Choppy day as EOFY approaches – Charlie Aitken shares his views with MM (OML)
WHAT MATTERED TODAY
The index hovered in an out of positive territory before settling marginally lower resigning the market to a fourth straight session in the red . Materials and energy names were supported after oil and iron ore bounced back overnight, the banks were mixed while the telcos dragged on the index. Mostly the market was just choppy as can expected coming in to the end of financial year.
This morning I sat down with Charlie Aitken from AIM for a quick update on his macro views and the susceptibility of the market at current levels. We discuss US tech, Asian growth, crowded trades and the scope for a large correction in global stocks. Click here to view
Overall, the index fell 1 point, or -0.03% to 6195
ASX200 Chart
ASX200 Chart
CATCHING OUR EYE
Broker moves; Metcash was weaker thanks to Deutsche Bank questioning the company’s ability to drive down costs, while also fearing the loss of South Australian client Drakes may not be the only big retailer to let the supplier go – obviously a risk for MTS but fears we do not share. Elsewhere….
· Beach Energy (BPT AU): Upgraded to Hold at Morningstar
· Link Administration (LNK AU): Rated New Overweight at Morgan Stanley
· Orora (ORA AU): Downgraded to Sell at Morningstar
· Pantoro (PNR AU): Upgraded to Buy at Bell Potter; PT A$0.36
Ooh!Media (OML) $4.82 / -5.91%; resumed trading today after asking investors for money for the acquisition of Adshel from Here There & Everywhere (HT1) and was subsequently sold off as investors make room for the new shares. The acquisition of HT&E’s outdoor advertising arm follows a corporate merry-go-round in the media space, with competitor APN now likely bought by JC Decaux after losing the Adshel bid themselves – both deals are subject to ACCC approval.
Ooh!Media (OML) Chart
OUR CALLS
We sold IFL for a loss in the Growth Portfolio today.
Have a great night
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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