ASX ticks higher after yesterday’s sell-off
WHAT MATTERED TODAY
Today the market has settled in Australia and around the Asian region despite the Dow Jones falling another -545pts overnight. US Futures have moved higher with the DOW Futures up +270pts at time of writing while Asia is up around 1-2%. Looking back to the local futures though tells a more bullish story. They bottomed out at 5.45am this morning and have rallied ~150pts from this morning to the close – clearly a big move and a reasonable sign of a low.
I just quickly scanned the AFR for news and the headlines are as you’d expect; ASX gains as bargain hunters emerge - The RBA warns of market turmoil (would have been helpful last week!), while Donald Trump says Kanye West is ‘pretty impressive’! Anyway, it’s been a big week around the market so today’s report will be brief – with a more comprehensive overview out on Sunday. Enjoy the weekend!
Today the index closed up 11 points or +0.2% at 5895. Dow Futures are up 270pts, or 1.07% while Hang Seng (HK) are up 559pts or 2.21%.
ASX 200 Chart
ASX 200 Chart
CATCHING OUR EYE
Sectors this week; Markets clearly hit hard this week and no sectors were spared. That said, the retailers performed best while the energy stocks were the weakest link. This is highlights the theme we’ve been discussing in the last few months, where the sectors that have lagged the recent rally in the market will perform best during bouts of volatility.
Stocks this week; At a stock level, the takeover for NVT saw it at the top of the boards while the golds were also strong. A big hit to a few of the media names today after Nine reiterated guidance ahead of the merger with Fairfax, whilst the rest of the laggards was made up of mostly tech and energy.
Broker Moves; Shaw’s CIO was out this morning saying that recent volatility across global markets allows the chance to add more growth opportunities and reduce defensive positions…he reckons the market is now in obvious value territory and this is a dip to buy!
Macquarie were banging the drum on Oil Search (OSH) and we tend to agree after a very savage sell off.
RATINGS CHANGES:
· Amcor Upgraded to Buy at Citi; PT A$15
· Amcor Upgraded to Outperform at Credit Suisse; PT A$14.80
· Woodside Downgraded to Underperform at Macquarie; PT A$34.70
· Bendigo & Adelaide Upgraded to Buy at Morningstar
· Perpetual Upgraded to Buy at Morningstar
· Independence Group Upgraded to Hold at Morningstar
· Abacus Property Upgraded to Buy at Morningstar
· Link Administration Upgraded to Buy at Morningstar
· NIB Holdings Upgraded to Buy at Morningstar
· Costa Upgraded to Hold at Wilsons; PT A$6.25
· CYBG Reinstated Underperform at Credit Suisse; PT 2.85 Pounds
OUR CALLS
We added Super Retail Group (SUL) to the Income Portfolio
Have a great night – chat to you in the morning
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.
Disclaimer
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