The Match Out: ASX ends a solid week on the front foot

The market opened on the back foot, down early, before rallying ~50pts into the close to finish at session highs, clearly a bullish tone to end the week with the solid intra-day move. The lack of selling as December wears on is the theme we’ve been highlighting in recent reports with a few examples taking shape in recent sessions. We maintain our bullish bias targeting the 7400 level on the ASX 200.

• The ASX 200 finished up +21pts/ +0.30% to 7194
• The Energy sector (+1.04%) was higher, while Materials (+0.63%) & Healthcare (0.35%) outperformed.
• IT (-0.56%), Utilities (-0.15%) and Staples (-0.04%) the weakest links.
• For the week, the ASX 200 put on +1.72% with the Real-Estate sector the standout up +3.5%.
• Woodside Energy (ASX: WDS) -0.53% fell while Santos (STO) +6.15% rose on merger talk, although WDS is bigger so it would be more of a takeover sort of scenario if it played out.
• Ramsay Healthcare (ASX: RHC) +0.52% received FIRB approval to sell its 50-50 Asian joint venture to Columbia Asia Healthcare.
• Lithium stocks look to have bottomed, Pilbara (ASX: PLS) +3.63%, Mineral Resources (ASX: MIN) +2.9% & IGO +1.87% all rallied.
• The Fund Managers have had a good week on the back of Perpetual (PPT) +1.38% being bid for by Soul Patts, however Magellan (ASX: MFG) +2.56% also had a FUM update that implied good portfolio performance in November.
• Soul Patts (ASX: SOL) – 0.48% also hosted their AGM today, investment performance was a little soft to start FY23, -0.4% in the 3 months to October. The Perpetual (PPT) suitor has $469m in dry powder ready to invest and expects to see activity increase in 2024 – get active!
• Iron ore up ~2.4% in Asia to $US133.90,/mt supported by strong export data from China.
• Asian stocks were mixed, Hong Kong edged up 0.2%, Japan fell -1.8% while China added +0.43%.
• US Futures are pricing a flat open.
• Employment data due out in the US tonight, +183k jobs to be added with the unemployment rate stable at 3.9%.

ASX 200 index

Sectors this week (Source: Bloomberg)

Stocks this week (Source: Bloomberg)

Broker moves

• Gold Road Cut to Neutral at Macquarie; PT A$2
• Genesis Minerals Cut to Neutral at Macquarie; PT A$2
• Alumina Raised to Neutral at Macquarie; PT 80 Australian cents
• Regis Healthcare Raised to Buy at Ord Minnett; PT A$3.50
• Data#3 Rated New Overweight at Wilsons; PT A$9.09
• Aussie Broadband Rated New Positive at Evans & Partners Pty Ltd
• DYL AU Rated New Speculative Buy at Morgans Financial Limited
• Resolute Mining Rated New Buy at Panmure Gordon

Major movers today

Enjoy the night,

The Market Matters team.