The Match Out: Equities head higher into the weekend, China stimulus talks drive rally

James Gerrish

Market Matters

While the market closed in the green today, the ASX closed well off its highs, as selling picked up into the close. Resources were strong again today on the back of Chinese stimulus plans with the Asian superpower talking up a $300 billion package to help support manufacturing and construction. The unloved tech sector also got a boost into the weekend, despite bond yields tracking higher. Telcos were the worst off as investors preferred the risk-on trade but it was the financials that held the index back the index the most.

  • The ASX 200 finished up +30pts/ +0.45% at 6678.
  • The Energy sector was the best on the ground again (+2.11%) while Materials (+1.23%) & Utilities (+1.08%) were also strong.
  • Telcos (-0.58%), Financials (-0.21%) and staples (-0.05%) were the three sectors in the red today.
  • The oil market was stronger again today though is likely to close out the week lower given its weakness on the back of global growth fears.
  • Magellan (ASX: MFG), -3.02%, announced further FUM outflows in June with FUM falling to $61.3b. They have had a total of $5.2b since the end of March, along with a further $3.5b drag on negative performance.
  • St Barbara (ASX: SBM) +9.64%, ripped after a strong fourth quarter production number. They produced 86koz of gold in the last quarter and nearly hit the midpoint of guidance. More detail, as well as costs and FY23 guidance, will be provided in the 4th quarter update later in the month.
  • Iron Ore was ~0.7% higher in Asia helping the bulk miners higher – BHP added 0.72%
  • Gold was marginally lower overnight but higher in Asian trade today, currently +$US2.50/0.15% to ~US$1742
  • Asian stocks were okay Hong Kong up 0.18%, Japan +0.10%
  • US Futures are all down, around -0.50%

ASX 200 chart

Stocks this week

Sectors this week

Broker moves

  • Beach Energy Rated New Neutral at Barrenjoey; PT A$2.02
  • Cooper Energy Rated New Underweight at Barrenjoey
  • Carnarvon Energy Ltd Rated New Overweight at Barrenjoey
  • Karoon Energy Rated New Overweight at Barrenjoey; PT A$2.27
  • Orora Cut to Hold at Jefferies; PT A$3.80
  • Pro Medicus Raised to Neutral at Goldman; PT A$42.60

Major movers today

Have a great weekend,

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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