The Match Out: ASX hits 6800, now up 6% from recent lows, Megaport (MP1) disappoints

James Gerrish

Market Matters

Another positive session for the ASX today with the market edging higher and is now ~400pts/6% up from the recent lows. AGM season is well underway and some hits and misses as always, with a lot of action under the hood. Yesterday a key holding was up 14%, today one is down 20%....Rocks and diamonds and volatility will likely persist.

  • The ASX 200 finished up +20pts/ +0.31% at 6800
  • The Utilities sector was best on ground (+0.95%) while Industrials (+0.90%) & Discretionary (+0.77%) were also strong.
  • Energy (-0.75%) and IT (-0.10%) the weakest links.
  • James Gerrish was on Ausbiz this morning talking about BHP, HUB and the market generally – Click Here to Watch
  • BHP( ASX: BHP ) -0.96% out with production numbers today that were fine, plus reconfirmed FY guidance, no details around OZL bid.
  • Northern Star (ASX: NST) -0.74% produced 369koz at $1788/oz in the quarter which was below plan but will be made up in future qtrs. Maintain FY23 guidance but weighted to 2H.
  • Megaport (ASX: MP1) -22% whacked on growth, +1% in total ports added simply not enough.
  • Whitehaven Coal ( ASX: WHC) +1.06% was down early but had a strong recovery with lower production offset by higher prices.
  • Iron Ore was flat in Asia.
  • Gold was down to ~US$1647 at our close.
  • Asian stocks were mixed Hong Kong down -1.59%, Japan +0.37% while China was off -0.84%
  • US Futures are all up, around +0.70%

ASX 200 Chart

BHP Group (ASX: BHP) $39.25

BHP -0.96%: A good quarterly update from BHP today provides a strong start to FY23. No change to any FY23 guidance projections and no update on the bid for Oz Minerals (offer at $25/share).

Megaport (ASX: MP1) $6.61

MP1 -22.14%: Opened around par this morning and traded higher initially following their quarterly trading update that showed only small growth in the number of ports added during the period while Capex was also higher than expected. Revenue of $23 million was +5% q/q with monthly recurring revenue up +3% q/q, however, the number that really counts is total ports which came in at 9,606, a growth rate of only +1% q/q which is not good enough. The market latched onto this, with some big volume going through after lunch and the stock slid ~20% as a result. A disappointing outcome for a stock we have recently bought in our growth portfolio ~ paying $7.82 at the end of last month.

Broker Moves

  • St Barbara Cut to Sell at Canaccord; PT 50 Australian cents
  • Corporate Travel Rated New Buy at Goldman; PT A$20.20
  • St Barbara Cut to Neutral at Macquarie; PT 57 Australian cents
  • Costa Cut to Neutral at Goldman; PT A$2.25
  • HUB24 Cut to Neutral at Evans & Partners Pty Ltd; PT A$27.20
  • Nib Raised to Add at Morgans Financial Limited; PT A$8.27
  • Johns Lyng Raised to Buy at Bell Potter; PT A$7.90

Major Movers Today

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James Gerrish
Portfolio Manager
Market Matters

James is the Lead Portfolio Manager & primary author at Market Matters, a digital advice & investment platform with over 2500 members that offers real market intel & portfolios open for investment. He is also a Senior Portfolio Manager at Shaw and...

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