May nerves start on day 1
WHAT MATTERED TODAY
Coming straight off the back of a strong April, the sell in May thematic certainly held true on the first day of the month at least with the index losing more than half of April’s gains. The index opened lower, was stable for much of the session before sellers put the boot in late. The sectors that did well in April saw most selling as profit takers came in hard. It looked like a big seller on the close that really did the damage – the index losing ~40pts in the match.
Todays trade a warning that markets will remain volatile and susceptible to big swings - in case we’d forgotten!
The PM gave a news conference this afternoon and while he brought forward a decision on reducing restrictions by a week, which is a positive, the Treasury Secretary recapped some fairly alarming economic stats:
· More than 1.5 million on JobSeeker, with 900,000 claims processed in the past six weeks
· Unemployment rate due to rise to 10 per cent "and potentially beyond"
· 650,000 businesses have registered for JobKeeper
· 950,000 applications to access superannuation worth $7.9 billion in claims
· More than 340,000 businesses have received a cashflow boost worth over $6 billion
· 6.8 million welfare and pension recipients have been given a $750 payment (total $5.1 billion paid), with a further payment to be made in July
Overall, the ASX 200 closed down -276pts or -5.01% to 5245. Dow Futures are trading down -344pts/-1.42%.
ASX 200 Chart
ASX 200 Chart
CATCHING MY EYE;
Sectors this week:
Source: Bloomberg
Stocks this week:
Source: Bloomberg
BROKER MOVES;
· Qube Raised to Buy at Citi; PT A$2.75
· Healius Resumed Neutral at Macquarie; PT A$2.70
· Qube Raised to Outperform at Credit Suisse; PT A$2.80
· Stanmore Coal Cut to Market-Weight at Wilsons; PT A$1
· SkyCity Entertainment Cut to Hold at Morningstar
· AMP Cut to Hold at Morningstar
· Iress Cut to Hold at Morningstar
· Aristocrat Cut to Hold at Morningstar
· Sydney Airport Cut to Hold at Morningstar
· Alumina Cut to Sell at Morningstar
· Transurban Cut to Sell at Morningstar
· CBA Cut to Hold at Morningstar
· GPT Group Raised to Outperform at Credit Suisse; PT A$4.56
· GPT Group Cut to Hold at Jefferies; PT A$4.50
· Pacific Smiles Cut to Hold at Bell Potter; PT A$1.42
· Orora Cut to Neutral at Credit Suisse; PT A$2.15
· Westgold Raised to Buy at Bell Potter; PT A$2.65
· REA Group Cut to Hold at Jefferies; PT A$88.49
· Adelaide Brighton Cut to Hold at Morgans Financial Limited
· AP Eagers Raised to Add at Morgans Financial Limited; PT A$7.30
OUR CALLS
No changes to the portfolios today.
Major Movers Today
Have a great Weekend all
James, Harry & the Market Matters Team
Disclosure
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