The Match Out: Resources rally supports index, ASX has its best week in a year, Megaport (MP1) Chairman sells again

James Gerrish

Market Matters

The local bourse was choppy early on today before finding its feet around lunch to rally into the weekend, though some risk was taken off near the close before a strong match saw it close on the day’s high. Strength across the commodity index overnight helped support the local market while the rebound in tech continued. Equities were unfazed by the Bank of England hiking rates to 0.75%, as was expected, tracking higher on the back of China’s support for a stronger market.

  • The ASX 200 finished up +43pts/ +0.60% at 7294
  • Crude oil moved back over $US100/bbl helped support local Energy stocks with the sector leading the index today. Materials were also well bid with base metals and bulk commodities generally higher overnight and throughout our session.
  • Consumer focussed stocks were a weaker despite the index support. Consumer Discretionary sector fell -0.82% on a solid day
  • Today’s move rounds out the best week in the local markets in more than 12 months adding 230pts/+3.27%. A strong bounce in the financials sector was key to the index move though Tech was the best performer despite the Fed hiking rates.
  • Megaport (MP1) Chairman let another 3m shares go, this time crossing the $39m block at $13.05/sh. Bevan Slattery has been a regular seller of shares over recent years as he sizes up “ongoing investment opportunities.” While there was no indication of poor performance in the business, it will mean that institutions that were likely buyers in the company may have the fill for now. He has confirmed he has no intention of selling any more of his remaining 5.11% stake for at least 6 months. Shares finished -8.06% to $13
  • Abacus (ABP) completed a quick $200m at institutional placement overnight as they look to replenish their balance sheet ahead off acquisition opportunities in self-storage and quality office exposure. They reiterated distribution guidance of at least 18cpu over the full year after paying 8.75cpu in the first half. Shares finished just below the $3.38 offer price, down -5.9% to $3.35
  • Star Group (SGR) confirmed media reports of a review into their operations, though didn’t comment any further. Shares fell -3.63% on the back of the news.
  • Iron Ore was ~3% higher in Asia today.
  • Gold was up fell around 0.5%/-$US9 today to US$1934
  • Asian stocks were mixed, Japan’s Nikkei the standout up 0.3%, Hong Kong down -2.4%
  • US Futures are all lower, S&P500 -0.6% and the Nasdaq futures -0.8%

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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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