Afternoon Report / Little appetite to buy the dip into the weekend

By Market Matters 11 September 20

Little appetite to buy the dip into the weekend

Market Matters Income Report 11th September 2020

WHAT MATTERED TODAY

The market eased into the weekend and while it found some support off the lows through the session, a weak finish to the day weighed on the efforts of buyers. Banks were weaker again, though this time more in line with index weakness. Tech saw the most selling with the steam still coming out of the lofty valuations seen in the space. Oil markets were weaker overnight, so it came as no surprise that energy names came off today. We like energy around here with demand continuing to rebound and a lack of investment to eventually lead to supply constraints. Healthcare was the only sector better, heavy weight CSL the main supporter here.

Nearmap (NEA)  took the biggest hit today, resuming trade after raising money and also seeing a director sell more than 4 million shares – not a great look for a company to ask for money but also see insiders take some cash off the table. Independence group (IGO) bucked the broader weakness. The gold/nickel miner is undertaking a strategic review of its gold exposure saying it regularly receives unsolicited bids while it has made no secret of the intention to add to its battery mineral exposure. One to keep an eye on.

Overall, the ASX 200 closed down 49pts / -0.83% to 5859 today. US Futures are higher, with Dow Futures up 146pts/0.53%.

ASX 200 Chart

ASX 200 Chart

CATHCING MY EYE

Sectors this week

Stocks this week

BROKER MOVES

·         Santos Raised to Buy at UBS; PT A$6.50

·         Mineral Resources Cut to Underweight at Morgan Stanley

·         Fortescue Cut to Underweight at Morgan Stanley; PT A$14.50

·         Adbri Cut to Hold at Morningstar

·         Costa Raised to Hold at Morningstar

·         NextDC Raised to Outperform at Macquarie

·         Nearmap Cut to Neutral at Goldman; PT A$2.95

·         OceanaGold GDRs Cut to Underperform at BofA; PT A$2.70

·         Nearmap Cut to Sector Perform at RBC; PT A$3

·         Sigma Healthcare Raised to Outperform at Credit Suisse

·         Pro Medicus Cut to Hold at Bell Potter; PT A$26.50

·         BHP Group PLC Raised to Neutral at Oddo BHF

OUR CALLS

No changes today

Have a great night

James, Harry and 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.

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