The Match Out: Stocks edge higher, IT has a rare day in the sun

The ASX continued to recover today following the mid-week dip although the ASX 200 is still down 1.81% for the month of December which doesn’t correlate well with the idea of a Christmas Rally. If the market stays down, it will be only the 8^th time that has occurred in the past 29 years with the average gain in December for that period being +1.85% - a bit of work to do from here! A mixed bag from a sector perspective today with Utilities the standout while IT also played a solid supporting role. The only sector in the red was Materials.

• The S&P/ASX 200 added +37 points / +0.53% to close at 7152
• Utilities (+1.59%), IT (+2.78%) & Healthcare (+1.33%) the standouts on the upside.
• Materials (-0.18%) & Energy (+0.03%) lagged the broader advance.
• The  BHP / OZL deal has become binding, subject to OZL shareholder approval in March/April 2023. The $28.25 price tag means BHP is forking out $9.6bn for OZL.
• 29Metals ( 29M) -22.1% had a tough day at the office after saying it sees copper and zinc production to be at the low end of guidance. This was a well-liked / well-owned junior hence the big share price reaction & fairly quick and savage response from most analysts.
• Domain Holdings (DHG) +5.47% & REA Group (REA) +2.29% bounced back today after a tough week thanks to DHG’s downgrade on Tuesday.
• Gold & Coal stocks drifted lower after a good run – we discussed our thoughts towards Gold, Coal & Lithium this morning
• G8 Education (ASX: GEM) +4.61% continues to be a quiet achiever following their recent trading update – we are long GEM in our Income Portfolio.
• Seek (ASX: SEK) +3.52% was another of our holdings that popped today – it’s been slightly frustrating since we purchased 3 months ago.
• Iron Ore was higher in Asia up +1%, Coal out of Newcastle was lower.
• Gold was up US$5 during our time zone trading $US1818/oz at our close.
• Asian stocks were up, Hang Seng was very strong adding +2.43%, the Nikkei in Japan added +0.50%, while China advanced +0.52%
• US Futures are all up circa 0.30%.

ASX 200 Chart

Broker Moves

• 29Metals Cut to Underperform at Macquarie; PT A$1.50
• Elders Rated New Buy at Moelis & Company; PT A$12.04
• F&P Healthcare Rated New Underperform at RBC; PT NZ$19
• Mineral Resources Rated New Add at Morgans Financial Limited
• Capitol Health Rated New Buy at Bell Potter

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