The Match Out: Market snaps three-week losing streak, Tech finds some friends, REA Group (REA) post in line 1H

James Gerrish

Market Matters

Pre-market futures were indicating a difficult end to the week, however some better than expected results after the US market closed meant early selling was subdued. Buyers won the rest of the session and a demand in the match helped the index finish on the intra-day high. Today’s gain helped the index post its best week since August last year, snapping 3 weeks of losses.

  • The ASX 200 finished up 42pts / +0.60% to close at 7120.
  • Telcos were the only sector to finish lower on the day, only just missing on getting into the black with a -0.1%. Industrials were the stand out (+1.15%) but the Tech and Energy sectors were also better than 1% up today.
  • Snapchat (SNAP US) saw revenue growth of 47% for the quarter and swung into its maiden quarterly profit since listing. The result out this morning helped ease investor concerns, particularly in Tech stocks which had sold off this week on the back of Meta’s (FB US) results miss. SNAP US was up more than 50% in after-hours trading.
  • REA Group (ASX:REA) announced their half-year report. Revenue grew 36% and earnings were up 28%, bang in line with consensus expectations. They did warn of a slow down in the 2H with a Federal Election in the works however any impact is likely to be short term.
  • News Corp (ASX:NWS) was also out with their half-yearly which looked a beat. Their 61% stake in REA helped, however growth in their subscription streaming services Binge and Kayo were the main contributors to the beat.
  • Boral (ASX:BLD) went ex-capital return of $2.65/sh today, paying back around 40% of the share’s value to holders.
  • Gold is marginally higher in Asian trade at $1,806/oz.
  • Asian markets were also stronger today. The Nikkei was trading up 0.5% at our close. The Hang Seng was more than 2% better, coming back online after a 3-day break for the Lunar New Year celebrations.
  • US Futures pointing to a strong finish to the week. The S&P Futures are 1.25% higher, Nasdaq +2.1%.

ASX 200 

Sectors this week

Source: Bloomberg

Stocks this week

Source: Bloomberg

Broker Moves

  • Li-S Energy Rated New Speculative Buy at Blue Ocean; PT A$2.30
  • Janus Henderson GDRs Cut to Neutral at Macquarie; PT A$52
  • Westpac Raised to Neutral at Jarden Securities; PT A$23.50
  • AUB Group Rated New Overweight at Jarden Securities; PT A$25.90
  • Steadfast Rated New Overweight at Jarden Securities; PT A$5.20
  • Centuria Office REIT Raised to Outperform at Credit Suisse
  • BHP Rated New Hold at DZ Bank; PT A$48.20
  • BHP Resumed Neutral at Citi; PT 2,250 pence
  • Westpac Raised to Buy at Bell Potter; PT A$24

Major Movers Today

Have a great weekend

James, Harry and 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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