The Match Out: Subdued session as the Bankers enjoy a long weekend!

A subdued start to the week with the ASX edging lower, void of any real impetus in either direction. A bank holiday, no influential companies reporting and a softer night on Friday in the States saw local investors sit largely idle, with winners and losers split evenly across the main board.

• The ASX 200 finished down -16pts/ -0.22% at 7309
• The Real Estate sector was best on ground (+0.48% just edging out Consumer Discretionary (+0.56%).
• Healthcare (-1.08%) and Real-Estate (-1.24%) the weakest links.
• Bank holiday today so light volumes across the board – would have been a busy Monday at Thredbo!
• The latest Bloomberg survey of economists shows we could be in for one more rate hike before they start easing policy next year as inflation cools and economic growth slows to a crawl.
• Markets are less hawkish, with only 10bps of further tightening priced in, although this does reflect the range of forecasts in the mkt i.e. it’s a close call.
• To reiterate, we think rates have now peaked and recent moves in the bond market are starting to support this view.
• Estia Health (ASX: EHE) +8.45% hit its highest since September 2018, after it said Bain Capital has agreed to buy 100% of the shares in the company for $3.20/share cash
• Block (ASX: SQ2) -10.14% was hit on weaker results released on Friday night
• Pilbara Minerals (ASX: PLS) +3.81% had a resource upgrade and spoke at Diggers & Dealers today.
• Evans & Partners initiated on the Lithium sector, they share the UBS house view preferring IGO over PLS & MIN.
• Resmed (ASX: RMD) -4.23% fell again following weaker results on Friday, misses are certainly not be bought into strength away – tomorrow could well be the low, our observation over the years being to buy day 3 down in quality stocks that miss.
• Mesoblast (ASX: MSB) -12.77% still on the nose after falling 58% on Friday – back to the drawing board for them, which they should be used to by now!
• Iron Ore was ~2% lower in Asia today dragging Fortescue (ASX: FMG) -1.59% & RIO -0.78%
• Gold was up overnight to ~US$1942 before tracking down -US$6.50 in Asian trade today, settled $US1936 at our close.
• Asian stocks were mostly lower Hong Kong down -0.25%, Japan flat while China was off -0.81%
• US Futures are all up, around +0.40%
• James Hardie (ASX: JHX) -0.56% headlines reporting tomorrow, while Newcorp (ASX: NWS), Charter Hall Long WALE (ASX: CLW) & Coronado (ASX: CRN) are also out with numbers. Download the Market Matters Reporting Calendar Here
• Stocks we own in the International Equities Portfolio with results this week: Barrick Gold (GOLD US), Alibaba (BABA US), The Trade Desk (TTD US), Glencore (GLEN LN) & Yeti Holdings (YETI US).

ASX 200 Chart - Intraday

ASX 200 Chart - Daily

Broker Moves

• Pilbara Minerals Rated New Neutral at Evans & Partners Pty Ltd
• IGO Rated New Positive at Evans & Partners Pty Ltd; PT A$16.10
• Mineral Resources Rated New Neutral at Evans & Partners Pty Ltd
• City Chic Raised to Buy at Bell Potter; PT 70 Australian cents
• Judo Capital Cut to Neutral at Macquarie; PT A$1.50
• Collins Foods Rated New Buy at Citi; PT A$12.80
• ResMed GDRs Cut to Neutral at JPMorgan; PT A$32

Major Movers Today

Have a great night

The Market Matters Team

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