The Match Out: Flat day for the Aussie market, mixed moves under the hood, Financials rally into the weekend.

James Gerrish

Market Matters

A flat day on the surface but there were plenty of moving parts underneath seemingly with little rhyme or reason to much of the daily swings. The banks were strong, offsetting weakness in telcos and energy. Tech was also though it was hardly a broad-based rally within the sector. There seemed be a short squeeze focus today with the beaten down names rallying without news.

  • The ASX 200 finished down -2pts/ -0.04% at 6791
  • The Real Estate sector was the standout today, rising 0.9%. Financials (+0.56%) and Tech (+0.15%) were the only other sectors in the green today
  • Communication Services (-1.32%) was the laggard. Energy (-1.19%) and Utilities (-1.18%) were also soft being the only three sectors to close more than 1% lower
  • The index saw its best week since March, adding 185pts/+2.81%.
  • Insurance Australia Group (IAG), -1.41%, fell today after releasing preliminary FY22 results. FY23 guidance was strong, though NPAT for the last financial year were well below expectations, coming in at $347m, below the $380m expected.
  • Coronado (CRN) -8.13%, 2Q update was poor. Costs were up and production down 10% on the previous quarter though they announced a record quarterly and half-year revenue number thanks to a 20% climb in prices. This was marred by guiding full-year production lower, and costs higher on inflation, wet weather and labour costs.
  • Woodside (WDS) -0.55%, fell but outperformed peers after clarifying some comments made in their quarterly update yesterday. Analysts had interpreted their production figures incorrectly after they changed methods post the BHP Petroleum merger.
  • Ioneer (INR) +5.05%, the lithium stock rallied thanks to a binding offtake with Ford for 7ktpa of lithium carbonate, or a third of production at ioneer’s Nevada operations.
  • Iron Ore was ~2.5% higher in Asia today. Fortescue (FMG) was the greatest beneficiary, rallying +0.73%
  • Gold was flat today to US$1717. A mixed day for gold stocks, Northern Star (NST) rallied more than 2% but Newcrest (NCM) fell
  • Asian stocks were mixed, Japan’s Nikkei rallied +0.37%, Hong Kong down -0.13%
  • US Futures are all lower, S&P500 -0.42% and the Nasdaq futures -0.80%

ASX 200 Chart

Sectors this week

Stocks this week

Broker Moves

  • Propel Funeral Partners Reinstated Buy at Bell Potter; PT A$5.40
  • Home Consortium Rated New Equal-Weight at Morgan Stanley
  • HomeCo Daily Needs REIT Rated New Overweight at Morgan Stanley
  • Alumina Raised to Buy at Citi; PT A$1.60
  • Orora Rated New Underweight at Barrenjoey; PT A$3.20
  • SCA Property Cut to Hold at Jefferies; PT A$2.94
  • HomeCo Daily Needs REIT Cut to Hold at Jefferies; PT A$1.49
  • Genworth Australia Rated New Hold at Jefferies; PT A$2.77
  • Pro Medicus Cut to Sector Perform at RBC; PT A$52
  • Hansen Tech Cut to Sector Perform at RBC; PT A$5.80

Enjoy your 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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