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

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

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