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


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


·         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


No changes today

Major Movers Today

Have a great night

James, Harry & the Market Matters Team


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