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

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

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