Afternoon Report / Stocks post strong gains to end the week

By Market Matters 14 September 18

Stocks post strong gains to end the week

Afternoon Report 14th September 2018


WHAT MATTERED TODAY

The market recovered a large proportion of yesterday’s losses to once again end strongly for the week. Less company specific news flow in the last few days as we trade along in the post reporting slumber. The Royal Commission is dominating the wires and this week it was the insurance stocks that felt most pain.

Overall, the index closed up +36 points or +0.60% today to 6165 – up 0.35% on the week


ASX 200 Chart

ASX 200 Chart

CATCHING OUR EYE

Broker Moves; -- Australian industrial stocks with greater exposure to heavy construction and infrastructure will perform better as residential construction softens, Morgan Stanley think in a note our yesterday. They believe residential construction activity will likely to soften after a “protracted peak” with east coast apartment market most at risk while detached housing is likely to outperform high density

RATING CHANGES;

• CYBG Upgraded to Hold at Investec
• Fonterra Upgraded to Neutral at First NZ Capital; PT NZ$5.09

Weekly Moves – Stocks & Sectors; On a sector level, Energy had a stormer thanks to a higher Oil price while some of the high flying IT stocks recovered from last week’s loses.

Sectors over the past Week


At a stock level, AfterPay (APT) was back in top spot while WhiteHaven Coal (WHC) also had a strong move. Interestingly, I was out to dinner last night with Tribecca as they look to raise money for a resource fund and Coal is a part of the market they like - they’re particularly bullish on NewHope (NHC)

Stock moves over the week


OUR CALLS
No changes the portfolios 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 14/09/2018

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