The Match Out: A strong GDP can’t stop the ASX from sliding away
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The ASX drifted lower throughout the day with no meaningful leads from overseas indices, and better-than-expected economic growth was ignored with some investors potentially guilty of considering September's negative seasonal reputation.
- The ASX 200 finished Wednesday down -57pts/-0.78% at 7257.1 – near the day’s lows, from bullish to bearish in 24 hours!
- The Energy sector was best on the ground advancing +1.1% while the other 10 sectors all ended the day lower.
- Tech (-1.51%) and Industrials (-1.31%) were the weakest links while Consumer Services also fell (-1.29%).
- Australia’s economy is growing faster than expected with the GDP expanding +0.4% in the second quarter, up from +0.2% in the previous quarter and +0.3% that was expected.
- Bond yields edged higher on the news but again the $A paid no attention to a theoretically good number.
- The ASX drifted lower through the day after the release as the need for interest rates to be higher for longer gained traction with investors.
- NSW Treasurer announced that coal royalties will be hiked by +2.6% from July’24, the first such move in 15 years in an effort to boost the ailing economy – the important takeout being the acknowledgement that we need coal power for longer.
- The net bullish news for coal sent related stocks higher with New Hope (ASX: NHC) +0.5% and Whitehaven (ASX: WHC) +0.47% both enjoying the announcement and its implications.
- Orora (ASX: ORA) tumbled -12.44% on its first day of trading since announcing a $1.2 billion capital raise to fund the Saverglass deal.
- Macquarie Group (ASX: MQG) fell -3.8% after pushing back its asset sales into the 2H putting a brake on short-term profits.
- Qantas Airways (ASX: QAN) rallied another +1.1% post-Alan Joyce as the company enters a new era with customers back in focus, it’s about time!
- Altium (ASX: ALU) caught our eye in the loser's enclosure falling almost 4.4% on no obvious news although the day did have a “profit-taking” feel about it.
- ResMed (ASX: RMD) -2.8% on concerns from UBS around Ozempic weight loss drug and a rising number of competitors.
- Iron Ore was up just over 1% in Asia, as it continues to defy the bears with the Futures trading ~US$119/mt
- Gold hardly moved throughout the Asian session trading at US$1953 at our close.
- Asian stocks were firmer but nothing dramatic, Hong Kong was up +0.2%, Japan +0.60% and China fell -0.20%
- US Futures are all down circa -0.10%
ASX 200 Intraday
ASX 200 Daily
Broker Moves
- Premier Investments Cut to Neutral at JPMorgan; PT A$25.50
- Woolworths Group Raised to Neutral at JPMorgan; PT A$38.40
- JB Hi-Fi Raised to Overweight at JPMorgan; PT A$52
- Harvey Norman Cut to Underweight at Morgan Stanley; PT A$3.50
- Cochlear Cut to Underweight at Morgan Stanley; PT A$240
- TNC AU Rated New Speculative Buy at Morgans Financial Limited
- PolyNovo Rated New Add at Morgans Financial Limited; PT A$1.88
- Webjet Raised to Hold at Jefferies; PT A$7
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