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.

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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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