The Match Out: Buying into the afternoon takes ASX marginally higher, Asian markets largely closed for Luna New Year

James Gerrish

Market Matters

The bulls and bears played tug of war today in a whipsawing session to start the week. The index quickly rallied to a new high early on before giving up around 40 points within an hour of hitting the peak. 

Buyers stepped up from there, helping the ASX 200 to stem the losses and trade back into marginally positive territory. With most Asian markets closed for Lunar New Year celebrations, there was little in the way of news flow to control the index. Tech shares were the standout, boosted by a solid update in the BNPL space but also seeing a tailwind from falling rate expectations. Utilities were the main laggard as heavyweights in the sector struggled.

  • The ASX 200 finished up 5pts/ +0.07% at 7457
  • The Tech sector was best on the ground (+1.30%) while Energy (+0.34%) was also strong. Staples (+0.34%) put in a strong showing after being down more than -0.5% at midday
  • The laggards included Utilities (-0.65%) & Materials (-0.17%)
  • Sezzle (ASX: SZL) +37.61%, announced they were profitable for consecutive months after hitting $US1.8m net income in December. The peer group rallied strongly on the news. Zip (ZIP) is due to release its December Quarter update tomorrow.
  • Perpetual (ASX: PPT) +2.02%, completed the acquisition of (Pendal ASX: PDL) today. Perpetual said costs for the standalone business were tracking to the higher end of the previous guidance in an update out on Friday.
  • South32 (ASX: S32) +1.31%, out with their 2Q production update that was strong, with production up across all segments and costs coming in at the low end of guidance.
  • Iron Ore was closed in China today for Luna New Year
  • Asian stocks were largely closed as well. Japan’s Nikkei rallied 1.32%.
  • US Futures are all marginally weaker.

ASX 200 Chart

Broker Moves

  • Bendigo & Adelaide Cut to Neutral at UBS; PT A$10
  • Regis Healthcare Cut to Underperform at RBC; PT A$1.55
  • Westpac Cut to Underperform at Macquarie; PT A$23.50
  • CBA Cut to Underperform at Macquarie; PT A$94
  • Bank of Queensland Cut to Underperform at Macquarie; PT A$6.75
  • PWR Holdings Cut to Neutral at Evans & Partners Pty Ltd
  • SiteMinder Ltd Rated New Overweight at JPMorgan; PT A$4.40
  • South32 Cut to Hold at SBG Securities; PT A$4.87
  • BHP Cut to Hold at SBG Securities; PT A$51.02
  • Liontown Resources Raised to Overweight at JPMorgan; PT A$1.90
  • Estia Health Raised to Buy at Jefferies; PT A$2.35

Major Movers Today

Have a great 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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