Closing the week on a high (MQG)
WHAT MATTERED TODAY
The market marched rebounded strongly today – selling from yesterday’s note from UBS weighing on the big 4 continued early, before they were supported throughout the afternoon. CBA was the only bank to close lower today, while the other banks closed higher after being down between 1-2% at midday. Macquarie reached a new all-time high as the greenback and markets continued to rally. Healthcare performed strongly with some residual buying in HSO post the takeover bid from yesterday, and Nanosonics also receiving regulatory approval for their new infection prevention solutions. Dominoes was strong after the American listed business posted solid quarter results, noting the Asian business was a key driver of the growth.
Overall, a solid end to the shortened week, the index up 42pts or 0.72%, closing on the day’s highs at 5953.
ASX200 Chart
ASX200 Chart
Macquarie (MQG) Chart – new intraday and close highs for the bank, our $110 target is fast approaching.
For the week, Healthscope lead the way, while Metcash was also strong on the back of an sizable upgrade by Morgan Stanley yesterday. Aristocrat also managed to break into all-time highs this week – now up 16% in under three weeks. On the other side of the ledger, Boral fell sharply after a disappointing trading update on Tuesday,
Heathscope, and CSL which is up over 6% this week, helped healthcare topped the sectors for the first time in a while. Materials took a breather this week after a solid run over the last month. It felt like financials had two weeks in one, strong for the first couple of days before erasing all gains since – closing virtually unchanged over the week.
CATCHING OUR EYE
Broker Moves; Newcrest was the biggest beneficiary after they announced approval to use the old open pit mine as a tailings dam, allowing the gold miner to ramp up production to full capacity earlier than was expected. With two upgrades, NCM rallied over 3%. Credit Suisse were forced to eat their words and upgrade Healthscope following the takeover bid yesterday.
- Healthscope (HSO AU): Upgraded to Neutral at Credit Suisse; PT A$2.36; Downgraded to Hold at Morningstar
- Newcrest (NCM AU): Upgraded to Buy at Shaw and Partners; Price Target A$23; Upgraded to Neutral at Credit Suisse; PT A$19.95
- Think Childcare (TNK AU): Rated New Sector Perform at RBC; PT A$2
OUR CALLS
No changes to the portfolios today.
Have a great weekend – and watch out for the weekend report.
Harry & 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 27/04/2018. 4.30PM
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