The Match Out: ASX slips on a quiet day, HUB reports strong quarterly flows

• The ASX 200 finished down -21pts/ -0.29% at 7360
• The Utilities sector was best on ground (+0.67%) while Materials (+0.19%) also finished higher.
• Energy (-1.87%) and Consumer Staples (-1.21%) the weakest links.
• Chinese economic growth came in at 4.5% in the first quarter after Xi Jinping lifted COVID-19 restrictions which led to a rebound in factory and consumer activity.
• Commonwealth Bank (ASX: CBA) thinks the RBA will hike once more in May, although they’re now saying this is very line ball. We find it hard to see the justification for pausing for a month (April), and then going once more (in May) as the final hurrah. We think the RBA is done.
• Quarterly updates from both HUB24 (ASX: HUB) +2.36% & Praemium (ASX: PPS) out today with more on both below.
• Pilbara (ASX: PLS) +4.21% rallied on a UBS upgrade to BUY & $4.60 PT, other Lithium stocks also enjoyed the positive update, IGO Limited (ASX: IGO) +2.66% & Mineral Resources (ASX: MIN) +2% - we own the latter 2.
• Telix Pharmaceuticals (ASX: TLX) +12.67% topped the 200 after reporting a 27% increase in US sales in the three months to March.
• Energy stocks fell on reports of an LNG glut, Woodside (ASX: WDS) -2.39% & Santos (ASX: STO) -1.91%.
• Iron Ore was up ~2% in Asia, the Iron Ore coys edged marginally higher.
• Gold rebounded back up above $US2000/oz. Gold stocks were fairly muted.
• Asian stocks were mixed Hong Kong down -0.90%, Japan +0.42% while China was up +0.20%
• US Futures are all up a touch – nothing significant.
• No companies we own reporting in the US tonight, although we have Blackstone (BX US) Freeport (FCX US) & HCA Healthcare (HCA US) out later in the week.

ASX 200

HUB24 (ASX: HUB) $28.15

HUB +2.36%: Rallied today following their Q3 update that showed net flows of $1.9bn and total Funds Under Administration (FUA) of $76.9bn (+13% YoY), continuing its trajectory and number one position on net flows for the quarter across the platform space. They also flagged an agreement with EQT (ASX: EQT) for a proposed large transition of up to $4bn. Putting the flows into context, Netwealth (ASX: NWL) recently reported quarterly net flows of $1.65bn, with NWL around 45% bigger than HUB. They said platform FUA guidance of $80-89bn by FY24 remains intact. Interestingly, they saw a strong uptick in advisers on the platform, up +56 in the quarter to 3,748 which we think about as a strong lead indicator of net flow momentum with a typical ~12-month onramp. All in all, a very good update from HUB and this remains a company we like (although we have sold recently at ~$27.66).

HUB24 (ASX: HUB)

Praemium (ASX: PPS) 72.5c

Praemium (ASX: PPS)

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