ASX set to round out the strongest quarter since 2009 on a high, testing 6200
**An early afternoon note today as James and I are in a presentation this afternoon. Prices are as at 2.40PM. Have a great weekend and keep an eye out for the Weekend Report on Sunday – Harry**
WHAT MATTERED TODAY
Despite a soft lead overnight, and futures trading flat before the open, the local market has again managed to charge higher on intraday buying for the third session in a row. Asian markets stormed ahead led by China’s consumer market spurred on from reasonable news out of the trade talks with the US and the Chinese government signalling further stimulus. The Shanghai index was up over 20% for the quarter – this is compared to the local market which is up around 11% for the quarter, still our best effort in quarter since the September ‘09 when ASX rallied out of the post-recession doldrums.
Overall today, the index is currently trading up +32pts or +0.53% to 6206. Dow Futures are trading up +66 points / 0.26%.
ASX 200 Chart
ASX 200 Chart
CATCHING OUR EYE;
Not a great deal of company news today, however Fortescue (FMG) is catching our eye as it once again sets 24 month highs with a crack over $7. Currently trading 3% higher alongside reasonable gains from the other iron ore names thanks to more commentary around Vale’s supply outage. On a conference call yesterday, Vale’s management suggested a best case scenario would see 75mt out of the market this year, and around 40mtcurtailed through the next few years.
Sectors this week;
Stocks this week;
Broker Moves;
- Independence Group Downgraded to Neutral at UBS; PT A$5
- Sandfire Upgraded to Neutral at UBS; PT A$7
- Origin Energy Downgraded to Neutral at Citi; PT A$7.42
- Oil Search Downgraded to Sell at Citi; PT A$7.64
- Woodside Downgraded to Sell at Citi; PT A$31.12
- Senex Rated New Buy at Bell Potter; PT A$0.47
- Redbubble Rated New Outperform at RBC; PT A$1.40
- Austal Rated New Buy at Citi; PT A$2.76
- nib Upgraded to Neutral at Goldman; PT A$5.48
- Orica Downgraded to Underweight at JPMorgan; PT A$16.20
- CYBG Upgraded to Equal-weight at Barclays; PT 2.20 Pounds
OUR CALLS
No changes today
Watch out for the weekend report. Have a great night,
Harry & 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, or after the session when positions are traded.
Disclaimer
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