Afternoon Report / Shorts are for the beach at Christmas! ASX rallies 1.2%, tech leads with energy & resource close behind, Z1P raises capital (Z1P, BAP)

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The ASX rallied strongly today adding 1.2% for the best daily gain in a few weeks, the Santa rally seems to be starting underpinned by a stronger than expected economic update today. Technology was led higher by Afterpay (APT) +5.7% which hit another all time high, so too did Xero (XRO) on a close basis which we hold in the growth portfolio, while Zip Co (Z1P) tapped the market for $120m in growth capital.

Not all was positive though today with the travel stocks feeling some heat after a new COVID outbreak on the Northern Beaches of Sydney, which is where I live. WA are now thinking about shutting their borders while Queensland thus far are saying it’s too early – in any case, it’s a negative for travel stocks and we saw the likes of Flight Centre (FLT) -3.03% and Corporate Travel (CTD) -4.37% trade lower today.

Aside from the strong economic update from the Treasurer today, we also had a decent set of employment figures with the unemployment rate falling to 6.8% v 7% expected plus there was a stronger than expected participation rate.  

Source: Bloomberg

All up a solid session for the ASX with a backdrop of better economic trends and a hugely stimulatory environment with low rates and fiscal support, we remain bullish equities well into next year.

The ASX 200 finished up +77pts / 1.16%% to close at 6756. Dow Futures are trading up +64pts / +0.29%

ASX 200 Chart

ASX 200 Chart


Zip Co (Z1P) +1.08%: Ended the session higher today after announcing a $150m capital raising to fund international growth. The raise was a poorly kept secret and perhaps the reason why the stock has been on the nose of late relative to Afterpay (APT), however they ripped the Band-Aid off overnight and tapped insto’s for 120m at $5.34 (4.1% discount to last close) and they’ll raise another $30m in a share purchase plan through retail.   The proceeds will be used for: 1) US growth ($85m); 2) UK expansion ($15m); 3) new markets ($35m); 4) product expansion ($12m). They should now be very well placed to execute on a variety of growth strategies, and with some luck, the stock might rally – APT is certainly showing how it’s done.

Zip Co (Z1P) Chart

Bapcor (BAP) +3.01%: came off the boil through the session, though finished higher on a solid update for the first 5 months of the new year. Certainly, a winner out of COVID, the car parts business has ridden the coat tails of the new world order in terms of travel. Revenue was 26% higher through to the end of November with profit eyeing a 50% boost for the first half. This sort of trend is indicative across the retail landscape as present as cashed up consumers consume…

Bapcor (BAP) Chart


  • Maas Group Rated New Buy at Moelis & Company; PT A$3.08
  • APA Group Raised to Hold at Morningstar; PT A$9.50
  • Saracen Mineral Raised to Buy at Citi; PT A$5.30
  • Perseus Raised to Buy at Citi; PT A$1.55
  • Northern Star Raised to Buy at Citi; PT A$13.90
  • Zip Co. Raised to Neutral at UBS; PT A$5.70
  • Countplus Raised to Overweight at Wilsons; PT A$1.30
  • Service Stream Cut to Hold at Canaccord; PT A$2.25
  • Codan Raised to Buy at Canaccord; PT A$13
  • Adbri Cut to Sell at Morningstar
  • Centuria Capital Group Rated New Neutral at Goldman; PT A$2.52
  • Zip Co. Rated New Negative at Evans & Partners Pty Ltd
  • Sezzle GDRs Rated New Positive at Evans & Partners Pty Ltd


No changes today

Major Movers Today

Have a great night

James, Harry & the Market Matters Team


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