Market hits highest level since May 2015 (TLS, NAB)
The market opened with a bang this morning trading up to its highest level since May of 2015 (5961 on the ASX 200) but failed to hold and traded lower into the close. A mkt that trades to a marginal new high and fails is a bearish sign however based on the daily charts it’s not as relevant + the bullishness in the US is clearly favouring the upside.
The resources saw most love rallying strongly today led by the likes of Fortescue (FMG) which put on +4% - we covered this yesterday in the income report calling it a buy into weakness however we’re yet to pull the trigger. Telstra led the Telcos lower despite re-confirming guidance at their investor day today + they had a look into the future about what a ‘telco of tomorrow’ might look like…more on that below. Overall, a range today of +/- 32 points, a high of 5961, a low of 5929 and a close of 5931, down -6pts or -0.10%.
ASX 200 Intra-Day Chart
ASX 200 Daily Chart
Telstra – their take on the Telco of the future…
Telstra closed down -1.68% today at $3.51 despite reconfirming guidance, probably because the co. says it did see some modest signs of growth in the second half of last year, however it has yet to see this translate into further momentum and mobile services revenue “declined slightly” in 1Q.
Telstra (TLS) Daily Chart
NAB – reported today and the result looked fine, although the decent run up leading into the number was probably why we saw some weakness prevail – the mkt positioned on the long side of this one and no beat = no new buyers and plenty of sellers ahead of a seasonally weak period for the sector. They said they were targeting $1bn cost saving by FY20. Importantly, they will maintain dividends in 2018 + they outlined a planned 12% reduction in staff to help them achieve an aspirational objective of 35% cost to income ratio which would deliver them the highest ROE in the sector. Here are the numbers. Stock closed down 2.83% at $31.95
NAB Daily Chart
Have a great night
The Market Matters Team
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