Afternoon Report / IAG Taps investors for BI losses

By Market Matters 20 November 20

IAG Taps investors for BI losses

WHAT MATTERED TODAY

Very little in the way of news flow to move the market in either direction today, trading in a tight 27 point range throughout – closing just 8pts lower, it was the first day in the red for the ASX200 this week. Tech clawed back some of the underperformance it had seen through the week while the opposite could be said for energy stocks, giving back some gains after a big week – sector rotation took a bit of a breather, though Oil Search (OSH) was the main drag for energy names, copping three broker downgrades following their investor day yesterday.

IAG managed to get a big cap raise over the line - $650m through an insto placement at $5.05 a share with an SPP to follow. A 7.5% discount to last, funds will go straight into provisioning for Business Interruption insurance. The insurers had a ruling go against them in the NSW Supreme Court this week which could see them liable to a number of claims. QBE and Suncorp are well provisioned already, however IAG was taking a more glass half full approach until this point and the low capital balance forced their hand here.

By the close, the ASX 200 fell -8pts / -0.12% to close at 6405. Dow Futures are trading down -189pts/-0.64%

ASX 200 Chart

ASX 200 Chart

 

CATHCING MY EYE

Sectors this week

Stocks this week

BROKER MOVES

  • Oil Search Cut to Hold at Morgans Financial Limited; PT A$3.65
  • Regis Healthcare Raised to Neutral at Macquarie; PT A$1.85
  • FlexiGroup Raised to Outperform at Macquarie; PT A$1.40
  • Oil Search Cut to Underperform at Credit Suisse; PT A$3.10
  • Japara Raised to Overweight at JPMorgan; PT 75 Australian cents
  • Estia Health Raised to Overweight at JPMorgan; PT A$1.85
  • Centuria Industrial Rated New Buy at Jefferies; PT A$3.40
  • GUD Holdings Raised to Outperform at Credit Suisse; PT A$13
  • Insurance Australia Cut to Hold at Bell Potter; PT A$5.60
  • Virtus Health Raised to Buy at Jefferies; PT A$6.35
  • Oil Search Cut to Neutral at JPMorgan; PT A$4
  • Atlas Arteria Cut to Hold at Morgans Financial Limited

OUR CALLS

No changes today

Have a great weekend,

James, Harry and the Market Matters team

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