Market continues higher, but loses momentum
Another positive session for local stocks today, although with weaker momentum than the last few days and it now feels the mkt is getting somewhat tired. The resource names opened with a bang and continued on with it early however some profit taking came in towards the close. Still, BHP ended up +1.1% to $25.65, RIO added 0.60% to close at $65.03 while Oz Minerals (OZL), a stock we sold this morning closed down -1.47% at $8.04 after trading higher in early trade.
On the broader market today, the Real Estate stocks did best adding +0.65% while CSL dragged the Healthcare stocks into the red, down by -0.67% - an overall range of +/- 21 points, a high of 5799, a low of 5778 and a close of 5785, up +8pts or 0.15%.
ASX 200 Intra-Day Chart
ASX 200 Daily Chart
Macquarie (MQG); Had their AGM today and reconfirmed guidance for 2017/18 while they also said that Q1 was up on this time last year. Some interesting slides from the MQG presentation that highlights the change in this business over the past few years. Macquarie now has a higher proportion of annuity style businesses and you could argue that they should be trading on a higher P/E than the13x FY18 numbers they are currently on.
Macquarie (MQG) Daily Chart
Fortescue (FMG) – A good set of production numbers this morning from FMG with the company humming along at a 170mt run rate and downward pressure on costs continuing. Guidance was good and the only real issue is around price realisation given they have lower quality Ore. Still, a good set of numbers and clearly this business has more potential. A lot more. We like FMG, recently owned it from $4.66 and sold at $5.34. We will look for a better overall entry however being long this stock makes sense to us.
Fortescue Metals (FMG) Daily Chart
….and finally, some love coming back into the retailers with our latest purchase in the Income Portfolio doing well today – with HVN up +3.37% to close at $4.30
Harvey Norman (HVN) Daily Chart
Have a great night
The Market Matters Team
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