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

James Gerrish

Market Matters

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


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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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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