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.
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
· 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
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
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.
All figures contained from sources believed to be accurate. All prices stated are based on the last close price at the time of writing unless otherwise noted. Market Matters does not make any representation of warranty as to the accuracy of the figures or prices and disclaims any liability resulting from any inaccuracy.
Reports and other documents published on this website and email (‘Reports’) are authored by Market Matters and the reports represent the views of Market Matters. The Market Matters Report is based on technical analysis of companies, commodities and the market in general. Technical analysis focuses on interpreting charts and other data to determine what the market sentiment about a particular financial product is, or will be. Unlike fundamental analysis, it does not involve a detailed review of the company’s financial position.
The Reports contain general, as opposed to personal, advice. That means they are prepared for multiple distributions without consideration of your investment objectives, financial situation and needs (‘Personal Circumstances’). Accordingly, any advice given is not a recommendation that a particular course of action is suitable for you and the advice is therefore not to be acted on as investment advice. You must assess whether or not any advice is appropriate for your Personal Circumstances before making any investment decisions. You can either make this assessment yourself, or if you require a personal recommendation, you can seek the assistance of a financial advisor. Market Matters or its author(s) accepts no responsibility for any losses or damages resulting from decisions made from or because of information within this publication. Investing and trading in financial products are always risky, so you should do your own research before buying or selling a financial product.
The Reports are published by Market Matters in good faith based on the facts known to it at the time of their preparation and do not purport to contain all relevant information with respect to the financial products to which they relate. Although the Reports are based on information obtained from sources believed to be reliable, Market Matters does not make any representation or warranty that they are accurate, complete or up to date and Market Matters accepts no obligation to correct or update the information or opinions in the Reports. Market Matters may publish content sourced from external content providers.
If you rely on a Report, you do so at your own risk. Past performance is not an indication of future performance. Any projections are estimates only and may not be realised in the future. Except to the extent that liability under any law cannot be excluded, Market Matters disclaims liability for all loss or damage arising as a result of any opinion, advice, recommendation, representation or information expressly or impliedly published in or in relation to this report notwithstanding any error or omission including negligence.