The Match Out: Stocks lower into the weekend, strength in Energy offset by weakness in real estate

James Gerrish

Market Matters

The ASX fell today with real-estate the biggest drag as the IMF highlighted issues with our hot local property market – their expectation for another +20% gain this year is a bullish one + their rhetoric comes on the back of both ANZ and CBA flagging similar concerns. House prices are clearly hot, even boat prices are as well and everything in between as low rates and a lack of overseas travel fuels demand.

  • The ASX 200 was trading down ~30pts /-0.42% to 7339 at 2.15pm – an early ‘Match Out’ from MM today
  • Energy stocks again strong today while they were the top sector for the week up nearly 5%, pipping the Utilities which ended +4% underpinned by the takeover of AusNet (AST)
  • Materials were weak again today and the biggest drag on the weak, although down 2.6% for the 5 days collectively is not a disaster
  • Gold was lower during Asian trade today ~$US1752 which was weighing on the gold stocks, most down more than 2%
  • Iron Ore Futures were trading higher, still the Iron Ore stocks were sluggish after a tough week
  • In Asia, Japan was trading +2% higher mid-afternoon, China was +0.53% while Hong Kong was flat
  • US Futures are flat

Sector Moves

Broker Moves

  • Sandfire Raised to Buy at Jefferies; PT A$8.80
  • Sandfire Cut to Neutral at Credit Suisse; PT A$6
  • GUD Holdings Raised to Overweight at Wilsons; PT A$11.80
  • Sandfire Raised to Outperform at RBC; PT A$7.50
  • Premier Investments Raised to Buy at Bell Potter; PT A$31.25

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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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