The Match Out: ASX ends a soft week on the up, Weekly video update covering portfolio performance

James Gerrish

Market Matters

A solid end to a soft week for stocks with buying amongst the resources offsetting weakness elsewhere – the ASX 200 back up through 7200 as buyers of the ~200 point pullback emerged.

  • The ASX 200 finished up +37pts/ +0.52% at 7213
  • The Material sector was best on ground (+1.92%) while IT (+1.04%) & Staples (+0.64%) were also strong.
  • Utilities (-0.84%) and Energy (-0.19%) the weakest links.
  • Weekly Video Update covering November performance for the Market Matters Portfolios – Watch Here
  • For the week, the ASX 200 fell 1.2%, not a bad effort given the rally we’ve had.
  • Sandfire (ASX: SFR+4.81% was strong today as they kick off the sale process of their DeGrussa asset – Copper prices trading at a 6month high overnight helped.
  • Iron Ore stocks were good today on continued optimism around Chinese reopening/stimulus – Fortescue +2.84% and BHP +2.70%.
  • Pinnacle (ASX: PNI-3.77% fell after saying performance fees would be ~$1m this year down from $6.4m last.
  • Lots of press around the price of coal being capped at $125 for domestic consumption – a few initial thoughts and implications for stocks.
  • Australia produces around ~500mtpa of coal, of that, ~50mtpa stays in the country and is used by domestic utilities.
  • This is sold on a cost + formula with prices ~$140-150 at the moment. This will now be capped at $125 pressuring margins for those producers, which include the likes of Peabody, Anglo, Centennial & BHP to a smaller degree.
  • Whitehaven Coal (ASX: WHC) +1.25%, New Hope (ASX: NHC) +2.66% & Bowen (ASX: BCB) +1.85% are exporters – this does not directly impact them.
  • Iron Ore was up today +2.3% to $110/tonne
  • Gold added +0.43% to $1796 at our close
  • US Futures are all up a touch.

ASX 200 Chart

Weekly Video Update

Today Lead Portfolio Manager James Gerrish provides an overview of November Performance for the Market Matters Portfolios.

  • Flagship Growth Portfolio +7.86%
  • Active Income Portfolio +5.32%
  • Emerging Companies Portfolio +4.92%

Watch Here

Sectors This Week – Source Bloomberg

Stocks This Week – Source Bloomberg

Broker Moves

  • Westgold Raised to Outperform at Macquarie
  • Perseus Cut to Neutral at Macquarie; PT A$2.20
  • Gold Road Cut to Neutral at Macquarie; PT A$1.70
  • Capricorn Metals Cut to Underperform at Macquarie; PT A$4.20
  • Maas Group Rated New Buy at Goldman; PT A$4.20
  • Centuria Industrial Cut to Hold at Jefferies; PT A$3.32
  • Downer EDI Cut to Neutral at Macquarie; PT A$4.05
  • Pilbara Minerals Raised to Neutral at Citi; PT A$4.60

Major Movers Today


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.

........
Livewire gives readers access to information and educational content provided by financial services professionals and companies ("Livewire Contributors"). Livewire does not operate under an Australian financial services licence and relies on the exemption available under section 911A(2)(eb) of the Corporations Act 2001 (Cth) in respect of any advice given. Any advice on this site is general in nature and does not take into consideration your objectives, financial situation or needs. Before making a decision, please consider these and any relevant Product Disclosure Statement. Livewire has commercial relationships with some Livewire Contributors.

1 topic

James Gerrish
Portfolio Manager
Market Matters

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...

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.