Afternoon Report / Early joy fades (MYR)

By Market Matters 10 September 20

Early joy fades (MYR)

Market Matters Afternoon Report 10th September 2020


The session started with plenty of optimism as the index rode the buy the dip mentality seen overseas at the open. Early on the index reached 5955, or 77pts higher than the previous close on the back of broad buying. From there though it was largely one way with the gains handed back by around 3PM. Some buying was seen into the close but for the most part it was a disappointing turn out for local stocks after the positive signs early which closed nearly 50pts from the day’s high. Within the move today the selloff in the banks was probably most disappointing from an MM perspective. Without the big 4 the index will struggle. REITs were the weakest sector with those exposed to retail continuing to feel the weight of selling. Tech was best – unsurprising given it was the focus of buying overnight, and Nasdaq futures remained supported today. Materials were supported on iron ore stocks with Citi bank calling for the commodity to hold above $US100 in the short term.

Attention turns to jobless claims and PPI data out of the US tonight as the market looks for further indications of the recovery that is underway.

By the close, the ASX 200 was up 29pts / +0.51% to 5908.

Charts unavailable today due to technical issues.


Myer (MYR) -17.65%: the fall from grace continues for Myer which today posted a $172m loss for FY20 as COVID, and an outdated business model took its toll. Sales fell ~15% as store closures being blamed for the bulk. As with all retailers, online was the strength posting 61% sales growth. Comparable same store sales fell 3.3% while margins also eased by 85bps. Retail has had a strange reporting season with quality models with a good online offering doing well while store focussed plays have clearly felt the brunt of COVID shutdowns. The development of Myer over the last few years will have to continue as it shifts away from onerous leases, poor layout and offering if it wants to survive the different retail world going forward.


·         PointsBet Raised to Neutral at Credit Suisse; PT A$10.50

·         Woodside Raised to Add at Morgans Financial Limited; PT A$23.40

·         Appen Raised to Neutral at Credit Suisse; PT A$30

·         Technology One Raised to Add at Morgans Financial Limited

·         AUB Group Rated New Positive at Evans & Partners Pty Ltd

·         Steadfast Rated New Positive at Evans & Partners Pty Ltd


No changes to the portfolios today.

Major Movers Today

Have a great night

James, Harry & the Market Matters Team


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