The Match Out: ASX hit again, banks continue to weigh

James Gerrish

Market Matters

It was a tough session for Aussie stocks with around 75% of the market trading lower while around 7% of the ASX 200 fell by more than 4%. The banks were again on the nose, all finishing down, although there was a “buy the dip” mentality that played out after a tough morning session. Commonwealth Bank (ASX: CBA) was the most obvious beneficiary, finishing around $2 above its intra-day low, however it wasn’t enough to support the broader market which finished on the low of the session.

  • The ASX 200 finished down -101pts/ -1.42% at 7019 – the low of the day.
  • The Energy sector was the best on the ground again (+0.56%) and the only sector in the green while Healthcare (-0.16%) was a relative performer.
  • Materials (-2.23%) and Financials (-2.07%) were the weakest links.
  • Shaver Shop (ASX: SSG) +4.9% was solid following a good update – like-for-like sales are running at +3.7% YTD versus FY21, and nearly +28% higher than pre-COVID,
  • Magellan (MFG) +2.15% announced Hamish Douglas was coming back into the fold in a consultancy capacity.
  • Commonwealth Bank (ASX: CBA) -2.59% now believe Sydney house prices are set to fall by 11% this year, and Melbourne by 10%.
  • Of the banks today, Westpac (ASX: WBC) -3.69% again lagged, while Bank of QLD (ASX: BOQ) -1.84% was the relative performer.
  • Blackstone received the green light to operate Crown Sydney – The Crown Hybrids (CWNHB) we own in the income portfolio were up 2% - you can view our last spiel on these notes Here
  • It was interesting to see Megaport (ASX: MP1) +2% buck the negative trend today – worth keeping an eye on this one, it will be a high beta way to play any tech rebound, something that’s been elusive so far!
  • Xero (ASX: XRO) -2.6% raised prices across its suite of plans today, the most common plans up around 8%.
  • Aristocrat (ASX: ALL) +0.96% looks good here – it’s one of very few stocks that looks poised to rally.
  • Iron Ore was flat in Asia today – the Iron Ore stocks held up in a soggy market.
  • Gold was flat again at around US$1849.
  • Asian stocks were mostly lower – Hong Kong fell -0.91%, China -0.61% while Japan was up +0.39%.
  • US Futures are all lower but not by a lot – they did weigh on our market as the day progressed.

ASX 200 chart

Shaver Shop (ASX: SSG) $1.07

SSG +4.9%: a positive update for the personal care retailer today help the stock edge higher, outperforming a weak market. With just one month left in the financial year, LFL sales are running at +3.7% YTD vs FY21, and nearly +28% higher than pre-CVOID, FY19. More than half of gross profit is said to be coming from products exclusive to Shaver Shop, helping to support both demand and margins. With just a few weeks left in the year, they provided sales guidance of $221-223m, and NPAT guidance of $16.25-16.75m, around 5% above consensus expectations. It seems people are spending money on shavers, straighteners and blow dryers again as they return to the office.

Shaver Shop

Broker moves

  • Pinnacle Investment Cut to Hold at Morgans Financial Limited
  • Atlas Arteria Cut to Sector Perform at RBC; PT A$7.70

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.

........
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.

2 topics

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.