Equities sold off into the weekend
WHAT MATTERED TODAY
The ASX closed lower again today for the 4th time this week with fairly broad but mild selling following the soft lead from US markets. The week saw the ASX down 2.29%. The virus remains the main concern for investors, weighing on risk assets. Oil was particularly weak dipping back below $40/bbl on fears re-introduction of restrictions would stifle demand again and put pressure on already near full stockpiles. The local energy names followed the commodity lower – Oil Search (OSH) and Whitehaven (WHC) both traded more than 4% lower making the energy sector the worst of the groups. The banks were also weak, but CBA managed to buck the trend with quality holding up. The red hot BNPL names ran hard early but came well off the intra-day high – Afterpay topped yesterday’s peak before falling more than 5% in the session to close 1.62% lower, while Zip Co was 15% better early on only to close 8% higher.
At the stock level, NZ telco Chorus (CNU) saw its value tank on a slide in activity with new connections slowing with the COVID lockdown which the market clearly wasn’t expecting - shares were trading around the same level to pre-COVID before today’s announcement. Netwealth (NWL) tracked higher again with momentum coming from yesterday’s solid update.
Overall, the ASX 200 closed down -36pts or -0.61% to 5919. Dow Futures are trading down -199pts/-0.78%.
ASX 200 Chart
ASX 200 Chart
CATCHING MY EYE;
Sectors this week
Source: Bloomberg
Stocks this week
Source: Bloomberg
BROKER MOVES;
· Treasury Wine Raised to Neutral at Macquarie; PT A$11.50
· AGL Energy Cut to Underperform at Macquarie; PT A$15.91
· Treasury Wine Cut to Underweight at JPMorgan; PT A$10
· Evolution Cut to Sell at Goldman; PT A$4.60
· Regis Resources Cut to Sell at Goldman; PT A$4.10
· Temple & Webster Rated New Buy at Goldman; PT A$8.50
· SeaLink Raised to Buy at EL & C Baillieu; PT A$5.15
OUR CALLS
No changes today
Major Movers Today
Have a great night
Harry and the Market Matters team
Disclosure
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