Big 4 Bounce
WHAT MATTERED TODAY
The banks turned a corner today with 3 out of the big 4 closing more than 6% higher – WBC the standout putting on 7.39% today, while CBA lagged. Reforms to the credit act that were announced from Canberra today caused the stir with the ASIC cut from the enforcement of responsible lending rules which will now fall back on to the more accommodating shoulders of APRA. Recent years had seen banks tighten controls around credit with ASIC’s enforcement of the code restricting consumers access to credit. Today’s changes are expected to open the floodgates back to credit which had stagnated even prior to COVID. It’s also an easy way to stimulate the economy without the government footing the bill.
Elsewhere it was Whitehaven Coal (WHC) topping the leader boards today as coal & the energy deck continues to catch a bid – energy and materials took out silver and bronze respectively today. On the flipside consumer names underperformed the broader move despite the quasi-stimulus measure with the market more concerned about what a return to ‘normality’ would mean for supermarkets and the work-from-home trade in some of the discretionary names.
Overall, the ASX 200 closed up 88pts / +1.51% to 5964 today. US Futures are lower, with Dow Futures off -130pts/-0.47%.
ASX 200 Chart
ASX 200 Chart
CATHCING MY EYE
Sectors this week
Stocks this week
BROKER MOVES
- Brickworks Cut to Sell at Morningstar; PT A$16.20
- Soul Pattinson Cut to Sell at Morningstar; PT A$18.70
- Brickworks Cut to Neutral at Macquarie; PT A$18.80
- Imdex Raised to Buy at Canaccord; PT A$1.58
- Newcrest Raised to Hold at Morningstar
- Westpac Raised to Outperform at CLSA; PT A$18
- Brickworks Raised to Add at Morgans Financial Limited
- United Malt Rated New Neutral at Credit Suisse; PT A$4.02
- PolyNovo Rated New Hold at Bell Potter; PT A$2.40
OUR CALLS
No changes today
Have a great night
James, Harry and the Market Matters team
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