The Match Out: Tech rallies again, ASX up for second consecutive week

The easing of rhetoric around the US Debt Ceiling seems to have lifted markets again today with a broad rally for local shares carrying the index higher into the weekend. 70% of the local bourse closed higher with the Tech sector seeing the best of it for the second day in a row. Financials were the main support for the index while Utilities and Materials were the only sector to close lower. The index added 22pts/+0.31% this week for its second consecutive weekly gain.

• The ASX 200 finished up +42pts/ +0.59% at 7279
• The Tech sector was best on ground (+2.22%) while Fins(+1.54%) & Telco (+1.24%) were also strong.
• Utilities (-0.46%) and Materials (-0.24%) the only two sectors to close lower
• Coal stocks gave up the gains seen yesterday with the active contract falling -6% today. No news in the space but particularly volatile price action this week.
• AUB Group (ASX: AUB) +5.88% back online post a $150m capital raise, deciding to self-fund the UK-based Tysers instead of pursuing a JV after the business showed strong performance. Funds will boost capital flexibility and potential acquisitions.
• Austal (ASX: ASB) +26.02% announced a big contract win with the US Navy, first to design a patrol boat with the opportunity to build 7 steel-hulled boats for ~$US3.2b.
• Core Lithium (ASX: CXO) +1.81% confirmed a $50m capital investment will be made to complete early works at their next segment of the Finnis Lithium Project.
• Qantas (ASX: QAN) +1.09% are taking on another 4 aircraft under their lease agreement with Alliance (AQZ) to add capacity. Qantas have the option to take on an additional 8 aircraft under the deal.
• Dusk (ASX: DSK) -18.81% the candle retailer provided soft FY23 guidance, looking for a small fall in revenue but facing a ~35% drop in EBIT, guiding to $16-17m They said Mother’s Day trade was weak and consumers are getting cautious.
• Iron Ore was ~1% lower in Asia today with BHP, RIO and FMG all finishing marginally lower.
• Gold was up $US8 in Asia today but not recovering the weakness seen overnight.
• Asian stocks were mixed with Nikkei up +0.77% but Hong Kong and China bother lower.
• US Futures are all up, around +0.10%  

ASX 200

Weekly Sector Moves

Weekly Stock Moves

Broker Moves

• Xero Raised to Accumulate at CLSA; PT A$115
• Austal Raised to Overweight at JPMorgan; PT A$2.10
• Xero Cut to Hold at Morgans Financial Limited; PT A$101
• IDP Education Rated New Hold at Bell Potter; PT A$30.45
• Bank of Queensland Raised to Neutral at JPMorgan; PT A$5.70
• Beach Energy Raised to Buy at Citi; PT A$1.65

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