Australian Investment Blog

WHAT MATTERED TODAY

A poor session to end the week with the Friday sell-off becoming an entrenched theme, not surprising given the raft of negative headlines that will dominate the news over the weekend, led by the US becoming the country with the highest number of confirmed COVID-19 cases sitting at 85,594. NAB was out today suggesting unemployment could get to 12% while the economy could contract by 5% in the second quarter, clearly sobering stats. Citi forecast unemployment at 8.4%, Westpac at 11.1%, Goldman’s as 8.5% and JP Morgan at 11%. Goldman’s is the most bearish in in terms of GDP assumptions looking for 2Q GDP to come in at -10% q/q.

The market started firm the morning following a strong night overseas, however as the weekend approached, US Futures were sold off from earlier highs (currently -1.8%) as those who bought Mondays weakness cashed in pushing the market sharply lower into the close.

Asian market were actually all higher today due to relative calm on the virus front, Japan has been doing a good job and their market rallied +2.46%, while China was marginally higher.

Today the ASX 200 fell -270pts /-5.30% to close at 4842 - Dow Futures are trading down -383pts/-1.73%

ASX 200 Chart

ASX 200 Chart

CATCHING MY EYE:

Sectors this week:

Stocks this week:

BROKER MOVES:

• Village Road show Raised to Buy at EL & C Baillieu; PT A$2
• Domino's Pizza Enterprises Raised to Neutral at UBS; PT A$51
• OceanaGold GDRs Cut to Neutral at Credit Suisse; PT A$1.72
• Sandfire Resources Raised to Buy at Citi; PT A$5
• OZ Minerals Raised to Buy at Citi; PT A$10.70
• IGO Raised to Buy at Citi; PT A$5.90
• Bendigo & Adelaide Raised to Neutral at Macquarie; PT A$6
• Cimic Cut to Neutral at Macquarie; PT A$25.73
• FAR Cut to Hold at Canaccord
• CSR Cut to Hold at Morningstar
• Harvey Norman Cut to Hold at Morningstar
• Breville Cut to Hold at Morningstar
• Technology One Cut to Sell at Morningstar
• REA Group Cut to Hold at Morningstar
• Premier Investments Cut to Neutral at Credit Suisse; PT A$10.17
• Steadfast Raised to Outperform at Credit Suisse; PT A$3.50
• Macquarie Group Raised to Outperform at Credit Suisse; PT A$110
• Suncorp Raised to Neutral at Credit Suisse; PT A$9.15
• Afterpay Cut to Equal-Weight at Morgan Stanley; PT A$19
• Northern Star Raised to Buy at Canaccord; PT A$15.25
• Japara Raised to Neutral at JPMorgan; PT 65 Australian cents
• Healius Cut to Hold at Jefferies
• Genworth Australia Cut to Neutral at Evans & Partners Pty Ltd
• Northern Star Cut to Neutral at JPMorgan; PT A$12
• ResMed GDRs Cut to Neutral at Credit Suisse; PT A$25.10
• Transurban Raised to Positive at Evans & Partners Pty Ltd
• OZ Minerals Raised to Sector Perform at RBC; PT A$8.50
• Bathurst Resources Cut to Speculative Hold at Bell Potter

OUR CALLS

We trimmed Macquarie (MQG) in the Growth Portfolio and Sold Metcash (MTS) for a +20% profit in the Income Portfolio

Major Movers Today

Have a great night

James, 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.

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