The Match Out: ASX slides into a weekend after a strong week for stocks, Fortescue (FMG) looks for new CEO

James Gerrish

Market Matters

A softer day to end the week, though selling was pretty subdued from an index point of view. A weak lead from US markets weighed on stocks, particularly the tech sector which was in the firing line both here and overseas. Healthcare and energy were also notably weak while the utilities sector was carried by strength in two of the heavyweights of the sector. There was little in the way of news flow to drive markets, weakness largely blamed on the COVID-19 omicron variant’s ability to spread, though one eye is certainly on data points out of the US tonight.

  • The ASX 200 finished down -31pts / -0.42% to close at 7353.
  • Despite the weakness utilities, discretionary and communications sectors all finished better than 0.25% higher.
  • Fortescue Metals (ASX: FMG) CEO Elizabeth Gaines is set to leave the position, moving into a non-Executive Director role for the company. It shouldn’t have come as a surprise given the company will need a completely different set of skills at the top with the shift in focus from iron ore to the Fortescue Future Industries initiatives.
  • Oil Search (ASX: OSH) will roll into Santos (ASX: STO) from Monday as final approvals for the merger were met today.
  • CPI data in the US tonight will be closely watched. Consensus estimates have it at 6.8% YoY, up from 6.2% at the last print.
  • Despite the Friday jitters the market managed a gain of +112pts/+1.55% for the week.
  • Gold is marginally higher in Asian trade at $1,777/oz.
  • Asian markets were sold in similar fashion to the local market, Japan’s Nikkei off -0.63% at the time of writing, the Heng Seng down -0.55%.
  • US Futures pointing to a flat start tonight.

ASX 200 Chart

Sectors This Week (Source: Bloomberg)

Stocks This Week (Source: Bloomberg)

Broker Moves

  • Alumina Cut to Neutral at Macquarie; PT A$1.80
  • Sims Raised to Outperform at Macquarie; PT A$18.65
  • St Barbara Raised to Outperform at Macquarie; PT A$1.80
  • Mincor Raised to Outperform at Macquarie; PT A$1.55
  • Evolution Raised to Outperform at Macquarie; PT A$4.70
  • Perpetual Raised to Buy at Citi; PT A$40.40
  • Regis Resources Raised to Outperform at RBC; PT A$2.50

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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