The Match Out: ASX rolls over, Energy stocks smashed, Whitehaven (WHC) lower on mixed quarterly

James Gerrish

Market Matters

Local equities traded to their lowest intraday level since the 29th September during today’s broad-based selling. Following the overnight moves and compounded by further weakness in US futures today, Aussie equities finished the week with a straight sets smacking. Energy and Materials felt the worst of it but all sectors were weaker on the day. Inflation concerns was the main issue on traders’ minds today, a flight to cash ahead of the weekend was on the agenda for most.

  • The ASX 200 finished down -166pts / -2.27% to close at 7175.
  • All sectors were down more than 1%, Consumer staples was the best of the sectors with a -1.05%, the blow likely cushioned given recent weakness in the sector.
  • Energy was hit hard following a surprise jump in Crude Inventories in the US overnight.
  • Whitehaven Coal (ASX:WHC) revised production guidance lower on the back of weather and COVID issues. Shares were hit hard but not too dissimilar than peers, news that they expected to be debt free within weeks helped soften the blow.
  • BHP (ASX:BHP) shareholders voted in favour of collapsing the DLC structure overnight. The unification process is expected to complete on 31 Jan.
  • Gold is marginally higher in Asian trade at $1,841/oz.
  • Asian markets were sold in similar fashion to the local market, Japan’s Nikkei off -1.63%, Chian’s Shenzhen down -0.88% and while the Hang Seng was the best, the index still fell -0.75%.
  • US Futures pointing to a weak start tonight, S&P 500 futures off -0.68% and Nasdaq futures pointing to a fall greater than 1% on the open.

ASX 200 Chart

Sectors this Week

Source: Bloomberg

Stocks this Week

Source: Bloomberg

Broker Moves

  • Pro Medicus Raised to Add at Morgans Financial Limited
  • ASX Cut to Underweight at Morgan Stanley; PT A$72.50
  • ANZ Bank Raised to Overweight at JPMorgan
  • Alumina Cut to Neutral at JPMorgan; PT A$2.20
  • Rio Tinto Cut to Sell at Liberum
  • Clinuvel Raised to Buy at Jefferies; PT A$32
  • Sandfire Cut to Underweight at JPMorgan; PT A$5.60

Major Movers Today

Have a great night

James, Harry 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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