Early support fades, the market edges lower (PTM)
WHAT MATTERED TODAY
The market drifted lower throughout the session today, dragged down by both resources and banks. Telstra bucked the trend and was one of the few market heavyweights that ended in the black, helping the telcos top the sector leader board. On the flipside, Macquarie gave back some of its recent rally, falling $2, to lead the financials lower. Some Aussie data printed today, with retail sales data reasonable without being amazing – growing at 0.4% for the month, slightly higher than the forecasted +0.3%. The trade balance also grew to a $1.2b surplus which shows the Aussie economy chugging along reasonably well, although likely driven by some better commodity prices of late.
Afterpay rallied almost 5% - recovering from an early fall of -3.7% - on no news, while Genworth fell 8.75% also without any note worth commentary – potentially some large portfolio rebalances as we get into the new financial year.
Overall today, the index finished down -26points or -0.43% to close at 6183.
ASX 200 Chart
ASX 200 Chart
CATCHING OUR EYE
Broker Moves; analysts were busy in the financials space, either downgrading or issuing a new sell on 3 big names. Platinum Asset Management came off the worst of the three. The stock down strongly (-8.86%) following Morgan Stanley lowering their expectations for upcoming FUM flows. Although Morgan Stanley is not as concerned about transition of CEO Kerr Neilson into a directors role – to be replaced with co-founder Andrew Clifford – they do note slowing inflow trends for the manger, and downside to market expectations in performance resulting in lower performance fees and lower FUM going forward. As a result, MS lowered EPS forecasts by 4% for the financial year just gone, and 13% for FY19.
Platinum Asset Management
Elsewhere:
· AMP (AMP AU): Reinstated at Shaw and Partners With Sell; PT A$3 – We spoke about AMP into today’s Income Report here
· Magellan Financial (MFG AU): Cut to Underweight at Morgan Stanley; PT A$20
· Nanosonics (NAN AU): Downgraded to Hold at Wilsons; Price Target A$3.34
· Platinum Asset (PTM AU): Cut to Underperform at Credit Suisse; PT A$5.25
OUR CALLS
No trades in the MM Portfolios today, however we are watching CYBG closely for an exit around $6.00, currently $5.96
Have a great night
Harry & the Market Matters Team
Disclosure
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