The Match Out: ASX runs out of steam, Douglass relinquishes Magellan (MFG) board seat, Wesfarmers (WES) takeover of API cleared

James Gerrish

Market Matters

A disappointing session today with early strength fading throughout the day. The index was at one stage up 56pts (+0.77%) to 7350, the highest level in a month before falling a total of 72pts and closing on the low of the day. Tech was a surprise star in the with most holding up well throughout the session managing to build on the momentum from last week. The resource sectors were also in the black on a softer day thanks to support from commodity markets.

  • The ASX 200 finished down -15pts (-0.22%) at 7278
  • Tech outperformed the broader market by more than 2.5% to finish ahead of the pack.
  • Industrials and Healthcare were the main detractors, both falling more than 1%.
  • Australian Pharmaceutical Industries (API) will be taken off the boards tomorrow after the courts approved the takeover by Wesfarmers (WES). It’s a change in scenery for Wesfarmers with API’s franchise model.
  • Magellan (MFG) fell -4.32% after announcing Hamish Douglass has resigned from the Board. He’s been on medical leave since early February with no return date set.
  • The Bloomberg Commodity Index was up 1.28% which helped support materials stocks. Crude oil also tracked higher today.
  • Iron Ore fell slightly, down -0.73% in Asia
  • Gold was marginally higher, +US$5 in Asia, to be around $US1926 at our close
  • Asian markets were mixed. Hong Kong (-1.54%) and the Shanghai index (-0.88%) fell as the PBOC left rates on hold over the weekend. Japan’s Nikkei was up +0.65% today.
  • US Futures are pointing to a weak start to the week. S&P futures -0.42% and Nasdaq -0.61% at the time of writing. 


Broker Moves

  • Cut to Hold at Morgans Financial Limited

Major Movers Today

Enjoy your night

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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