Afternoon Report / Resource stocks regain their mojo

By Market Matters 18 May 20

Resource stocks regain their mojo

Market Matters Afternoon Report 18th May 2020

WHAT MATTERED TODAY

A solid session to start the week with the ASX defying the negativity and continuing to move higher, today it was material stocks that built on last weeks gains as better economic data from China + strength in both Iron Ore and Gold underpinned the sector, Fortescue Metals (FMG) trading up to an all-time high today above $13 while RIO also found some buyers adding nearly 6%. Energy played a respectable supporting role today as Crude traded above $30 for the first-time in 2 months, the oil coys doing well led by STO +5.87%. Auckland International Airport (AIA) provided an insight into traffic numbers today, in April passenger numbers down around 97%, not a surprise but a big number none-the-less. Sydney Airports (SYD) out Wednesday with their monthly stats.

US Futures opened higher this morning and that underpinned strength for the ASX early, however the gains were added to throughout our session, Asian markets also trended up.

Overall, a decent start to the week with some sectors that we like / and are positioned within doing well, although the banks remained friendless.  

Overall, the ASX 200 added +55pts / 1.03% today to close at 5460 - Dow Futures are trading up +268pts/+1.14%.

ASX 200 Chart

ASX 200 Chart

CATCHING MY EYE:

Direct from the Desk: A wrap up of todays trade

BROKER MOVES:

  • GrainCorp Raised to Market-Weight at Wilsons; PT A$3.81
  • Charter Hall Group Raised to Buy at UBS; PT A$9.80
  • Woodside Cut to Neutral at Macquarie; PT A$23.50
  • Breville Cut to Neutral at Macquarie; PT A$20
  • GrainCorp Cut to Hold at Morningstar
  • Ansell Cut to Hold at Morningstar
  • Lynas Rated New Outperform at CLSA; PT A$2.05
  • Charter Hall Group Raised to Outperform at Credit Suisse
  • GWA Group Raised to Buy at CCZ Statton Equities Pty Ltd.·       

OUR CALLS

Growth Portfolio: We added to our existing position in Xero (XRO) today

Major Mover Today

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.

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