The Match Out: Market up, Tech rallies 6% in a day!

James Gerrish

Market Matters

It was certainly a ‘risk on’ session today with the Small Ordinaries (+3.20%) creaming the large caps (+0.77%) while drilling down into the relative sector performances also highlighted that skew, Technology the standout while other interest rate-sensitive sectors like real-estate did well. A good way to end a reasonable week for the market, while at Market Matters we also went live with a new version of our website, which brings in market data, advanced charting, company financials and broker forecasts, into what we think is a very user-friendly platform.

  • The S&P/ASX 200 added +50 points / +0.77% to close at 6577.
  • IT (+6.00%), Communications (+2.66%) and Real-Estate +2.48% all stormed higher today, a +6% gain from IT is the elusive move we’ve been targeting!
  • Energy (-1.45%) and Materials (-0.14%%) were the only sectors to close in the red, although there was a big comeback from some of the beaten-up Lithium names.
  • IT was the clear standout with the likes of Xero (XRO) +7.50%, Wisetech (WTC) +8.39% and Altium (ALU) +6.70% however it was Life 360 (360) that bounced hardest up 25%.
  • The Crown takeover is now completing with the company electing to redeem the Hybrids (CWNHB) at $102.75 which we own.
  • Lithium stocks rebounded today, Lake Resources (LKE) +15% with their CEO on the front foot holding a Webinar today for all and sundry.
  • Oil held at around $104 a barrel although Energy stocks still saw selling – bar Uranium where Paladin (PDN) +11.21% had a good day.
  • The Market Matters Portfolio’s ended the week well, the Emerging Companies Portfolio has been a struggle in recent times however a bounce of more than 6% today is pleasing.
  • Both other domestic Portfolio’s, being the Growth & the Income also had some strong winners today.
  • We toyed with adding to our IGO position this morning and buying another stock, slightly increasing the beta of the growth portfolio however we held firm for now – we’ll revisit Monday.
  • Morgan Stanley actually cut their PT on IGO this morning from $11.35 to $10.65 – the stock closed up +1.82% at $10.07
  • Iron ore futures were up 1.65% today in Asia.
  • Gold was flat at US$1824/oz at our close.
  • Asian markets were up, the Nikkei in Japan +1.37%, Hong Kong stocks rallied +1.8% while China was up 1.3%
  • US Futures are higher, Dow +156pts, Nasdaq +0.60%.

ASX 200 Chart

Crown Hybrids (CWNHB) $101.85

CWNHB +1.99%: As part of the Blackstone takeover of Crown which is now completing, Crown today announced the redemption of the CWNHB at the price of $102.75 which represents the $100 face value plus deferred interest payments. The outcome is what we expected and a good result for the Market Matters Income Portfolio having bought the notes below par a year ago. We will now look to redeploy the 4% of the portfolio allocation held in this position.

Sectors this week

Stocks this week

Broker Moves

  • ANZ Bank Cut to Neutral at Macquarie; PT A$23.50
  • Appen Raised to Neutral at Macquarie; PT A$5.70
  • Bank of Queensland Raised to Outperform at Macquarie; PT A$8
  • Bendigo & Adelaide Cut to Neutral at Macquarie; PT A$10
  • Mincor Raised to Buy at Bell Potter; PT A$2
  • St Barbara Raised to Outperform at RBC; PT A$1.25
  • Mincor Raised to Buy at Shaw and Partners; PT A$2.05

Major Movers Today

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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