The Match Out: ASX fades into the afternoon and consumer stocks find some support

The local bourse was on the front foot initially, rallying ~0.5% early in the session before caution returned, seemingly the market has lost its mojo after the RBAs hike, failing to hold on to gains. The end result from the index perspective was a small fall as the ASX200 closed on the intraday lows, but there was significant volatility on the sector front. Consumer Discretionary recouped some of its recent struggles. Tech continued to outperform with another strong gain. While Energy was the weakest sector, Financials were the main drag on the index today as weaker GDP numbers weighed on the banks.

• The ASX 200 finished down -11pts/ -0.16% at 7118
• The Consumer Discretionary sector was best on the ground (+0.81%), followed by Tech (+0.57), Healthcare (+0.42%) and Utilities (+0.37%) being the sectors in the black today.
• Energy (-0.72%) was the worst of the sectors today with Financials (-0.66%) and Real Estate (-0.44%) the other notable detractors.
• Local GDP data came in below expectations. Q1 GDP was up 2.3% YoY, down from 2.7% and below the expected 2.4%.
• China data was also out today showing trade had fallen substantially. Exports were -7.5% in May, and Imports -4.5%.
• Estia (ASX: EHE) +13.33% hit 4-year highs after Bain increased their offer from $3/sh to $3.20/sh. The new offer is a 50% premium to the pre-takeover close for the aged care company.
• Beach Energy (ASX: BPT) -6.1% put out weak well testing results at their first test in the Perth Basin. There seems to be insufficient resource to flow gas with Trigg 1 to be abandoned.
• Champion Iron (ASX: CIA) -2.26% will be hit by lower production as a result of wildfires in Quebec, Canada. Rail operations have been offline but are expected to return in the near term while there has been no damage to their operations.
• Polynovo (ASX: PNV) +15.81% hit a record $7.2m in sales revenue in May for their advanced wound care devices.
• Iron Ore was up +0.5% in Asia today with a mixed bag for the major miners.
• Gold was flat in Asian trade, hanging around $US1964/oz, most gold stocks were marginally higher.
• Asian stocks were mixed, the best was the Hang Seng +1%, China +0.15%, while the weakest was Japan’s Nikkei +0.9%,
• US Futures are trading largely flat at our close.

ASX 200

Broker moves

• Sigma Healthcare Raised to Equal Weight at Morgan Stanley
• ASX Cut to Sell at UBS; PT A$59
• Sigma Healthcare Raised to Neutral at Citi
• Baby Bunting Cut to Equal-Weight at Morgan Stanley; PT A$1.65
• Stockland Cut to Reduce at CLSA; PT A$4.17
• ASX Cut to Neutral at Jarden Securities; PT A$64.85
• Webjet Raised to Overweight at Jarden Securities; PT A$8.15
• Baby Bunting Cut to Sell at Citi; PT A$1.10
• ASX Raised to Accumulate at CLSA; PT A$65.50
• Sigma Healthcare Raised to Buy at Shaw and Partners
• Domain Holdings Cut to Equal-Weight at Morgan Stanley; PT A$3.50

Major movers today

Have a great night,

The Market Matters team.

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