ASX gives up a solid start
WHAT MATTERED TODAY
Pre-market signs were pointing to a strong day, but it turned out to be pretty underwhelming with the index turning negative by 12.30pm, failing to take advantage of the overnight lead and a futures market 1% above yesterday’s close. The afternoon was a struggle to just stay near flat on the day with some choppy action from the index into the close. The big 4 was front and centre of the intraday selling – CBA traded up more than 1% in the morning, and down more than -1% in the afternoon, closing closer to the low of the day.
The miners & energy names had no such misfortune, both sectors finished more than 2% higher on the back of some supportive moves in the underlying commodity prices. REITs continue to feel selling as speculation around the longevity of social distancing remains. Many large retailers have publically stated they will not pay rent while stores are closed, encouraging the little guys to join the fight as well. One economist I read today suggested social distancing laws were unlikely to be relaxed until September despite Australia appearing to have the pandemic under control. In general, today’s market underperformance was driven by that speculation as traders come to grips with the fact that economic activity may not rebound swiftly even if there are no infections given many measure may remain in place.
Overall, the ASX 200 fell -4pts / -0.08% today to close at 5217 - Dow Futures are trading up 64pts/0.27%.
ASX 200 Chart
ASX 200 Chart
CATCHING MY EYE:
Direct from the Desk:
BROKER MOVES:
· Emeco Raised to Buy at Goldman; PT A$1.30
· Newcrest Raised to Neutral at CIBC; PT A$28
· Challenger Cut to Neutral at Citi; PT A$4.60
· Ramsay Health Cut to Neutral at Citi; PT A$69
· CSR Raised to Outperform at Macquarie; PT A$4.10
· PolyNovo Raised to Overweight at Wilsons; PT A$2.25
· Ramsay Health Cut to Underweight at Wilsons; PT A$47
· Nanosonics Raised to Market-Weight at Wilsons; PT A$4.50
· G8 Education Cut to Market-Weight at Wilsons; PT A$1.15
· Metcash Raised to Hold at Morningstar
· Myer Cut to Neutral at JPMorgan; PT 20 Australian cents
OUR CALLS
No changes to portfolios today.
Major Movers Today
Have a great night
James, Harry & the Market Matters Team
Disclosure
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