Afternoon Report / Sell in May & go away – not this year!

By Market Matters 31 May 19

Sell in May & go away – not this year!

Market Matters Afternoon Report 31st May 2019

WHAT MATTERED TODAY

The US market closed marginally higher overnight however before our market opened this morning Mr Trump outlined plans to impose a 5% tariff on Mexican goods until that country stops immigrants from entering the U.S. The proposed tariff would take effect on June 10, “until such time as illegal migrants coming through Mexico, and into our country, STOP.  As  usual Trump used twitter the break the news and that prompted a decent sell off in US Futures during our time zone today – DOW futures sold off a quick -200pts before our mkt opened and remained weak throughout our session. Aussie stocks however, more or less brushed off the news recovering more than ~30pts from the early lows.

As we often say, it’s hard for our market to sell off when the banks are supported, and while they closed largely flat,  there was decent buying from the lows into months end – even Costa Group (CGC) had a big turnaround today to close more than 5% higher on the day.

Overall today, the ASX 200 closed up +5pts  at 6397. Dow Futures are trading down -202 points or -0.80%

ASX 200 Chart

ASX 200 Chart

CATCHING OUR EYE:

Sectors this month;  The market edged higher overall for the month, however some decent profit taking obvious in the IT & energy sectors.

Stocks this week; Lynas a clear standout while a tough week for Costa, Link & Reliance in particular

Broker Moves;

·         Vicinity Centres Resumed at Macquarie With Neutral; PT A$2.49

·         Costa Downgraded to Neutral at Macquarie; PT A$4.05

·         Costa Upgraded to Add at Morgans Financial; PT A$4.77

·         Ansell Downgraded to Neutral at Macquarie; PT A$26.90

·         Australian Pharma Rated New Buy at Citi; PT A$1.60

·         Bapcor Rated New Outperform at Credit Suisse; PT A$6.95

·         Bionmoics Downgraded to Hold at Shaw and Partners; PT A$0.14

OUR CALLS

No changes today

Watch out for the weekend report. 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.

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 31/05/2019

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 MarketMatters 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.