The ASX looks like its joined the band of stocks that’s failed after making fresh highs over the last 12-months, the stock fell another 3.8% yesterday on the news that its CEO is retiring later this year, right in the middle of its major clearing and settlement system replacement project that’s underway. ASIC didn’t help sentiment towards the company late last year following its investigation into the market outage in November 2020, the net result was the watchdog imposed additional operational clauses on its licence, not huge but investors never like regulatory intervention.
A number of high profile brokers have actually put sell ratings on ASX due to uncertainties around risks towards costs with its new CHESS replacement project. This could prove a good defensive stock into further weakness with reliable income and yield but we can see momentum / sentiment taking the stock well under $80 in the short-term.
MM is neutral / bearish the ASX short-term
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