The good times roll on… just! (IGO, CYB, QBE)
Sustained selling throughout the afternoon couldn’t stop the ASX200 from closing higher yet again. For the second day in a row the market climbed above 5900 points, however this proved to be a little too much to hold as many began to take profit. MM also took part in some profit taking today – more on our CYB sale later. Employment data was strong again today as unemployment reached the lowest level in 4 years, falling 0.2% for the month to 5.5%. Chinese GDP figures also came in inline today as numbers continue to back up the recent rally in equities. Tech stocks were the best performers today, jumping 1.32%, while materials followed the overnight lead to fall over 1%. Overall the market had a range of +/-25 points, a high of 5910, a low of 5884 and a close of 5896, up 5pts or 0.1%.
ASX200 Intraday Chart
ASX200 Daily Chart
CYBG Plc (CYB) – we took profits on our remaining 5% holding in CYB today after some positive price action in this morning’s trade. The sale at $5.27 represents a 12.4% profit for the position. This feels like a good time to sell as it approaches its technical target heading into the banks seasonally weak November period.
CYBG Plc (CYB) Daily Chart
Independence Group (IGO) – we flipped cash from our 5% holding in CYB straight into the nickel and gold miner IGO. IGO has had some strong price action recently, rallying from sub $3 in May to our purchase price of $4.27 today, however it looks set to go higher for many reasons. We are positive nickel, and IGO is heavily shorted, so any positive news or move in nickel leads to more aggressive price movement in the stock as shorts are forced to cover. Technically we are targeting a test and eventual move above its 12 month high of $5.
Independence Group (IGO) Daily Chart
QBE Insurance (QBE) outperformed today as it continues its sharp rally after falling below $10 earlier this month. JP Morgan upgraded its outlook on the stock this morning which generated some buying, forcing the stock up nearly 3% on the day to close at $10.91 – interestingly this is now above the JP Morgan target price but still well below market consensus.
QBE Insurance (QBE) Daily Chart
Have a great night
The Market Matters Team
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