The Match Out: ASX hit again, banks continue to weigh
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.
- 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.
MORE ON Daily Report
7 stocks mentioned
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...