The Match Out: ASX follows US lower, tech cops the most heat while Macquarie Group's result is solid

James Gerrish

Market Matters

The local market copped its biggest hit since February today, falling to a 6-week low after the US market tumbled overnight. Yields were higher again, on the back of the BOE raising rates and also talking to the chance of inflation hitting 10%+ in the final quarter of the year. Tech was the hardest hit, real estate a near second place on the back of the rally in yields. Despite the savage selling, consumer staples held up well to only finish marginally lower.

  • The ASX 200 finished down -159pts/-2.16% at 7205
  • All sectors finished in the red today. Tech -4.47% and Real Estate -3.37% the biggest losers.
  • Consumer staples closed -0.17% down, a clear winner despite the fall
  • Macquarie Group (MQG) -7.78%, reported FY22 earnings today. The numbers seemed reasonable with a small beat on NPAT at $4.7b and a 29% jump in the dividend to $3.50/share. The Commodity Markets segment was the standout with 37% growth in income while the banking segment continues to build market share. They flagged a softer start to FY23
  • REA Group (REA) -8.07%, 3Q numbers in from the property classifieds company today. 3Q was softer than expected despite a +11% rise in listings and some price increases coming through. Commercial & Developer earnings were flat despite a strong start to the year. They flagged a weak 4Q with ANZAC day and Easter timing along with the election.
  • Atomos (AMS) -49.17%, a savage day for the video equipment business which downgraded guidance by at least 10.5%. The downgrade comes 3 weeks after the CEO left. The market was hoping new products would help support earnings. They were disappointed.
  • Iron Ore was ~0.9% lower in Asia today.
  • Gold was marginally lower today to ~US$1875/-0.1%.
  • Asian stocks were missed. Shanghai is the worst with a ~4% fall, but the Nikkei was trading +0.58% after coming back online after 2 days off.
  • US futures are flat to marginally higher, Nasdaq the best of them at +0.16%  

ASX 200

Stocks for the week

Sectors for the week

Broker Moves

  • Alliance Aviation Cut to Market-Weight at Wilsons; PT A$4.19
  • Corporate Travel Cut to Neutral at Citi; PT A$25.49
  • NAB Cut to Hold at Jefferies; PT A$34.20
  • ARB Raised to Buy at Goldman; PT A$43

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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