Stocks post strong gains to end the week
WHAT MATTERED TODAY
The market recovered a large proportion of yesterday’s losses to once again end strongly for the week. Less company specific news flow in the last few days as we trade along in the post reporting slumber. The Royal Commission is dominating the wires and this week it was the insurance stocks that felt most pain.
Overall, the index closed up +36 points or +0.60% today to 6165 – up 0.35% on the week
ASX 200 Chart
ASX 200 Chart
CATCHING OUR EYE
Broker Moves; -- Australian industrial stocks with greater exposure to heavy construction and infrastructure will perform better as residential construction softens, Morgan Stanley think in a note our yesterday. They believe residential construction activity will likely to soften after a “protracted peak” with east coast apartment market most at risk while detached housing is likely to outperform high density
RATING CHANGES;
• CYBG Upgraded to Hold at Investec
• Fonterra Upgraded to Neutral at First NZ Capital; PT NZ$5.09
Weekly Moves – Stocks & Sectors; On a sector level, Energy had a stormer thanks to a higher Oil price while some of the high flying IT stocks recovered from last week’s loses.
Sectors over the past Week
At a stock level, AfterPay (APT) was back in top spot while WhiteHaven Coal (WHC) also had a strong move. Interestingly, I was out to dinner last night with Tribecca as they look to raise money for a resource fund and Coal is a part of the market they like - they’re particularly bullish on NewHope (NHC)
Stock moves over the week
OUR CALLS
No changes the portfolios today.
Watch out for the weekend report. Have a great night,
James & the Market Matters Team
Disclosure
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