The Match Out: A positive start to the week for the ASX, Super Retail (SUL) rallies on trading update

The local market kicked off the week on the front foot, continuing the momentum seen since the turn of the New Year to push into a new 8-month high. It was a broad-based rally with all sectors in the green and 4 sectors up more than 1% led by a surging tech sector. Materials were one the laggards, mostly on the back of weakness in iron ore stocks as China flagged a potential response to the surging price of the commodity.

• The ASX 200 finished up +60pts/ +0.82% at 7388
• The Tech sector was best on ground (+1.82%) while Energy (+1.47%), Healthcare (+1.42%) & Industrials (+1.09%) were also strong.
• While no sector closed lower, Utilities (+0.09%) & Materials (+0.24%) were the notable laggards.
• Super Retail Group (ASX: SUL) +7.68%, the star of the index today after the retailer provided a strong trading update. More on that below.
• Tyro (ASX: TYR) +6.93%, upgraded FY23 numbers and confirmed cost-out targets are being met which helped the stock rally today.
• Asian stocks were mixed, Nikkei & Hang Seng were lower while China markets rallied.
• US Futures are all up, though the S&P is the best of them and only 0.15% higher.

ASX 200 Chart

Super Retail Group (SUL) $12.34

SUL +7.68%: the retailer traded to a near 11-month high today after announcing preliminary 1H numbers. Sales were up 11% across the board on a like-for-like basis led by strength in Macpac, Supercheap and rebel, though some weakness in their BCF brand weighed. The company noted a significant drawdown in inventory, helping to reduce costs and improve margins. The company pointed to a strong Christmas trade and expects profit before tax (PBT) of $213-218m, a small beat to expectations.

Broker Moves

• Propel Funeral Partners Rated New Overweight at Morgan Stanley
• Dexus Cut to Underweight at Morgan Stanley; PT A$7.90
• CBA Cut to Underperform at Jefferies; PT A$91.30

No Major Movers Today

Have a great night

The Market Matters Team

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