Friday’s rally can’t overcome a soft week
WHAT MATTERED TODAY
Buyers won today with all sectors finishing in the green to round out the week – even tech ended higher despite the selloff seen overseas on Huawei supplier bans. Golds took a hit today, although materials heavyweights were up more than enough to offset. There was little news to move markets today so it tends to move in the direction of most pain which is up for now. Rates continuing to fall also forced money into equity markets.
Today’s move wasn’t quite enough to help the index into positive territory for the week, falling -14pts/-0.21% for the week.
Overall today, the ASX 200 closed up +38pts or +0.58% to 6716. Dow Futures are trading up +21 points or +0.08%
ASX 200 Chart
ASX 200 Chart
CATCHING OUR EYE:
Sectors this week: REITs took out top spot for the sectors this week as the chase for yield continues. Lendlease also helped the rally following a positive note penned by a fund manager was released mid-week. Communication Services were dragged by heavyweight TLS.
Stocks this week: AfterPay had a stellar week on the back of broker upgrades. Resources made up the bulk of the worst performers in the 5 sessions.
Broker Moves; UBS took a knife to their commodity stocks today as the quarterly mark to market from the analysts happen. With the spot price of most commodities trading below the forecasts, analysts are being forced to lower near term earnings forecasts.
- Western Areas Downgraded to Sell at UBS; PT A$2.90
- Alumina Downgraded to Sell at UBS; Price Target A$2.10
- Coronado Global GDRs Downgraded to Neutral at UBS; PT A$2.40
- Fortescue Downgraded to Sell at UBS; PT A$7.50
- OceanaGold Upgraded to Strong Buy at Raymond James; PT C$5.75
- South32 Downgraded to Neutral at UBS
OUR CALLS
No changes today
Watch out for the weekend report.
Harry & the Market Matters Team
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