The Match Out: ASX down but recovers ~100 points from lows, Energy & Resources weigh
An interesting session for the ASX with the futures indicating an open down ~100 points, however, that was short-lived with some large volume through the SPI knocking the market down by nearly twice that come 10.30 am, before a sustained recovery played out for the rest of the day.
At its worst, the ASX200 was down ~180 points before bargain hunters emerged and the market finished ~110 points up from the morning nadir – a strong turnaround led by a recovery in technology with a large cross-section of stocks rallying more than 6-7% from their morning sell-off.
- Gold was up ~US$8 in Asia sitting back at US$1862/oz at our close.
- Asian markets were mixed, the Nikkei in Japan-0.76%, Hong Kong stocks -1.9% while China was up 1.5%!
- US Futures are higher, Dow +216pts, Nasdaq +1.55%.
Pendal (PDL) $5.33
PDL +8.11%: a strong first half result for the investment management firm ensured the share price was well supported against a weaker backdrop.
Base fee revenue was up 35% to $317.7m and performance fees up 8% meant revenue beat estimates by at least 5%. Costs were up 20% but still came in better than expected which meant UPAT at $131m was a ~25% beat to market. Performance of FUM has dipped slightly on a 1-year view, though 38% still outperforms its benchmark over that period.
They’’ now launch a $100m buyback which was announced at the time Perpetual (PPT) launched a takeover bid for the company.
Pendal is trading well above the intrinsic value of that offer which now looks very opportunistic given the first half’s performance. While margins are expected to normalise in the second half, they’ll likely settle above what has been priced in
Transurban(ASX: TSL) Cut to Underweight at Jarden Securities; PT A$13.40
APA Group(ASX: APA) Cut to Neutral at UBS; PT A$11
Westpac(ASX: WBC) Raised to Overweight at Morgan Stanley; PT A$25.70
Xero (ASX:XRO) Raised to Outperform at RBC; PT A$130
Westpac (ASX:WBC) Raised to Hold at Jefferies; PT A$21.30
Evolution(ASX: EVN) Raised to Overweight at JPMorgan; PT A$4.80
Suncorp (ASX: SUN) Raised to Overweight at JPMorgan; PT A$14
AGL Energy (ASX: AGL) Cut to Neutral at JPMorgan; PT A$8.70
Pentanet (ASX: 5GG) Rated New Buy at Shaw and Partners
Major Movers Today
Have a great night,
The Market Matters team
Make informed investment decisions
At Market Matters, we write a straight-talking, concise, twice daily note about our experiences, the stocks we like, the stocks we don’t, the themes that you should be across and the risks as we see them. Click here for your free trial.
The Match Out will be available each day after the market close. Follow my profile to be notified when the latest report is live.
11 stocks mentioned
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...