Afternoon Report / Tech continues to struggle

By Market Matters 13 September 19

Tech continues to struggle

Market Matters Afternoon Report 13th September 2019

WHAT MATTERED TODAY

Small gains today helped the index finish marginally higher week on week, up just 22pts/+0.3% for the 5 sessions. Support was seen on the back of positive trade rhetoric with officials inside the Trump camp talking up the chances of a limited deal being tabled – sounds like something 280 characters on twitter can derail in an instant though.

Tech continued its pullback today, joined by energy stocks after OPEC was seen as soft on producers and didn’t push for further cuts to production. Traders fear a big surplus is set to hit the market next year. Industrials were dragged higher by heavyweights Qantas and Transurban – both also theoretically benefit from lower oil prices. Financials also caught a bid, CBA cracked a new 6 week high, well and truly earning back its big $2.31 fully franked div built in there as well.

Overall today, the ASX 200 closed up +14pts or +0.21% to 6669. Dow Futures are trading up +50 points or +0.18%

ASX 200 Chart

ASX 200 Chart

CATCHING OUR EYE:

Sectors this week:

Stocks this week:  Alumina (AWC) staged a recovery rally this week on the back of the underlying commodity price rally with the move exacerbated by reasonable short interest in the stock. MM is fortunate enough to hold 3 of the stocks in the top 10 between the portfolios. The losers were mostly contained with tech and gold names.

Broker Moves; Morningstar to a knife to their recommendations today however the market didn’t seem to take note, with Whitehaven (WHC) the only stock of the 5 to close lower.

  • BEN AU: Bendigo & Adelaide Downgraded to Sell at Morningstar
  • FMG AU: Fortescue Downgraded to Sell at Morningstar
  • GUD AU: GUD Holdings Downgraded to Hold at Morningstar
  • ORA AU: Orora Downgraded to Sell at Morningstar
  • WHC AU: Whitehaven Downgraded to Hold at Morningstar

OUR CALLS

No changes today

Watch out for the weekend report.

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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