CYB Breaks out, TLS finds support, Amazon stirs the market while the ASX fails 6000 again (TLS, CYB, GSW)
WHAT MATTERED TODAY
The best of it was seen early on today with the market opening strong before sellers came over the top from around midday. A move of +20pts (0.33%) locally today is a weak effort given the +300pts (1.3%) we saw on the Dow overnight – still, a reasonable way to end the week. We continue to think that a pullback down to sub 5900 is the likely path for Aussie stocks into the start of November, before strong seasonality takes hold towards Christmas. A reasonably active week for the MM Portfolios with a repositioning to take advantage of higher interest rates within the income portfolio, while we took a nice profit in Aristocrat within the Growth Portfolio.
6000 once again seems to be an issue for the market, as strength was sold into sending the market down 20points from its highs. CBA was one of the main detractors here, testing the $80 mark early before closing lower as sellers kicked in around 12.30pm. Interestingly, CBA was the only major bank to finish lower today, clearly the market expects the Royal Commission to hit CBA the hardest.
On the mkt today, Energy did best while most weakness was felt in the telco space - a range today of +/- 36 points, a high of 6011, a low of 5975 and a close of 5989, up 20pts or 0.33%.
ASX 200 Intra-Day Chart
ASX 200 Daily Chart
As suggested above, some higher than usual activity across our portfolios this week, with all activity across our portfolios outlined below;
TOP MOVERS
1.Telstra - This morning Telstra downgraded FY18 numbers by ~6% on the back of delayed NBN one off payments after the announcement earlier this week that HFC line NBN connections will be reworked. A sizeable near term downgraded, however the payments are still built in to Telstra’s profits, and will flow through to the bottom line in FY19 and beyond. On the back of some bad news, TLS only fell -0.3% to $3.42, and with the risk of sounding like a broken record, a market that does not fall on bad news is a strong market.
Telstra (TLS) Daily Chart
2. CYBG – Clydesdale continued its strong rally today, and despite finishing a long way from intra-day highs, was one of the best performing financials today. The developments around the intricacies of Brexit continue to be more positive than the market has expected, and as expectations around rising British interest rates, and so to the British Pound, trading conditions for CYB improve. Momentum in CYB remains, which we hold in the MM Growth Portfolio, closing 1.8% higher today.
Clydesdale (CYB) Daily Chart
3. Getswift – GSW more than doubled this morning when news broke of a “global agreement” with Amazon. The details of the agreement are yet to be released, but despite the lack of detail, traders jumped into the stock without hesitation which was placed into a trading halt after trading for only 10 minutes this morning The logistics company is yet to finalize terms with Amazon, nonetheless this seems to be the buzz word in the market these days and speculation runs high for any company involved with the global conglomerate. GSW is one to watch, already jumping 1100% year to date.
Getswift (GSW) Daily Chart
OUR CALLS
We revised our SELL level this morning for Nanosonics to $2.69. the stock was up +4.7% today and will continue to remain patient here on our exit. NAN is a position we re-evaluate on a daily basis and today’s move shows that we should be patient with our exit, looking to reduce the loss as much as possible.
Have a great night
James & the Market Matters Team
Disclosure
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Disclaimer
All figures contained from sources believed to be accurate. Market Matters does not make any representation of warranty as to the accuracy of the figures and disclaims any liability resulting from any inaccuracy. Prices as at 01/12/2017. 4.20PM
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