Aussie market ticks higher ahead of US holiday (ABC)
WHAT MATTERED TODAY
The local market was quick out of the gates today, but the initial sugar hit wore off before lunch as the bulls went hungry into the afternoon – though there was a flurry of buyers in the last half hour before the market closed. Australian Retail sales for May came in better than expected at +16.9% MoM but that was pretty well flagged, plus of course what’s more important is where they would head next – May saw the start of reopening and a flurry of stimulus money hitting bank accounts helping boost trade. However retailers won’t get to see that same boost in the coming months and with case numbers on the rise the backdrop is not as rosy going forward.
Banks were the main weight on the market as the session rolled on coming off their highs, while communications & healthcare supported the index. Telstra was a big gainer with brokers running the ruler over price hikes on post-paid plans as the telco re-worked how they would charge customers to access 5G as the network is built out. The US market is closed tonight for the 4th of July holiday.
Overall, the ASX 200 closed up +25pts or 0.42% to 6057. Dow Futures are trading up +30pts/+0.12%.
ASX 200 Chart
ASX 200 Chart
CATCHING MY EYE;
Adbri Limited (ABC) -25.4%: formerly Adelaide Brighton, tanked today on Alcoa electing not to renew a supply contract up for expiry in 12 months’ time. The lime supply contract was worth around $70m in annual revenue for Adbri, though there are no material impacts to revenue until after the current contract rolls off next year while management is looking to replace the lost business in the meantime. The contract was only around 5% of the group’s revenue but it was a big hit to the share price today.
Adbri Limited (ABC) Chart
Sectors this week
Source: Bloomberg
Stocks this week
Source: Bloomberg
BROKER MOVES;
· Kazia Therapeutics Rated New Speculative Buy at Bell Potter
· Brickworks Rated New Buy at UBS; PT A$17.10
· NextDC Reinstated Neutral at Credit Suisse; PT A$11.35
· Bluescope Cut to Underweight at Morgan Stanley; PT A$10
· Charter Hall Group Cut to Sell at Morningstar
· Transurban Raised to Overweight at JPMorgan; PT A$16
· Netwealth Cut to Underperform at Credit Suisse; PT A$8.30
· Hub24 Cut to Neutral at Credit Suisse; PT A$12
OUR CALLS
No changes today
Major Movers Today
Have a great weekend,
Harry and the Market Matters team
Disclosure
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