The Match Out: Weakness continues across equities, Energy shares struggle

The third consecutive session of pain for the local market, however, today’s move was felt across the region with Asian markets feeling the pinch. The index was down by more than 100pts late in the day before ticking up slightly on the close, though it wasn’t enough to stop the week from finishing at a new low for the last fortnight. 

Energy was a clear detractor to performance despite some weaker supply numbers out of the US tonight, instead, energy traders were focused on a slowing global economy while a surprise 50bps hike from the Bank of England overnight didn’t help with confidence. 

Two sectors managed a small gain today amongst the weakness, Utilities and Consumer Staples finishing in the black. The index fell -2.1% / -152pts in the week, the softest since September. That comes despite the market being up more than 100pts by Tuesday, meaning the last 3 sessions have seen a combined drop of 258pts, or around -3.5%.

• The ASX 200 finished down -96pts/ -1.34% at 7099
• The Utilities sector (+0.13%) was the best on ground today, only joined by Staples (+0.05%) as the only other gainer.
• Energy (-3.97%) was the weakest sector, followed by Real Estate (-2.75%). Another 3 sectors fell by more than 1%.
• Energy the standout on the downside with Woodside (ASX: WDS) -4.55%, Santos (ASX: STO) -4.33% and Beach Energy (ASX: BPT) -3.28%
• Coal stocks were down but not by as much, Whitehaven (ASX: WHC) off -0.89%
• APA Group (ASX: APA) +0.2% confirmed its half year distribution today at 29c, taking the FY payout to 55cps, in line with guidance
• AMP (ASX: AMP) talking down the outlook for the local economy today, saying the risk of recession is very high.
• Cochlear (ASX: COH) -3.52% fell after the UK competition regulator raised concerns over one part of their proposed acquisition of Oticon.
• Melbourne tips Sydney in World's Most Liveable City Rankings (but behind Vienna and Copenhagen)
• Metcash (ASX: MTS) -0.28% reports next week (26th June) with UBS flagging some likely challenges in Food, offset by good growth in Hardware. They lowered their PT to $4.75 maintaining the buy rec. we own Metcash (MTS) in the Income Portfolio.
• Iron Ore was down marginally in Asia, -0.62% with BHP, FMG and RIO all struggling
• Gold was marginally higher today, hanging around $US1915/oz
• Asian stocks dropped in line with our market. The Nikkei was down -1.45%, overshadowed by the Hang Seng (-1.80%).
• US Futures are pointing to soft start tonight, down around -0.4% each

ASX 200 Intraday

ASX 200 Daily

Sectors this week

Stocks this week

Broker Moves

• Beach Energy Rated New Overweight at Wilsons; PT A$2.01
• Strike Energy Rated New Overweight at Wilsons
• Flight Centre Raised to Hold at Ord Minnett; PT A$19.71
• Allkem Cut to Hold at HSBC; PT A$17.30
• Ingenia Cut to Sell at CLSA; PT A$3.76
• Johns Lyng Cut to Hold at Bell Potter; PT A$5.90
• Charter Hall Long WALE Cut to Neutral at Citi; PT A$4.40
• Austal Rated New Buy at Bell Potter; PT A$3.10
• GUD Holdings Rated New Buy at CLSA; PT A$11.80

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