Chinese data shows recovery
WHAT MATTERED TODAY
A good session to end the week with Chinese economic data today showing a gradual recovery from the hit from the coronavirus. Industrial output rose 3.9% from a year earlier, versus 1.5% expected and reversing a fall of 1.1% in March. Retail sales slid 7.5%, more than the projected 6% drop but less than half the pace of the previous decline. The positive data supported the material stocks today, the miners doing well capping off a solid week for the sector. China clearly getting back to work with the data supporting that view.
Source: Bloomberg
Locally, the ASX finished the week little changed however it was a choppy week under the hood – down 80pts yesterday, up a similar amount today. As we suggested this morning, we’re bullish the market in the short term after US stocks hit our downside targets – a rally locally today adds to that view. We’re holding fire on the international portfolio this afternoon given its Friday however expect some activity there early next week.
Overall, the ASX 200 added +76pts / 1.43% today to close at 5404 - Dow Futures are trading down -16pts/-0.07%.
ASX 200 Chart
ASX 200 Chart
CATCHING MY EYE:
Sector moves this week
Stock moves this week
BROKER MOVES:
· GPT Group Raised to Buy at Citi; PT A$4.49
· Xero Cut to Neutral at Macquarie; PT A$75
· Dexus Cut to Neutral at Citi; PT A$9.44
· Charter Hall Group Raised to Overweight at JPMorgan; PT A$9
· Breville Cut to Sell at Morningstar
· United Malt Cut to Hold at Morningstar
· Whispir Rated New Positive at Evans & Partners Pty Ltd
· Stanmore Coal Cut to Sell at Bell Potter
· Strike Energy Rated New Speculative Buy at Euroz
· IGO Rated New Buy at Euroz; PT A$6
OUR CALLS
Growth Portfolio: We bought Alumina (AWC) and added to Macquarie (MQG)
Income Portfolio: We bought Wesfarmers (WES) and trimmed the bond fund XARO to fund
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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