ASX finally succumbs to some selling pressure! (STO, FXJ)
Some weakness / consolidation crept in today with the market being offered from mid-morning onwards, to close near the session lows. Overall, the Telcos did best, TPG (TPM) the standout adding +1.17% while Vocus was also in favour early on after reconfirming guidance and outlining a plan to relieve some of their debt issues – still, it seemed the news may have trickled out Friday given the strong rally on big volume. Buy the rumour, sell the fact seemingly at play today!! A range on the mkt today of +/- 33 points, a high of 5925, a low of 5892 and a close of 5894, off -13pts or -0.22%.
ASX 200 Intra-Day Chart
ASX 200 Daily Chart
Santos (STO) – we sold our 3% holding in the Growth Portfolio today taking a nice ~9% profit, looking to switch into Oz Minerals (OZL) if it trades below $8.25. The pure play energy stocks (like Santos) are volatile and we’re more comfortable taking short term positions within the sector. Looking more broadly the stock is now up +7.8% for the month which is BIG outperformance over the index which has added +3.7%. STO closed at $4.30, up +0.94%
Santos (STO) Daily Chart
Fairfax (FXJ) – Had a cracking session adding +3.35% - it’s biggest move since May on more than twice the average volume. FXJ is now up +15% this month as the company looks to spin off the Domain business at a time when REA Group (REA) has been trading strongly…Because it’s a demerger the only way to get stock in Domain is to BUY Fairfax now and clearly that has started to play out…
Fairfax (FXJ) Daily Chart
Have a great night
The Market Matters Team
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