Morning Report / ASX marred by technical issue, closed much of the day, Overseas market tracking higher

WHAT MATTERED TODAY

A difficult day for the ASX given technical issues plagued the session from the get go. Trading was paused from around 10.20AM onwards with the exchange dealing with data feed and execution issues across the board. It was set up to be a strong day, and while the official number will show the ASX200 closed 79pts better to a new post-COVID high, it’s hard to take that as a ‘real’ print. Futures did trade throughout the session, they were strong on the open before giving some back, currently indicating that the index should fall around 15 points on the open tomorrow. Australia’s second exchange, Chi-x, did remain open, though volumes were understandably light given the lack of liquidity. Buying was reasonably broad-based today – banks and resources enjoyed the short spell. Tech remained the underperformer.

ASIC released their reporting on the BNPL sector today. It was largely a non-event in terms of immediate recommendations with the new sector spared from additional credit legislation for now though it clearly points to more regulation down the track. ASIC were clearly concerned about data showing around 1 in 5 BNPL customers were struggling with repayments. For now, a concern for another day.

For those that participated in the Adore Beauty IPO (ABY), Morgan Stanley today initiated coverage with an $8.35 price target. Shaw’s report in the stock out tomorrow. The stock closed today at $6.12

Asian markets traded higher while US Futures were in the black.  

At pause of trade this morning,  the ASX 200 was up +79pts / +1.23% to close at 6484. Dow Futures are trading up +222pts/+0.76%

ASX 200 Chart

ASX 200 Chart

BROKER MOVES

·         Dusk Group Rated New Buy at Canaccord; PT A$2.25

·         Cleanaway Rated New Hold at Jefferies; PT A$2.57

·         Cleanspace Rated New Overweight at Wilsons; PT A$7.25

·         Adore Beauty Rated New Overweight at Morgan Stanley; PT A$8.35

·         GrainCorp Raised to Buy at Goldman; PT A$5.34

·         AUB Group Rated New Overweight at JPMorgan; PT A$20

·         Transurban Cut to Neutral at JPMorgan; PT A$15.50

·         Lendlease Cut to Hold at Jefferies; PT A$14.69

OUR CALLS

No changes today

Major Movers Today

Have a great night

James, Harry & the Market Matters Team

Disclosure

Market Matters may hold stocks mentioned in this report. Subscribers can view a full list of holdings on the website by clicking here. Positions are updated each Friday, or after the session when positions are traded.

Disclaimer

All figures contained from sources believed to be accurate.  All prices stated are based on the last close price at the time of writing unless otherwise noted. Market Matters does not make any representation of warranty as to the accuracy of the figures or prices and disclaims any liability resulting from any inaccuracy. 

Reports and other documents published on this website and email (‘Reports’) are authored by Market Matters and the reports represent the views of Market Matters. The Market Matters Report is based on technical analysis of companies, commodities and the market in general. Technical analysis focuses on interpreting charts and other data to determine what the market sentiment about a particular financial product is, or will be. Unlike fundamental analysis, it does not involve a detailed review of the company’s financial position.

The Reports contain general, as opposed to personal, advice. That means they are prepared for multiple distributions without consideration of your investment objectives, financial situation and needs (‘Personal Circumstances’). Accordingly, any advice given is not a recommendation that a particular course of action is suitable for you and the advice is therefore not to be acted on as investment advice. You must assess whether or not any advice is appropriate for your Personal Circumstances before making any investment decisions. You can either make this assessment yourself, or if you require a personal recommendation, you can seek the assistance of a financial advisor.  Market Matters or its author(s) accepts no responsibility for any losses or damages resulting from decisions made from or because of information within this publication. Investing and trading in financial products are always risky, so you should do your own research before buying or selling a financial product.

The Reports are published by Market Matters in good faith based on the facts known to it at the time of their preparation and do not purport to contain all relevant information with respect to the financial products to which they relate. Although the Reports are based on information obtained from sources believed to be reliable, Market Matters does not make any representation or warranty that they are accurate, complete or up to date and Market Matters accepts no obligation to correct or update the information or opinions in the Reports. Market Matters may publish content sourced from external content providers.

If you rely on a Report, you do so at your own risk. Past performance is not an indication of future performance. Any projections are estimates only and may not be realised in the future. Except to the extent that liability under any law cannot be excluded, Market Matters disclaims liability for all loss or damage arising as a result of any opinion, advice, recommendation, representation or information expressly or impliedly published in or in relation to this report notwithstanding any error or omission including negligence.