The Match Out: ASX opens with a bang, ends with a whimper…

A similar sort of session to yesterday played out today with the best of it seen early, although we started from a higher level with strong buying on open seeing the index +60 points not long after the bell, before sellers emerged cutting those gains in half.

• The ASX 200 finished up +27pts/+0.39% to 7015.
• The Property sector (+1.48%) was the standout, while Consumer Staples (+0.62%) and Consumer Discretionary (+0.60%) finished higher.
• Energy (-1.01%), IT (-0.42%) and Utilities (-0.09%) struggled.
• Retail sales came in softer than tipped in October, down -0.2% from September, missing forecasts of a 0.1% rise
• Clearly higher borrowing costs are starting to bite in retail land as consumers tighten their belt.
• Weaker data reduces the chance of further interest rate hikes, now only around 16bps of tightening priced in by futures.
• PointsBet (ASX: PBH) +5.48% was strong after confirming they were on track to deliver revenue growth of between 10-20% in FY24.
• Imugene (ASX: IMU) +9.89% rallied after being granted Fast Track designation from the US FDA for the clinical evaluation of its metastatic advanced solid tumours program against a new form of cancer.
• Collins Foods (ASX: CKF) +9.01% reported strong results and increased dividends, declaring 12.5c for the half.
• AGL Energy (ASX: AGL) -0.61% continued to dip taking their 5-month pullback to ~20% after a ~75% rally from the lows – a volatile ride. We continue to own a small position in our Active Income Portfolio. AGL’s CFO presented at a conference today and talked about future demand for electricity – they expect a doubling of demand for electricity between now and 2050 with electric vehicles underpinning a 30% increase in home electricity consumption.
• Link Administration Holdings (ASX: LNK) +4.2% was up on positive AGM commentary, winning new business and on track for a strong 1H. They upgraded FY24 guidance for revenue growth of more than 6.5% and EBIT growth of 7-9%, up from at least 6%.
• Gentrack (ASX: GTK) +9.85% hit 4-year highs as the billing and customer management software business released strong FY23 results, Revenue +7% above the midpoint of guidance and EBITDA beat by 12% at $24.6m. FY24 guidance was also positive underpinning a very strong move in their shares.
• Plenti (ASX: PLT) +64.71% ripped after signing a deal with NAB for co-branded EV and Renewable Energy loans. We wonder what this means for the alternative financing sector of the market, banks may now be looking for their share of the pie.
• Orora (ASX: ORA) +2.43% upgraded at Morgan Stanley to buy equivalent and $3.50 PT, this is our latest purchase in the Active Income Portfolio, switching out of Wesfarmers (WES).
• Iron ore fell, futures down 2% in Singapore to $US131/mt, although Fortescue (FMG) +1.5% bucked the trend.
• Gold edged higher, now trading US$2015/oz at our close. Evolution (EVN) +2.93% was outshone by Northern Star (NST) +3.5%, two stocks we hold in the Growth Portfolio.
• Asian stocks were mixed, Hong Kong -0.12%, Japan -0.87% while China +0.04% edged higher.
• US Futures are little changed.

ASX 200 Intraday

ASX 200 Daily

Broker Moves

• Clean Seas Seafood Cut to Hold at Bell Potter
• PeopleIN Ltd Cut to Market-Weight at Wilsons; PT A$1.39
• Life360 GDRs Rated New Buy at Ord Minnett; PT A$8.84
• Meteoric Resources NL Rated New Speculative Buy at Canaccord
• Orora Raised to Overweight at Morgan Stanley; PT A$3.50
• Service Stream Reinstated Accumulate at CLSA; PT A$1
• Aeris Resources Cut to Neutral at Macquarie
• Monadelphous Reinstated Reduce at CLSA; PT A$14.40
• NRW Holdings Reinstated Buy at CLSA; PT A$2.90
• Perenti Reinstated Buy at CLSA; PT A$1.50
• Downer EDI Rated New Reduce at CLSA; PT A$4.15

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