The Match Out: Energy hit on growth concerns, ASX at 2-month lows.

The daily Match Out for Tuesday 14 March with Market Matters' James Gerrish.
James Gerrish

Market Matters

Risk assets continued their sell off today with broad-based weakness seen across the ASX. The index fell below the psychological 7000 level for the first time since January 4, though it showed some fight to close marginally above that level in the end. Energy felt the brunt of the pain today as the global growth concerns were caught up in the bank contagion fears. Tech was also a surprising underperformer given the relative strength of the Nasdaq overnight and in US Futures during our session today. The relative safety of Utilities and Real Estate was preferred, though both sectors still closed lower.
  • The ASX 200 finished down -99pts/ -1.41% at 7008
  • The Real Estate sector was best on ground (-0.27%), closely followed by the Utilities (-0.29%)
  • Tech was the weakest sector (-3.44%) while Energy was also in the firing line (-2.78%). 5 other sectors fell by more than 1%
  • Kelsian (ASX: KLS) was in a trading halt today as they look to purchase a charter bus company, All Aboard America!, for $500m.
  • Neuren Pharmaceutical (ASX: NEU) +9.68%, now up 30% in 2 days following FDA approval of their Rett syndrome treatment.
  • Energy stocks were hammered as crude trades down ~8% in a week. Traders aren’t just concerned about the impact of SIVB on the financials market.
  • We stepped up to add to our banking exposure in to weakness today with the view that this event is very much a company-specific issue and unlikely to cause a major rift in financial markets. We have already see regulators talk to supporting deposits in the US to prop up the system in an attempt to build confidence.
  • Iron Ore was ~0.43% higher in Asia today, though it was little help for the miners today with BHP still down -1.75%
  • Gold was once again the place to be on the equity front, though it gave back some strength in Asian trade today following its +$US30 move overnight to fall $US10/-0.53%. Ramelius (ASX: RMS) once again the top performer in the space, up +5.83%.
  • Asian stocks were struggled, Nikkei -2.37% while China and the Hang Seng are currently down ~2%.
  • US Futures are once again the in the green, S&P and Nasdaq Futures both up 0.3%.


Market Matters In the Media

The Market Matters Research Lead Shawn Hickman joined Ausbiz this morning for a timely chat about the Silicon Valley Bank’s issues and it’s impact on the local banking sector.

Broker Moves

  • Chalice Mining (ASX: CHN) Rated New Neutral at Barrenjoey; PT A$6
  • Bravura (ASX: BVSCut to Neutral at Jarden Securities
  • Cedar Woods (ASX: CWP) Reinstated Buy at Moelis & Company; PT A$5.93
  • Neuren (ASX: NEU) Raised to Speculative Buy at Evans & Partners Pty Ltd

Major movers today

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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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