Afternoon Report / Momentum fades despite positive week

By Market Matters 20 December 19

Momentum fades despite positive week

WHAT MATTERED TODAY

The market traded in the red for most of the session, weighed down by consumer stocks, while energy names gave back some of their recent gains. Each of the big 4 traded in the red also weighing on the index. On the flipside, resources were reasonably well bid with Rio doing the heavy lifting.

Costa Group (CGC) were out with an update today which showed no bad news is good news. The stock closed 2.95% higher with signs the downward pressure on earnings might starting to lift. Lotteries business Jumbo Interactive (JIN) was the worst in the top 200 on their half year update on disappointing revenue growth rates. Lend Lease (LLC) snuck through an announcement after market yesterday on their plans to sell the engineering business. It will go to Acciona Infrastructure for $180m with a few carve out involved however the market was a little disappointed with the figure and the stock closed down -4.56%.

In the week, the ASX200 added 76pts/+1.14% as the strong buying of early December lows continued – although it did give back 56pts from the intra-week high.

Overall, the ASX 200 closed down -16pts or -0.25% today to 6816, Dow Futures are trading flat.

ASX 200 Chart

ASX 200 Chart

CATCHING MY EYE;

Sectors this week:

Stocks this week:

BROKER MOVES;

·         Village Roadshow Cut to Hold at Baillieu Ltd; PT A$3.90

·         Nuchev Ltd Rated New Overweight at Wilsons; PT A$4.57

·         Amcor Rated New Neutral at Baird; PT $11

·         Z Energy Cut to Neutral at UBS; PT NZ$4.30

·         Mesoblast ADRs Rated New Buy at Dawson James Securities; PT $14

OUR CALLS

No changes to the portfolios today.

Major Movers Today

Have a great night

Harry & 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.

Disclaimer

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.