WHAT MATTERED TODAY: The Aussie battler fares better than most

James Gerrish

The local market followed overnight leads lower today, however buying kicked in and we fared better than most international markets. Banks were weak, and materials were strong however volumes were light as market players take a 4 day weekend.

Overall today, a range of +/-26 points, a high of 6056, a low of 6029, close of 6050, down 26 pts, or -0.08%.

S&P/ASX 200 Intra-Day Chart

S&P/ASX 200 Daily Chart

CATCHING OUR EYE

1. IOOF (IFL) $10.91 / 2.06% ; IFL turned a weak morning into a solid day today, well outperforming the market after a poor open. IFL followed the market lower on the open, however a note from Morgan Stanley turned the fortunes around. A lot has been written about the fund manager this week, as analysts digest the ANZ Wealth merger and there appears to be a lot of disparity in the numbers, Bell Potter cut their target level yesterday quoting the issues with merging two underinvested businesses, however Morgan Stanley noted that the cost synergies and well-priced purchase of the ANZ wealth will guide IFL into a multiyear upgrade cycle. We are on Morgan Stanley’s side here, believing that IFL has completed a merger that gives them a platform to grow and gain market share in years to come.

IOOF Holdings (IFL) Daily Chart

2. Newcrest Mining (NCM) $23.36 / +2.23%; a holding we have been watching closely here, NCM rallied strongly as Gold pushed into territory not seen since August of 2016.. Heading to $US 1,360, Gold traders were supportive of the price following the comments from Davos overnight. We are continuing to watch gold closely, and may see this strength as an exit point in days/weeks to come.

Newcrest Mining (NCM) Daily Chart

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Have a great night

James & The Market Matters Team

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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:IFL ASX:NCM

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Michael Butche

Thanks for the update on IFL

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