Afternoon Report / CBA upgrades GDP outlook

By Market Matters 13 November 20

CBA upgrades GDP outlook

Market Matters Afternoon Report 13th November 2020


A bit of shine came off the market into the end of the week though investors were pretty keen to buy weakness, helping to lift the index around 25pts from the lows. REITs – one of the big winners from positive vaccine news earlier in the week – gave some back today, as did energy which was softer overnight on higher inventories. Communications led the index as Telstra saw some follow through buying on the back of yesterday’s investor day.

CBA upgraded their growth outlook into 2021 looking for a 4.2% rise in GDP as the economy recovers. The bank is now the most bullish of the private forecasters for next year. The modelers seem to have undershot the recovery thus far, and if upgrades keep coming it could prove a tailwind for banks in particular with the market pricing in some pretty dire bad debt charges through the next few years on a soft economy. Costa Group (CGC) promoted current COO Sean Hallan into the CEO seat – Hallan has been with Costa since 2017. We like the hire; it reduces the risk of a new management re-set to earnings – we hold CGC in the Growth Portfolio.

By the close, the ASX 200 fell -13pts / -0.2% to close at 6405. Dow Futures are trading down -28pts/-0.10%

ASX 200 Chart

ASX 200 Chart


Sectors this week

Stocks this week


·         Sonic Healthcare Raised to Buy at Citi; PT A$38.50

·         Evolution Reinstated Buy at Jefferies; PT A$6.50

·         CSR Cut to Neutral at Macquarie; PT A$5.10

·         Xero Cut to Market-Weight at Wilsons; PT A$115.91

·         Seven West Raised to Outperform at Credit Suisse

·         GrainCorp Raised to Add at Morgans Financial Limited; PT A$4.79

·         Decmil Rated New Speculative Buy at Euroz; PT A$1.01

·         GrainCorp Raised to Buy at Bell Potter; PT A$4.85


No changes today

Have a great weekend,

James, Harry and the Market Matters team


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.


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.