The Match Out: ASX flat, Banks rally on the week, Energy pulls back after a strong run, Have a great weekend all

James Gerrish

Market Matters

The market limped into the weekend with a distinct lack of conviction. Energy and Materials were weak today, the former actually down around 4% on the week after a strong period of outperformance. But as China ratchets up the rhetoric around high prices, some have been shaken out of a trade that MM believes still has legs.

  • The ASX 200 finished flat today at 7415 – although that was at a one month high.
  • The retailers were strong today rallying 1.35%, as discussed in a timely note we published on the sector this morning – click here

  • On the flipside, Materials and Energy were the weakest link, falling 1.18% and 2.08% respectively.
  • It was my first day back in the office today and I’ve got to say, I’ve enjoyed four months of change working from home. I think the MM portfolios have benefitted from the reflection time this provided in not focusing so heavily on the cut and thrust – the daily market ebbs and flows – which happen in a dealing room with 150 others. Thinking time is very important in the market and is something I’ve enjoyed.

  • Bond yields fell locally today after the RBA intervened, buying $1 billion of bonds to defend its forward guidance of 0.1% for the three years.

  • Banks rallied over the week, Commonwealth Bank (ASX: CBA) climbing 2.5% to $104.88, Westpac (ASX: WBC) advanced 1.4% to $25.74, National Australia Bank (ASX: NAB) added 0.7% to $28.86 and ANZ Bank (ASX: ANZ) rose 1.2% to $28.2

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  • Gold was higher during the Asian trade, hitting US$1,787 at our close

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  • Iron Ore Futures were flat again.
  • Not a lot was happening in Asia today, China down smalls, Hong Kong up smalls.
  • US Futures are flat.

ASX 200

Sectors this week (Source: Bloomberg

)

Stocks this week (Source: Bloomberg) 

Broker moves

  • Mirvac Group Reinstated Hold at Barclay Pearce Capital

  • Orora Raised to Outperform at Macquarie; PT A$3.60

  • Altium Raised to Positive at Evans & Partners Pty Ltd; PT A$42

  • Bluescope Raised to Outperform at Credit Suisse; PT A$28.30

  • Camplify Cut to Hold at Morgans Financial Limited; PT A$4.20

  • Woodside Raised to Positive at Evans & Partners Pty Ltd

Major movers today

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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...

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