What a week…markets cave in ~10%
WHAT MATTERED TODAY
Wow, what a week, it started on the back foot on Monday morning as the market came under significant pressure with the spread of the coronavirus outside of China, a void of buyers turned into a capitulation style move across the market today – simply all stocks were dumped as traders liquidated positions ahead of the weekend. For the week the ASX 200 dropped 9.77%, the total decline from the 7197 high set last Thursday has been -757pts / -10.5%, many stocks were down multiples of that number on the week, unsurprisingly headed by the travel stocks + the high beta IT style stocks which have taken a real bath. That said, there hasn’t really been anywhere to hide, gold stocks have even been hit hard with just 4 stocks out of the ASX 200 closing up on the week led by funeral provider Invocare, hardly a good omen!
It was end of month today and it’s hard to remember a more volatile start to a year, the ASX200 up +4.85% in January and now down -8.21% in February.
Overall, the ASX 200 closed down -216pts or -3.25% today to 6441, Dow Futures are trading down -277pts/-1.08%.
ASX 200 Chart
ASX 200 Chart
CATCHING MY EYE;
Simply a week of red, the aggressive nature of the selling was extreme, with the volatility index ticking up to 39 overnight.
Volatility Index (VIX) Chart
Sectors this week:
Stocks this week:
BROKER MOVES;
· AP Eagers Cut to Neutral at Macquarie; PT A$9.40
· AP Eagers Raised to Overweight at JPMorgan; PT A$10.50
· Ainsworth Game Raised to Outperform at Macquarie
· Bank of Queensland Raised to Buy at Bell Potter; PT A$8.30
· Bank of Queensland Raised to Equal-Weight at Morgan Stanley
· Bank of Queensland Raised to Hold at Shaw and Partners
· Ramsay Health Cut to Neutral at Citi; PT A$75
· Afterpay Cut to Neutral at Goldman; PT A$37.70
· NZ Refining Raised to Outperform at Jarden Securities
· PolyNovo Cut to Market-Weight at Wilsons; PT A$2.25
· Healius Cut to Hold at Morningstar; PT A$3.36
· Domain Holdings Raised to Hold at Morningstar
· Qube Raised to Hold at Morningstar
· Metcash Raised to Hold at Morningstar
· OZ Minerals Raised to Buy at Morningstar
· Link Administration Raised to Outperform at Credit Suisse
· Woolworths Group Raised to Hold at Shaw and Partners
· Auswide Bank Cut to Hold at Bell Potter; PT A$6.90
· Stanmore Coal Raised to Buy at Bell Potter; PT A$1.15
· Pendal Group Raised to Neutral at Evans & Partners Pty Ltd
OUR CALLS
No changes to the portfolios today.
Major Movers Today
Have a great Weekend all
James, Harry & the Market Matters Team
Disclosure
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