The Match Out: Market takes a backward step to end a solid week

James Gerrish

Market Matters

A softer session to end a positive week for the ASX with the first full week of local reporting proving to be okay. Energy rallied back today, and so too did the telcos while property lost some of yesterday’s lustre.

  • The ASX 200 finished down -38pts/ -0.54% at 7036
  • The Energy sector was best on ground (+2.31%) while Communications (+0.29%) & Staples (+0.20%) ended higher.
  • Property (-2.01%) and IT (-1.80%) the weakest links.
  • For the week the ASX 200 put on 0.24%, with more clarity around future interest rate policy certainly helping.
  • Oz Minerals (OZL) +35.84% is the star for us following a takeover tilt from BHP while we also own St Barbara (SBM) -14.86% which fell on production numbers.
  • eCommerce stocks catching some attention today, a theme that has been building for a while after a woeful 12 months. Think Temple & Webster (TPW) +5.91% and even Adore Beauty (ABY) +5.17% finding some (rare) love.
  • TPG Telecom +2.79% also caught my eye today, this has been a quiet achiever in our Flagship Growth Portfolio – we still like it.
  • Aussie Broadband (ABB) +3.66% also looks interesting here – worth keeping on your hitlist.
  • IAG +1.08% higher on a solid FY22 update, showing better than expected insurance margin + guidance maintained.
  • Iron Ore was down ~1% in Asia
  • Gold was flat at ~US$1790
  • Asian stocks were higher, Hong Kong +0.44%, Japan +2.63% while China was up +0.07
  • US Futures are all up, around +0.20%  

ASX 200

Insurance Australia Group (IAG) $4.66

IAG +1.08%: the insurance company reported FY22 numbers today which was largely as expected given some numbers had been pre-reported. Earnings were light with Cash Net Profit After Tax (NPAT) at $213m well blow consensus at $239m. 

The 5c final dividend was also below market expectations however the stock rallied on an improving outlook. The positive was higher than expected reported insurance margin which improved substantially in the second half. 

They maintained Gross Written Premium (GWP) growth at mid-to-high single digits and reported insurance margins to grow to 14-16%. Earnings will also be supported by higher interest rates. A typical sort of IAG update, this year wasn’t good but next year will be better!

IAG

Sectors This Week

Source: Bloomberg

Stocks This Week

Source: Bloomberg

Broker Moves

  • MACA Cut to Hold at Canaccord; PT A$1.03
  • Arena REIT Cut to Neutral at Macquarie; PT A$4.74
  • Eagers Cut to Underperform at Jefferies; PT A$9.25

Major Movers Today

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.

2 topics

1 stock mentioned

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.

trending on livewire
Get the best of Livewire by signing up to our popular daily newsletter