The Match Out: ASX recovers, Resource stocks lead the way, Go the Sea Eagles!

The ASX bounced back tentatively today recovering a third of yesterday’s decent decline – most buying in the Material stocks supported by IT and Energy which suits MM’s current positioning – healthcare lagged. Overall, a good session to end a soft week.

• The ASX 200 finished up +37pts / +0.50% to 7406 – 75% of stocks ended higher however we did underperform other Asian markets + there was a positive tailwind from US Futures – we should have done more.
• For the week the ASX fell -1.55%, materials and real-estate the biggest drags
• For all those subscribers that followed the APEX Outback Postie Bike Ride through South Australia last year, and supported me so generously – it’s on again at the moment, I’m obviously not there which is disappointing however I’ll be back again next year. Here’s a link to the commentary from last year for those interested
• Lots of activity from the brokers in the Gold stocks today (outlined below) – Barrenjoey initiating on a bunch
• Alumina (AWC) +6.34% higher after Alumina prices rallied +15% overnight. We had CEO & CFO in (virtually) today, the story is a good one and the stock should go higher. We have buys on AWC & S32 here.
• Oil Search (OSH) & Santos (STO) to merge and create a $21b Oil and Gas company – bigger is better in this space these days – the deal valuing OSH at $3.78. OSH +2% today to $3.73 while Santos (STO) +0.5% to $6.06. We own STO.
• US BNPL player Affirm (AFRM US) rallied overnight (aftermarket) posting Q4 earnings across the group, with a solid beat across key metrics and upgraded guidance. A good read-through for the local sector + importantly it makes Zip Co (Z1P) screen even cheaper. Z1P +2.69% today to close $6.87.
• Gold rallied in Asia– sitting around $US1802 at our close
• Iron Ore Futures were flat
• In Asia, Hong Kong bounced back most of yesterday’s decline trading 1.6% higher, China +1% and Japan +1.25%
• US Futures up across the board
• Manly v Melbourne tonight – Shaw this week extended our Sponsorship of the Sea Eagles for another 2 years. Go the Sea Eagles, I think we’re a real threat in this finals series

ASX200

Sectors Moves This Week

Broker Moves

• Regis Resources Raised to Outperform at Macquarie; PT A$2.80
• St Barbara Raised to Neutral at Macquarie; PT A$1.60
• Newcrest Raised to Outperform at Macquarie; PT A$29
• Dacian Gold Raised to Outperform at Macquarie
• OceanaGold GDRs Raised to Outperform at Macquarie; PT A$2.80
• Jupiter Mines Cut to Underperform at Macquarie
• Evolution Raised to Neutral at Macquarie; PT A$4
• CSL Rated New Overweight at Barrenjoey; PT A$330
• Accent Group Raised to Neutral at Citi; PT A$2.14
• Magellan Financial Cut to Underweight at Jarden Securities
• Gold Road Rated New Overweight at Barrenjoey; PT A$1.75
• Newcrest Rated New Overweight at Barrenjoey; PT A$34
• Evolution Rated New Underweight at Barrenjoey; PT A$3.80
• Northern Star Rated New Overweight at Barrenjoey; PT A$13.50
• Regis Resources Rated New Equal-Weight at Barrenjoey; PT A$2.50

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