The Match Out: ASX rallies then fades, BNPL regulation steps up, Have a great weekend all

James Gerrish

Market Matters

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)

Broker Moves

  • 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.

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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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