The Match Out: ASX rallies, Energy stocks fly while IT bounces back, First video update for the year

James Gerrish

Market Matters

A strong showing by Energy and Technology shares helped the ASX recover the majority of yesterdays losses today, although the best of the session was seen early on before the “sell the pop” mentality became evident. Crude oil rallied around 4% overnight to trade above $US80/bbl and remains bullish while lower yields helped a bounce back in tech.

  • The ASX 200 added around 48points / +0.66% to 7438.
  • Energy (+3.02%) and IT (+2.06%) were the main drivers while the supermarkets remained under some pressure, off -0.59% to be the weakest link.
  • Chinese Inflation data out today with CPI +1.5% year-on-year versus 1.7% expected while Producer Prices rise 10.3% below the 11.3% expected for the year – implying that China has scope to stimulate.
  • Afterpay (ASX: APT) +4.75% after saying the Bank of Spain had approved Block’s takeover – Zip Co (ASX: Z1P) also put on 2%.
  • Fortescue (ASX: FMG) -1.14% down after Citi downgraded to sell. They say the premium that FMG trades on versus other iron ore names is not justified and the market is applying an “unreasonable” valuation expectation for its clean energy arm.
  • Santos (ASX: STO) +3.56% and other energy stocks rose after Oil put on another 4% overnight – we like the energy space here.
  • Iron Ore was up 3% in Asia today.
  • Gold was also higher trading at US$1820 at our close.
  • Asian markets all positive today, Nikkei in Japan (+1.98%) while Hong Kong was (+2.56%) & China added (+0.56%).
  • US Futures are higher, up around 0.15%.

ASX 200 Chart

Weekly Video Update

In the first video back for the new year, James and Harry discuss portfolio performance for December, what helped and what hindered returns, and what they expect for the year ahead.

Broker moves

  • Fortescue Cut to Sell at Citi
  • Sonic Healthcare Cut to Neutral at Credit Suisse; PT A$46.50
  • Beacon Lighting Rated New Neutral 1 at Barrenjoey; PT A$3.10
  • Newmark Property Rated New Positive at Evans & Partners Pty Ltd
  • TPG Telecom Raised to Overweight at JPMorgan; PT A$7.45.

Major movers today

Enjoy your 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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