Author: james Carter
Three Healthcare stocks that are interesting at current levels
• The ASX 200 clawed back most of its losses, ending 3 points higher at 5904 after trading as much as 32 points lower earlier today.• The banking sector had a breather, closing only slightly lower. Commonwealth Bank (CBA) closed 0.0% lower at $91.12 and Westpac (WBC) down 0.2% at $37.83.• Macquarie (MQG) resumed trading today after a successful capital raising, at pretty much no discount from previous close. We are short term optimistic MQG at present. MQg closed 1.3% higher at $74.50.• Myer (MYR) rallied 4.1% at $1.67 after retail sales were reported in line with consensus. Short covering seems to be the reason for the rally in MYR.• Fortescue Metals (FMG) announced it has extended its debt. We see this news as a breather before the inevitable and remain bearish FMG at present. FMG closed unchanged at $2.29
After “no rate cut” where now for equities?
• The ASX 200 continued to weaken as anticipated (see morning report), ending 32 points lower at 5901.• Both the banking and resource sector contributed to much of the negative tone today. Commonwealth Bank (CBA) down 0.9% at $91.13 and Fortescue (FMG) down 5.4% at $2.29.• Woolworths (WOW) continues its downfall. Down 1.6% at $29.35 and was the most searched stock today.• Crown Resorts (CWN) closed 0.5% higher at $15.59 despite further bad news in Macau, the gambling revenue fell for the ninth straight month.• Macquarie Group (MQG) went into trading halt today pending a capital raising for ~$500m after acquiring an aircraft portfolio for US$4b. MQG last traded at $73.52 and has rallied more than 26% in 2015.• Global Central Banks continue to stimulate its economies. Today, India’s Central Bank cut its rate by 0.25% to 7.5%.
**Note, the RBA meets this afternoon and announces its March interest rate decision this afternoon, 2.30PM**
• The ASX 200 closed 25 points lower at 5933 after rallying as much as 38 points prior to the much hyped RBA interest rate decision. The intraday was as much as 98 points after the RBA announced no change to its current interest rate of 2.25%.• The banking sector reversed early gains with ANZ and Westpac again hitting all-time highs. Commonwealth Bank (CBA) ending the day down 0.7% at $91.92 while ANZ closed 0.1% lower at $35.66 after hitting an all-time high of $36.09 and Westpac (WBC) also 0.1% lower at $38.26 after hitting an all-time high of $38.97.• After the RBA’s interest rate decision, we now have a short term downside target towards the ~5750 area prior to a rally, likely in April. Please watch out for our morning note tomorrow with our updated macro view of the ASX 200 and related stocks.
** The People’s Bank of China (PBOC) cut its interest rates over the weekend by 0.25%, a potential lift in the ASX200 today and ahead of RBA’s interest rate meeting tomorrow.**
• The ASX 200 rallied as much as 55 points prior to closing 36 points higher at 5965.• The much anticipated rally was from a mixture of the PBoC cutting its interest rates over the weekend and locally and a 73% chance of a March rate cut tomorrow. As at this morning, the market is betting on a rate cut down to 2.1% tomorrow and 1.85% by July.• It is with no surprise investors were chasing the high yield stocks due to interest rate cut concerns, such as the banks. ANZ closed 1% higher at $35.70 and National Australia Bank (NAB) up 1.1% at $38.32. • The major supermarkets continue to disappoint as expected. Woolworths (WOW) closed 4.6% lower at $29.29 and Wesfarmers (WES) down 1.3% at $43.30. Please refer to this morning’s report and comments on the companies and sector.• Myer (MYR) slumped 10.8% to $1.655 following the announcement of the departure CEO, Bernie Brookes and CFO, Mark Ashby. Prior to the announcement, MYR is the most “shorted” stock, with 18.9% interest of its quoted shares on issue, reported as a short position.• Orica (ORI) had an explosive 3.4% close higher at $20.50 after announcing an on market buyback of up to $400m in the next 12 months.
Interest Rates remain the key & five companies that reported yesterday
• The ASX 200 closed 20 points higher at 5929, up 0.8% for the week.• As reporting season wraps up, the focus today were on the high yielding stocks, with Commonwealth Bank (CBA) rallying $1.50, or 1.66% at $91.92 and Telstra (TLS) up 1% at $6.37.• Woolworths (WOW) reported weaker than analysts’ expectations and slumped 9.5% at $30.71. We remain bearish WOW as mentioned previously. Wesfarmers (WES) followed suit, falling 3.5% at $43.85.• Medibank (MPL) rallied 4.1% after announcing it will increase its premiums by an average of 6.6%.• Newcrest Mining (NCM) closed 3.3% higher at $14.39 after selling its Evolution (EVN) stake for $106m.• Please watch out for the Hickman Report tomorrow.
Really bullish, there's more to go in the reflation rally
Please enter your login details
Forgot password? Request a One Time Password or reset your password
One Time Password
Check your email for an email from [email protected]
Subject: Your OTP for Account Access
This email will have a code you can use as your One Time Password for instant access
To reset your password, enter your email address
A link to create a new password will be sent to the email address you have registered to your account.
Enter and confirm your new password
Congratulations your password has been reset
Sorry, but your key is expired.
Sorry, but your key is invalid.
Something go wrong.
Only available to Market Matters members
Hi, this is only available to members. Join today and access the latest views on the latest developments from a professional money manager.
Smart Phone App
Our Smart Phone App will give you access to much of our content and notifications. Download for free today.
