The Match Out: ASX rallies, IT leads the way, Go the Sea Eagles!
A bullish session for the market today with buyers emerging following a pullback in energy & material prices overnight. The IT stocks built on yesterday’s bounce to lead the line however there was support right across the industrial and financial sectors, while energy & materials gave back some recent gains. In terms of index contribution, the big 4 banks added ~34 pts while BHP, RIO & FMG took ~30 pts off.
More importantly, Manly kicks off the NRL season tonight playing the Panthers at the foot of the mountains. Go the Sea Eagles!
- The ASX 200 finished up +77pts/ +1.10% at 7130
- The IT sector was best on ground (+3.29%) while Consumer Discretionary (+2.85%) was also strong.
- Energy (-2.48%) and Materials (-1.78%) the weakest links however they actually held up better than their overseas counterparts.
- Banks had a great session today, up between 2-4% a piece
- Oil & Gold prices down overnight while Iron Ore fell 2.5% in Asia today – the commodity complex gave back some recent strength.
- Woodside (WPL) -4.67%, Santos (STO) -2.47%, Beach Energy (BPT) -5.9%.
- Wait for it….Myer (MYR) +24.39 reported 1H results and rallied today, the business showing signs of improvement.
- The travel stocks benefitted from a weaker Oil price, Qantas (QAN) +5.79% was solid while Flight Centre (FLT) +6.6% was the star.
- Paladin (PDN) +11% rallied on Uranium price strength which printed US$53 overnight. Clearly a mistake selling PDN last week.
- Nickel Mines (NIC) -13.17% universally downgraded by brokers
- After 25 years at the RBA, Deputy Governor Guy Debelle is leaving to become the CFO of Fortescue Futures Industries
- Iron Ore was up down 2.5% in Asia
- Gold was hit overnight and fell another US$13 in Asian today, to be around $US1980 at our close
- Asian stocks were all higher, Hong Kong up +0.87%, Japan +3.72% while China was up +1.76%
- US Futures are all down a touch
Myer (MYR) 51c
MYR +24%: reporting their first-half results for 6 months to 29 January, the department store surprised to the upside for the first time in a while. Profits were up 55% on last year after stripping out job keeper, with sales +8.5%. They’ll pay a dividend for the first time since FY17 as well, giving 1.5c back to shareholders. The customer-first strategy is working (imagine that) with an improved online experience and a more targeted and leaner in-store experience helping lift sales. The second half has started strongly as well with sales up more than 15% for the first 5 weeks, comping at a better rate than the first half shows solid momentum in the turnaround.
- Centuria Industrial Raised to Buy at Moelis & Company; PT A$4.12
- Australian Finance Rated New Buy at Barclay Pearce Capital
- Bega Cheese Raised to Buy at UBS; PT A$5.40
- Nickel Mines Cut to Hold at Ord Minnett; PT A$1.60
- Nickel Mines Cut to Neutral at Credit Suisse; PT A$1.35
- Nickel Mines Cut to Underperform at Jefferies
- Sandfire Rated New Neutral at Barrenjoey; PT A$6
- OZ Minerals Rated New Neutral at Barrenjoey; PT A$26
- 29Metals Rated New Underweight at Barrenjoey; PT A$2.05
- Breville Rated New Neutral at Barrenjoey; PT A$25
Major movers today
Enjoy your night
The Market Matters Team
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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...