Path to normality announced (MQG)
WHAT MATTERED TODAY
The ASX returned to the winners circle today, trading higher from the get go piggybacking off strength in the cyclical miners thanks to strength across the commodities as well as buying in the consumer names. Despite the positive day, the local market continues to underperform the US with their futures trading relatively stronger throughout our session.
AMP rose on their AGM today – investors becoming more comfortable with the completion of the AMP Life sale due by the end of next month. The company did pull the sale of the NZ Wealth arm stating that initial offers were below expectations. Zip co (Z1P) jumped 14% on further strength in transaction volumes, helped by the shift in spending towards online. Flight Centre and Webjet saw their best in the afternoon with PM Scott Morrison announcing the path to domestic travel. Consumer discretionary sector was the best with Real Estate a close second as trade restriction guidelines were relaxed.
Overall, the ASX 200 closed up +26pts or +0.5% to 5391. Dow Futures are trading up 305pts/+1.28%.
ASX 200 Chart
ASX 200 Chart
CATCHING MY EYE;
Sectors this week:
Source: Bloomberg
Stocks this week:
Source: Bloomberg
Macquarie (MQG) +5.67%: reported their full year numbers today with some good commentary on the current financial landscape. Profit was down 12% as revenue fell faster than costs could be pared back. The bank side remains well capitalized with 12.2% while impairments rose above $900m in the second half, from $139m in the first. The fully year dividend was $4.30, down from $5.75 in FY19. Macquarie didn’t provide guidance for the year ahead, though talked to lower profits from asset sales and lower trading income.
Macquarie (MQG) Chart
BROKER MOVES;
· Mosaic Brands Cut to Market-Weight at Wilsons
· Insurance Australia Raised to Buy at Morningstar
· Goodman Group Cut to Sell at Morningstar
· Harvey Norman Raised to Buy at Goldman; PT A$3.85
· Cleanaway Raised to Add at Morgans Financial Limited; PT A$2.12
· Virgin Money UK GDRs Raised to Hold at Shaw and Partners
· Alumina Cut to Neutral at Credit Suisse; PT A$1.65
· Beacon Lighting Raised to Add at Morgans Financial Limited
OUR CALLS
No changes to the portfolios today.
Major Movers Today
Have a great Weekend all
Harry & the Market Matters Team
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