The ASX drifts lower over the week, consolidating recent gains
WHAT MATTERED TODAY
Another day where the market looked tired in Australia relative to regional markets + US Futures edged higher throughout our session – still the ASX drifted lower / consolidated the recent explosive rally from the 5700 region up to 6150. Again, the market was dominated by a number of individual stock moves, CSL the highlight with another earnings upgrade while we had a number of more bullish broker notes underpinning strength in Challenger group Financial (CGF), while the Lithium sector was also hot - our position on Orocobre (ORE) putting on +2.54% to finish at $6.06.
Overall the ASX 200 lost 6points or -0.11% to close at 6087
ASX 200 Chart
ASX 200 Chart
CATCHING OUR EYE
Weekly Moves – Stocks & Sectors;
The ASX slipped this week down by around 0.47% , the Telcos the weakest link by a large quantum thanks to Telstra however there was obvious selling throughout the interest rate sensitive areas. CSL the main driver in the healthcare space on better earnings expectations while a Healthscope (HSO) remains in a takeover tussle.
Sector moves over the week
In terms of stocks, some of the market super stars had a tough week, Bellamy’s (BAL), A2 Milk (A2M) and Treasury Wines (TWE) were a few of the better loved stocks that came under pressure, while it’s interesting to see s retail stocks in the top 10 for the week. We covered the retail sector during the week – click here to view the note
Stock moves over the week
Broker calls; Macquarie put out a note the other day about sectors that do well as bond yields rise – topical given US 10 years have poked their head above 3.10%, concluding the top three sectors in terms of performance as interest rates go up are -- Materials, financials and energy sectors.
Elsewhere….
· Link Administration Upgraded to Buy at Citi; PT A$8.50
· NRW Holdings Rated New Buy at Citi; PT A$1.65
· Treasury Wine Upgraded to Neutral at Credit Suisse; PT A$15.65
· Bega Cheese Rated New Positive at Evans and Partners; PT A$7.68
· Galaxy Resources Cut to Neutral at Hartleys Ltd; PT A$3.19
OUR CALLS
No trades in the MM Portfolio’s today
Have a great night
James & the Market Matters Team
Disclosure
Market Matters may hold stocks mentioned in this report. Subscribers can view a full list of holdings on the website by clicking here. Positions are updated each Friday, or after the session when positions are traded.
Disclaimer
All figures contained from sources believed to be accurate. Market Matters does not make any representation of warranty as to the accuracy of the figures and disclaims any liability resulting from any inaccuracy. Prices as at 18/05/2018. 4.44PM
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