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

Make informed investment decisions

At Market Matters, we write a straight-talking, concise, twice-daily note about our experiences, the stocks we like, the stocks we don’t, the themes that you should be across and the risks as we see them. Click here for your free trial.

The Match Out will be available each day after the market close. Follow my profile to be notified when the latest report is live.

Livewire gives readers access to information and educational content provided by financial services professionals and companies ("Livewire Contributors"). Livewire does not operate under an Australian financial services licence and relies on the exemption available under section 911A(2)(eb) of the Corporations Act 2001 (Cth) in respect of any advice given. Any advice on this site is general in nature and does not take into consideration your objectives, financial situation or needs. Before making a decision please consider these and any relevant Product Disclosure Statement. Livewire has commercial relationships with some Livewire Contributors.

1 topic

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...

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.


Sign In or Join Free to comment