What mattered today

James Gerrish

The best of it was seen early on today with the market opening strong before sellers came over the top from around midday. A move of +20pts (0.33%) locally today is a weak effort given the +300pts (1.3%) we saw on the Dow overnight – still, a reasonable way to end the week. We continue to think that a pullback down to sub 5900 is the likely path for Aussie stocks into the start of December, before strong seasonality takes hold towards Christmas. A reasonably active week for the MM Portfolios with a repositioning to take advantage of higher interest rates within the income portfolio, while we took a nice profit in Aristocrat within the Platinum Portfolio.

6000 once again seems to be an issue for the market, as strength was sold into sending the market down 20points from its highs. CBA was one of the main detractors here, testing the $80 mark early before closing lower as sellers kicked in around 12.30pm. Interestingly, CBA was the only major bank to finish lower today, clearly the market expects the Royal Commission to hit CBA the hardest.

On the mkt today, Energy did best while most weakness was felt in the telco space - a range today of +/- 36 points, a high of 6011, a low of 5975 and a close of 5989, up 20pts or 0.33%.

ASX 200 Intra-Day Chart

ASX 200 Daily Chart

TOP MOVERS

1.Telstra - This morning Telstra downgraded FY18 numbers by ~6% on the back off delayed NBN one of payments after the announcement earlier this week that HFC line NBN connections will be reworked. A sizeable near term downgrade, however the payments are still built in to Telstra’s profits, and will flow through to the bottom line in FY18 and 20. On the back of some bad news, TLS only fell 0.3% to $3.42.

Telstra (TLS) Daily Chart

2. CYBG – Clydesdale continued its strong rally today, and despite finishing a long way from intra-day highs, was one of the best performing financials today. The developments around the intricacies of Brexit continue to be more positive than the market has expected, and as expectations around rising British interest rates, and so to the British Pound, trading conditions for CYB improve. Momentum in CYB remains, which we hold in the MM Platinum Portfolio, closing 1.8% higher today.

Clydesdale (CYB) Daily Chart

3. Getswift – GSW more than doubled this morning when news broke of a “global agreement” with Amazon. The details of the agreement are yet to be released, but despite the lack of detail, traders jumped into the stock without hesitation which was placed into a trading halt after trading for only 10 minutes this morning The logistics company is yet to finalize terms with Amazon, nonetheless this seems to be the buzz word in the market these days and speculation runs high for any company involved with the global conglomerate. GSW is one to watch, already jumping 1100% year to date.

Getswift (GSW) Daily Chart

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Have a great night James & The Market Matters Team

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Prices as at 01/12/2017


About this contributor

James Gerrish

James Gerrish

jgerrish@shawandpartners.com.au, Market Matters / Shaw and Partners

James is a Portfolio Manager within Shaw and Partners heading up a team that manages direct equity and option portfolios. He is also the Primary Contributor to Market Matters, a daily investment report that offers real market insight.

Expertise

ASX:TLS ASX:CYB ASX:GSW

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