Afternoon Report / Stocks make a comeback ahead of the weekend

By Market Matters 26 June 20

Stocks make a comeback ahead of the weekend

Market Matters Afternoon Report 26th June 2020


After a tough day at the office yesterday, stocks recovered today thanks to a late rally in the US overnight despite continued growth in COVID-19 infections. While this week saw a distinct increase in negative news flow, both in terms of the virus + concerns locally around rising unemployment and the looming ‘fiscal cliff’ in September (when Govt assistance packages are due to roll off), the market remained fairly resilient which the ASX 200 off only -0.65%, highlighting MMs view that dips are being bought. QANTAS (QAN) came back on the boards after successfully raising $1.4bn at $3.65 a share, opening at $4.00 this morning, which was a strong result, although that move tapered off during the session with the stock closing at $3.81, down 9%.

Material stocks were well supported today, Copper doing well with Oz Mineral (OZL) +3.39% and Sandfire +6.2% on a UBS upgrade while the banks were led higher by Westpac / +3.27% thanks to a win in the Federal Court in what was known as the ‘Shiraz & Wagyu’, case, essentially the regulator claimed that WBC loan suitability tests were floored,  something they disagreed with and so too did the regulator. Another hit to the regulator who will also pick up Westpac’s costs.  

Nickel stocks remain on our radar, today Western Areas (WSA) remained well bid while Mincor (MCR) came back online post equity raise. We’ll look at this stock again when shares have been issued with the view that the stock will track closer to 70c. Gold also in our sights with Newcrest Starting (NCM) starting to look good.

Overall, the ASX 200 added +86pts / 1.49% today to close at 5904 - Dow Futures are trading down -53pts/-0.21%

ASX 200 Chart

ASX 200 Chart


Sectors this week

Source: Bloomberg

Stocks this week

Source: Bloomberg


·         Metals X Cut to Speculative Buy at Bell Potter

·         Coronado Global GDRs Raised to Buy at UBS; PT A$1.80

·         Western Areas Cut to Neutral at UBS; PT A$2.85

·         Sandfire Resources Raised to Buy at UBS; PT A$6

·         Freedom Foods Cut to Neutral at Citi; PT A$3.27

·         Qantas Cut to Neutral at Citi; PT A$4.60

·         Crown Resorts Raised to Buy at Morningstar

·         Alumina Raised to Hold at Morningstar

·         Sydney Airport Raised to Buy at Morningstar

·         Orocobre Cut to Neutral at Credit Suisse; PT A$2.50

·         Flight Centre Cut to Hold at Jefferies; PT A$13

·         Mayne Pharma Raised to Buy at Bell Potter

·         Woodside Raised to Overweight at JPMorgan; PT A$26.50


No changes today

Major Movers Today

Have a great night

James & the Market Matters Team


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.


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.