The Match Out: ASX rallies then fades, BNPL regulation steps up, Have a great weekend all
A very strong first half of the session today with the market storming to a 7350 high at 2pm before sellers took hold and we drifted lower (-50pts) into the close – clearly not a lot of conviction to hold stocks into the weekend. The heavy weight Materials were strong today, up 1.20% supported by Energy while the major drag on the other side of the ledger was IT, down nearly 4%.
- The ASX 200 finished up just +8points / 0.11% at 7304 – a poor session really after an encouraging start.
- The value versus growth argument is building momentum with stark underperformance during the week of high value IT.
- Some of the recent ‘dogs’ (value) are starting to bounce, AGL Energy (ASX:AGL) an example up 1.7% while Virgin Money (ASX:VUK) also added +5.42% higher.
- One sector that didn’t bounce today was BNPL, Afterpay (ASX:APT) – 7.63%, Zip Co (ASX:Z1P) -6.07% on more regulation.
- Magellan (ASX:MFG) went into a trading halt at 2.30pm after losing a material contract – more on this to come out Monday morning. MFG was trading up +1.77% ahead of the announcement however it’s clearly going to be a negative.
- Gold stocks a big winner today as the price of spot gold rallied up through US$1800/oz, Northern Star (ASX:NST) +5.59% the biggest large cap beneficiary while Newcrest (ASX:NCM) added +3.73%.
- Iron Ore edged higher in Asia today. The May Futures contract now the most active up +1.88%.
- Asian markets were lower, The Nikkei in off -1.58%, Hong Kong -1.06 % & China -1%.
- US Futures are now down a touch – around -0.20%.
ASX 200 Chart
Sectors this week (Source: Bloomberg)
Stocks this week (Source: Bloomberg)
- HT&E Raised to Outperform at Macquarie; PT A$2.10
- Accent Group Rated New Overweight at Wilsons; PT A$2.70
- Viva Energy Rated New Neutral 1 at Barrenjoey; PT A$2.35
- Ampol Rated New Overweight at Barrenjoey; PT A$36.68
- Reliance Worldwide Rated New Neutral 1 at Barrenjoey; PT A$6.50
Major Movers Today
Enjoy your weekend
Harry, James and 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.
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...