Afternoon Report / Resources - is the run over? Video update with James Gerrish & Peter O'Connor

By Market Matters 03 May 19

Resources - is the run over? Video update with James Gerrish & Peter O'Connor

Market Matters Afternoon Report 3rd May 2019

**Please note: best & worst sectors are flipped incorrectly**

WHAT MATTERED TODAY

A more subdued session today at the index level with the market fairly flat, although under the hood, there were a number of big movers. Macquarie Group (MQG) dropped -5.43% to close at $128.81 with the outlook statement the problem in their results. It’s unusual to see the outlook to include the comment of slightly down in terms of their FY20 guidance - Janus Henderson (JHG) was unfortunately worse, down by 12% after missing earnings expectations when they reported overnight while on the flipside, Resmed (RMD) added nearly 10% after reporting a better than expected quarterly. More on these stocks in coming notes and our plans for them going forward.

Overall today, the ASX 200 fell -2pts or -0.04% to 6335. Dow Futures are trading up +25points / 0.10%.

Today I sat down with Shaw & Partners Resource Analyst Peter O'Connor & discussed Fortescue Metals (FMG), BHP & RIO, along with Alumina (AWC),  Whitehaven (WHC) & Newhope (NHC) plus best picks in the Gold space. 

Broker moves: 

·         Pendal Group Upgraded to Neutral at UBS; PT A$7.85

·         Pendal Group Upgraded to Neutral at Credit Suisse; PT A$7.65

·         Pendal Group Upgraded to Overweight at JPMorgan; PT A$8.90

·         Austal Cut to Hold at Argonaut Securities; Price Target A$2.55

·         Janus Henderson GDRs Downgraded to Neutral at Macquarie; PT A$36

·         Dexus Cut to Underperform at Macquarie; Price Target A$11.36

·         Sky Network TV Raised to Outperform at First NZ Capital

·         Super Retail Upgraded to Hold at Morningstar

·         Carsales.com Raised to Positive at Evans and Partners

·         Credit Corp Downgraded to Sell at Morningstar

·         Sundance Energy ADRs Rated New Outperform at Imperial; PT $6

OUR CALLS

We bought Orecobre (ORE) today in the Platinum Portfolio



Have a great night

James & 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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