standout today, rising 0.89%, while Financials (+0.76%) and Staples (+0.58%) also supported the index.
• Real Estate & Healthcare were both down -0.26%, the only sectors to close lower.
• BOQ (ASX: BOQ) -0.92% was weaker after pre-releasing 1H numbers which were below expectations, and cutting the interim dividend by 10%. Profit numbers are expected to be ~3.5% below consensus when the official announcement lands on 20 April, though the bank’s capital position was better than expected.
• Karoon (ASX: KAR) -5.44% was soft after saying production at their Buana site would be extended, saying production for the year would likely come in at the low end of guidance.
• IGO Limited (ASX: IGO) +5.33%, secured land for their battery material facility in WA, helping the stock rally, though peers were also strong
• Harry talked Travel Stocks with Ausbiz following yesterday’s Corporate Travel (CTD) contract win – Click Here to Watch
• US Banks kick off Quarterly reporting tonight with four banks presenting numbers. The market will be watching bad debts and net interest margins as usual, but a close eye will be on marked-to-market assets and the rate of loan growth with tightened credit markets.
• US Retail sales will also be released tonight, expected to drop by -0.4%
• Iron Ore fell around -0.4% in Asian trade, though the WA miners were largely higher after Port Headland confirmed it would look to recommence shipping today following the passing of a cyclone.
• Gold cracked a new 12-month high in USD terms, up marginally in Asia today to $US2042. No surprise then that gold stocks were the star performers on the market.
• Asian stocks also rallied into the weekend. The Nikkei was up +1.14%, Hang Seng +0.30%
• US Futures are pointing to a soft start to Thursday’s session there, S&P500 -0.10% and the Nasdaq futures are -0.12%.

ASX 200 Chart

Sectors this week

Stocks this week

Broker moves

• Beach Energy Cut to Neutral at Citi; PT A$1.70
• Champion Iron Raised to Buy at Canaccord; PT A$8.28
• Insignia Financial Raised to Accumulate at CLSA; PT A$3.15
• Evolution Raised to Buy at Canaccord; PT A$4
• Mt Gibson Reinstated Buy at Barclay Pearce Capital; PT A$1.87
• Lottery Corp. Cut to Neutral at Macquarie; PT A$5.35
• New Century Reinstated Buy at Shaw and Partners; PT A$3.60
• Coda Minerals Reinstated Buy at Shaw and Partners
• Treasury Wine Raised to Buy at CLSA; PT A$16.70
• SmartGroup Cut to Neutral at Citi; PT A$6.80

Major movers today

Have a great night

The Market Matters Team

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