Oz Minerals – top of the charts!
Another strong session for stocks today with the reflation trade back on the books with Energy and Material stocks leading the charge. Interestingly enough, there was also some love for the Consumer Discretionary stocks after we covered the retailers today in the AM Report and also in the Income Report released around lunchtime today.
On the broader market today we had an overall range of +/- 44 points, a high of 5787, a low of 5743 and a close of 5776, up +50pts or +0.87%.
ASX 200 Intra-Day Chart
ASX 200 Daily Chart
Oz Minerals (OZL) led the charge today following a very good set of production numbers yesterday, which didn’t really get the positive attention they deserved. Anyway, today they did and Oz Minerals has now traded up close to our target price – and importantly, it’s been a very good recovery from the lows. We own OZL
Oz Minerals Daily Chart
Harvey Norman (HVN); Interesting today rallying strongly up by +2.97% to close at $4.15. As we wrote in the income Report earlier today, despite the negative headlines, HVN have actually been growing the top line consistently and in the most recent update in April, they showed like-for-like sales growth of 4.8% in Australia, which was weaker than markets had thought, but OK in its own right. The real threat as we see it from Amazon is more focussed on consumer electronics which are a part of HVN’s business, however the more bulky products like furniture and TVs, or higher value products like computers, or products that customers like to look and feel before purchasing are more in the defensive category, and HVN has a lot of them. Also worth noting that HVN is a property play, with around $2.30 per share underpinned by its property assets – which provides some good downside protection in the event we’ve underestimated the impact of Amazon. Clearly, this is a higher risk proposition however we think the risks are being overstated by the market. We Bought HVN in the Income Portfolio today
Harvey Norman (HVN) Daily Chart
Have a great night
The Market Matters Team
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