Afternoon Report / What a week…markets cave in ~10%

By Market Matters 28 February 20

What a week…markets cave in ~10%

Market Matters Afternoon Report 28th February 2020

WHAT MATTERED TODAY

Wow, what a week,  it started on the back foot on Monday morning as the market came under significant pressure with the spread of the coronavirus outside of China, a void of buyers turned into a capitulation style move across the market today – simply all stocks were dumped as traders liquidated positions ahead of the weekend. For the week the ASX 200 dropped 9.77%, the total decline from the 7197 high set last Thursday has been -757pts / -10.5%, many stocks were down multiples of that number on the week, unsurprisingly headed by the travel stocks + the high beta IT style stocks which have taken a real bath. That said, there hasn’t really been anywhere to hide, gold stocks have even been hit hard with just 4 stocks out of the ASX 200 closing up on the week led by funeral provider Invocare, hardly a good omen!

It was end of month today and it’s hard to remember a more volatile start to a year, the ASX200 up +4.85% in January and now down -8.21% in February.  

Overall, the ASX 200 closed down -216pts or -3.25% today to 6441, Dow Futures are trading down -277pts/-1.08%.

ASX 200 Chart

ASX 200 Chart

CATCHING MY EYE;

Simply a week of red, the aggressive nature of the selling was extreme, with the volatility index ticking up to 39 overnight.

Volatility Index (VIX) Chart

Sectors this week:

Stocks this week:

BROKER MOVES;

·       AP Eagers Cut to Neutral at Macquarie; PT A$9.40

·       AP Eagers Raised to Overweight at JPMorgan; PT A$10.50

·       Ainsworth Game Raised to Outperform at Macquarie

·       Bank of Queensland Raised to Buy at Bell Potter; PT A$8.30

·       Bank of Queensland Raised to Equal-Weight at Morgan Stanley

·       Bank of Queensland Raised to Hold at Shaw and Partners

·       Ramsay Health Cut to Neutral at Citi; PT A$75

·       Afterpay Cut to Neutral at Goldman; PT A$37.70

·       NZ Refining Raised to Outperform at Jarden Securities

·       PolyNovo Cut to Market-Weight at Wilsons; PT A$2.25

·       Healius Cut to Hold at Morningstar; PT A$3.36

·       Domain Holdings Raised to Hold at Morningstar

·       Qube Raised to Hold at Morningstar

·       Metcash Raised to Hold at Morningstar

·       OZ Minerals Raised to Buy at Morningstar

·       Link Administration Raised to Outperform at Credit Suisse

·       Woolworths Group Raised to Hold at Shaw and Partners

·       Auswide Bank Cut to Hold at Bell Potter; PT A$6.90

·       Stanmore Coal Raised to Buy at Bell Potter; PT A$1.15

·       Pendal Group Raised to Neutral at Evans & Partners Pty Ltd

OUR CALLS

No changes to the portfolios today.

Major Movers Today

Have a great Weekend all

James, 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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