The Match Out: ASX down a touch, the turnaround continues for Treasury Wines
- The S&P/ASX 200 fell -14 points / -0.21% to close at 7112
- Energy (+1.37%) & Healthcare (+1.11%) the clear standouts on the upside.
- IT (-2.43%) and Utilities (-1.55%) the weakest links.
- Jobs data out this morning was weaker than thought even though the unemployment rate fell to a 48-year low of 3.4% in July. Economists predicted a gain of +25k jobs but we lost -40k instead. The participation rate fell which led to the drop in the headline unemployment rate. The AUD fell on the thinking that the RBA could pause, or at least be less aggressive in raising rates from here.
- Transurban (ASX:TCL) -3.41% fell on a weaker FY23 outlook and lower forecasted dividend.
- Medibank (ASX:MPL) +0.85% missed FY22 earnings due to investment losses but the underlying result was solid and guidance was good.
- Treasury Wines (ASX:TWE) +4.04% had a volatile day, it was weak early which was very surprising given a good result particularly around margins and guidance for more of the same.
- Xero (ASX:XRO) -7.11% fell due to comments at their AGM that subscriber growth in the UK was weaker than hoped.
- Super Retail (ASX:SUL) -5.89% dropped on universal broker downgrades – the first reaction to the result yesterday was the wrong one.
- Origin Energy (ASX:ORG) -2.64% weaker on a messy FY22 result and an overall miss.
- Whitehaven Coal (ASX:WHC) +2.21% hit an 11-year today trading above $7 for the first time since 2011. The momentum continues right across the coal sector.
- Myer (ASX:MYR) +3.09% higher as it looks like things are hotting up with Solomon Lew seeking a board seat at his long-time takeover target.
- Austal (ASX:ASB) -1.09% weaker despite increasing FY22 EBIT guidance by ~12% on the back of the OPC contract that was recently awarded. The announcement noted the incumbent manufacturer has appealed the decision, however, it is unlikely to impact the deal.
- Iron ore futures lower in Asia, off 1.77%
- Gold was weaker overnight but stable through the Asian session trading US$1763/oz at our close.
- Asian markets were soft, the Nikkei in Japan fell -0.8%, while Hong Kong was off -0.82% and China fell -1%.
- US Futures are lower, but not by a lot ~0.20 across the board.
ASX 200 Chart
Weekly Video Update
Xero (XRO) $90.65
Transurban (TCL) $14.16
Treasury Wine Estates (TWE) $13.14
Origin Energy (ORG) $5.91
Medibank (MPL) $3.55
- Vicinity Centres Cut to Neutral at Macquarie; PT A$2.03
- Downer EDI Raised to Outperform at Credit Suisse; PT A$5.75
- Seek Raised to Buy at UBS; PT A$27.80
- Challenger Cut to Neutral at UBS; PT A$6.80
- Corporate Travel Cut to Hold at Ord Minnett; PT A$20.76
- Bapcor Cut to Hold at Morgans Financial Limited; PT A$7.36
- Carnarvon Energy Ltd Cut to Speculative Buy at Canaccord
- Super Retail Cut to Neutral at Jarden Securities; PT A$10.75
- Super Retail Cut to Neutral at JPMorgan; PT A$11
- Domain Holdings Cut to Neutral at JPMorgan; PT A$4
- Super Retail Cut to Underperform at Jefferies; PT A$9
- Austal Cut to Underweight at JPMorgan; PT A$2.40
- Vicinity Centres Cut to Neutral at Evans & Partners Pty Ltd
Major Movers Today
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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...