The Match Out: ASX up again as stocks knock on the door of all-time highs

James Gerrish

Market Matters

A bullish day to end another positive week for equities taking the ASX 200 to within 1% of its all-time high. Strength across the tech stocks in the US overnight permeated into the local market again today, however what really caught or eye was CSL finally breaking out on a flow of broker upgrades while the Real-Estate sector is now heating up.

  • The ASX 200 finished up +46pts/ +0.62% at 7558
  • The Healthcare sector was best on ground (+2.51%) while Property (+2.37%) & Financials (+1.21%) were also strong.
  • Materials (-1.39%) and Utilities (-0.15%) the weakest links.
  • Comm Bank (ASX: CBA+1.29% hit another record high today at $111.43, the bulls expecting a strong result when the bank reports on Feb 15. We own, but wouldn’t be chasing this strength.
  • Pinnacle (ASX: PNI) +9.58% ripped higher today after a tough few sessions – Morgans turning bullish on the fund manager platform.
  • Gold stocks were weak with Evolution (EVN) -4% and Newcrest (NCM) -3% - as we suggested this morning, the $US bounced just +0.5% overnight but it was enough to see gold surrender almost $US50 of its recent gains illustrating our point perfectly that if the Greenback (DXY) can rally back towards the 105-107 area the Resources Sector could be in for a tough period (short term).
  • Centuria Capital (ASX: CNI+4.39% was strong today and the 4th best performer in the ASX 200 – we own across both our Income + Emerging Companies Portfolios and think the stock looks great for further gains, initially targeting ~$2.20.
  • IAG Insurance (ASX: IAG) -2.07% fell after downgrading margin guidance, they say insurance margins will be ~10% versus prior guidance of up to 16%.
  • Bega (ASX: BGA) -3.96% is changing CEO, with Pete Findlay stepping up to the plate with immediate effect – the cherry on a tough 12 months for BGA.
  • CSL Limited (ASX: CSL) + 3.03% broke out today on positive flow, accounting for ~30% of the advance by the ASX 200.
  • Iron Ore was ~2% lower in Asia, now trading $US125.tonne
  • Gold was down overnight to ~US$1913 before tracking up -US$3 in Asian trade today, settled $US1916 at our close.
  • Asian stocks were mixed, Hong Kong down -1.70%, Japan +0.33% while China was off -1.18%
  • US Futures are mostly lower.

ASX 200 Chart


Sectors this week – Source Bloomberg

Stocks this week – Source Bloomberg

Broker Moves

  • Pinnacle Investment Raised to Add at Morgans Financial Limited
  • Neuren Cut to Neutral at Evans & Partners Pty Ltd; PT A$8.70
  • Harvey Norman Cut to Underperform at Jefferies; PT A$3.60
  • Domino's Pizza Enterprises Cut to Underperform at Jefferies
  • Lynas Rated New Hold at Bell Potter; PT A$9.05
  • Pepper Money Rated New Neutral at Citi; PT A$1.60
  • Resimac Group Rated New Sell at Citi; PT A$1.20

Major Movers Today

Have a great night

The Market Matters Team


Make informed investment decisions

At Market Matters, we write a straight-talking, concise, twice daily note about our experiences, the stocks we like, the stocks we don’t, the themes that you should be across and the risks as we see them. Click here for your free trial.

The Match Out will be available each day after the market close. Follow my profile to be notified when the latest report is live.

........
Livewire gives readers access to information and educational content provided by financial services professionals and companies ("Livewire Contributors"). Livewire does not operate under an Australian financial services licence and relies on the exemption available under section 911A(2)(eb) of the Corporations Act 2001 (Cth) in respect of any advice given. Any advice on this site is general in nature and does not take into consideration your objectives, financial situation or needs. Before making a decision, please consider these and any relevant Product Disclosure Statement. Livewire has commercial relationships with some Livewire Contributors.

1 topic

James Gerrish
Portfolio Manager
Market Matters

James is the Lead Portfolio Manager & primary author at Market Matters, a digital advice & investment platform with over 2500 members that offers real market intel & portfolios open for investment. He is also a Senior Portfolio Manager at Shaw and...

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.

Comments

Sign In or Join Free to comment