Afternoon Report / NAB gets a new CEO

By Market Matters 19 July 19

NAB gets a new CEO

Market Matters Afternoon Report 19th July 2019

WHAT MATTERED TODAY

The market stormed ahead to finish the week with the spurt higher, ticking around the 6700 level, near to where the ASX200 started the week helped by more dovish statements from the Fed, as well as JP Morgan CIO Bob Michele calling for US rates to go to 0%. Gold miners were strongly bid in particular thanks to a run in the gold price and the Aussie dollar overnight as a result of the comments. Energy was weaker despite rising tensions in the Middle East. Oil prices fell overnight, the International Energy agency lowering their demand forecast for the third time in recent months to a level which will likely put the market into surplus.

The big stock specific story today was NAB announcing the appointment of Ross McEwan as CEO. The New Zealander McEwan has an extensive resume including heading up CBA’s retail bank and was more recently the CEO of the Royal Bank of Scotland for the past 6 years, navigating the bank through its own advice and remediation crisis. NAB shares were strongly bid on the news, well outperforming other positive moves from the big four to close 2.19% higher.

Overall today, the ASX 200 closed up +51pts or 0.77% at 6700. Dow Futures are trading up +108 points or 0.40%

ASX 200 Chart

ASX 200 Chart

CATCHING OUR EYE:

Sectors this week:

Stocks this week

Broker Moves;

·         BHP AU: BHP Group PLC Downgraded to Neutral at Oddo BHF

·         DXS AU: Dexus Downgraded to Negative at Evans & Partners; PT A$11.42

·         MGR AU: Mirvac Group Cut to Negative at Evans & Partners; PT A$2.80

·         NWS AU: News Corp Downgraded to Underweight at JPMorgan; PT $12

·         RRL AU: Regis Resources Downgraded to Hold at Blue Ocean; PT A$6.60

·         SMR AU: Stanmore Coal Downgraded to Hold at Bell Potter; PT A$1.60

OUR CALLS

We took a profit on ASL and switched into the GDX ETF (this is the Australian Listed VanEck Gold Miners ETF) today in the Platinum Portfolio.

Watch out for the weekend report. Have a great night.

James, 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.  Market Matters does not make any representation of warranty as to the accuracy of the figures and disclaims any liability resulting from any inaccuracy.  Prices as at 19/07/2019

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