Materials & Insurance stocks inject life in the ASX
A good old fashion ‘risk on’ day for stocks with the sectors that we want to go up starting to play ball! The Material sector the standout with the likes of Fortescue Metals up by another +4.11% to close at $5.07 while BHP and RIO were also up strongly. The domestic insurance stocks were also strong following a ‘reserve release’ by IAG which helps earnings, and the stock traded to an all-time high, adding 6.41% to $6.97. More on this sector in tomorrow mornings note, however there is also a positive read through for Suncorp which would be benefitting from the same drivers and the biggest holding in the MM portfolio (12%) rallied by 2.86% to close at $15.11.
We had an overall range today of +/- 55 points, a high of 5757, a low of 5702 and a close of 5755, up +41pts or +0.73%.
ASX 200 Intra-Day Chart
ASX 200 Daily Chart
Iron Ore was strong overnight following a good Asian session yesterday and we’ve seen a similar trend play out today with FUTURES up by +2.93%. This provided good support for the miners today and we saw them open strongly before sustained buying played out for the session . We penned a report at the start of the week – available here for subscribers - titled Is the Resource Sector Finally Hotting up? Concluding that it was.
Fortescue Metals (FMG) Daily Chart
Rio Tinto (RIO) Daily Chart
We solved the world’s problems + covered the Material Stocks in this week’s video with Charlie Aitken, from AIM.
Sirtex (SRX) had a day in the sun after announcing a big write down of assets (non-cash) and a reduction of staff by 15%, however they reconfirmed the business was tracking within guidance. The stock put on +17% to close at $15.80.
Sirtex Medical (SRX) Weekly Chart
Interestingly Sirtex was the ‘Standout Chart of the Week’ in our weekend report on the 18th June. Here’s a recap from that report.
18/6/17 Standout technical chart (s) of the week
Sirtex has had a horrible run of late, especially for a healthcare stock, falling over 70% in ~18-months. However, with the tax loss selling probably now behind us SRX generated an excellent risk / reward buy signal last week. The company has experienced some disappointing trial results of late but we now believe the share price has basically zero optimism built into it. Hence any mildly positive trial results, or an increase in dose sales which is a strong possibility given its low market penetration, is likely to result in the stock rising significantly higher very quickly.
We are buyers of SRX around $13 targeting $18 - note a break back under $12 may see us exit this volatile stock.
Sirtex Medical (SRX) Weekly Chart – as at 18th June 2017
Have a great night
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.
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 28/06/2017. 5.00PM.
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