Buyers step in late
WHAT MATTERED TODAY
Early strength was once again sold into as money flowed out of equities ahead of the daily virus update. Victoria set a new state record with 428 positive cases since yesterday while NSW saw the number of new infections fall day on day, falling back into single figures with 8 cases. Travel related stocks were weaker on the back of the numbers and the index tested the 6000 for the second day running, hovering around that level until late in the afternoon. With around half an hour left in the day, buyers returned looking to add risk into the weekend and equities tracked ~30pts higher into the close. As was the case in the US market, tech was the underperformer both today and over the week. Money was rotating out given the recent outperformance, while materials were the best for both the day and the week. The week saw the index up 1.93%, or 114pts, rebounding back from the weakness last week.
Rio Tinto was the main attraction for stock news – their 2 quarter production numbers were largely in line with expectations though Iron ore was a little off. The market was pleased with the numbers and Rio traded in line with peers, closing in the black.
Overall, the ASX 200 closed up 22ts or +0.38% to 6033. Dow Futures are trading up 52pts/0.2%.
ASX 200 Chart
ASX 200 Chart
CATCHING MY EYE;
Sectors this week
Source: Bloomberg
Stocks this week
Source: Bloomberg
BROKER MOVES;
- Perpetual Raised to Neutral at Citi; PT A$32
- Whispir Rated New Buy at Canaccord; PT A$4
- Qube Raised to Accumulate at Ord Minnett; PT A$3.09
- OceanaGold GDRs Raised to Overweight at JPMorgan; PT A$4.20
- Senex Cut to Equal-Weight at Morgan Stanley
- National Storage REIT Raised to Overweight at JPMorgan
- Alumina Raised to Overweight at JPMorgan; PT A$2.10
- Helloworld Cut to Hold at Bell Potter; PT A$2
- Alumina Raised to Outperform at Credit Suisse; PT A$2
OUR CALLS
No changes today
Major Movers Today
Have a great night
Harry and 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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