The Match Out: ASX rallies, IT leads the way, Go the Sea Eagles!

A bullish session for the market today with buyers emerging following a pullback in energy & material prices overnight. The IT stocks built on yesterday’s bounce to lead the line however there was support right across the industrial and financial sectors, while energy & materials gave back some recent gains. In terms of index contribution, the big 4 banks added ~34 pts while BHP, RIO & FMG took ~30 pts off.

More importantly, Manly kicks off the NRL season tonight playing the Panthers at the foot of the mountains. Go the Sea Eagles!

• The ASX 200 finished up +77pts/ +1.10% at 7130
• The IT sector was best on ground (+3.29%) while Consumer Discretionary (+2.85%) was also strong.
• Energy (-2.48%) and Materials (-1.78%) the weakest links however they actually held up better than their overseas counterparts.
• Banks had a great session today, up between 2-4% a piece
• Oil & Gold prices down overnight while Iron Ore fell 2.5% in Asia today – the commodity complex gave back some recent strength.
• Woodside (WPL) -4.67%, Santos (STO) -2.47%, Beach Energy (BPT) -5.9%.
• Wait for it….Myer (MYR) +24.39 reported 1H results and rallied today, the business showing signs of improvement.
• The travel stocks benefitted from a weaker Oil price, Qantas (QAN) +5.79% was solid while Flight Centre (FLT) +6.6% was the star.
• Paladin (PDN) +11% rallied on Uranium price strength which printed US$53 overnight. Clearly a mistake selling PDN last week.
• Nickel Mines (NIC) -13.17% universally downgraded by brokers
• After 25 years at the RBA, Deputy Governor Guy Debelle is leaving to become the CFO of Fortescue Futures Industries
• Iron Ore was up down 2.5% in Asia
• Gold was hit overnight and fell another US$13 in Asian today, to be around $US1980 at our close
• Asian stocks were all higher, Hong Kong up +0.87%, Japan +3.72% while China was up +1.76%
• US Futures are all down a touch  

Myer (MYR) 51c

MYR +24%: reporting their first-half results for 6 months to 29 January, the department store surprised to the upside for the first time in a while. Profits were up 55% on last year after stripping out job keeper, with sales +8.5%. They’ll pay a dividend for the first time since FY17 as well, giving 1.5c back to shareholders. The customer-first strategy is working (imagine that) with an improved online experience and a more targeted and leaner in-store experience helping lift sales. The second half has started strongly as well with sales up more than 15% for the first 5 weeks, comping at a better rate than the first half shows solid momentum in the turnaround.

Broker Moves

• Centuria Industrial Raised to Buy at Moelis & Company; PT A$4.12
• Australian Finance Rated New Buy at Barclay Pearce Capital
• Bega Cheese Raised to Buy at UBS; PT A$5.40
• Nickel Mines Cut to Hold at Ord Minnett; PT A$1.60
• Nickel Mines Cut to Neutral at Credit Suisse; PT A$1.35
• Nickel Mines Cut to Underperform at Jefferies
• Sandfire Rated New Neutral at Barrenjoey; PT A$6
• OZ Minerals Rated New Neutral at Barrenjoey; PT A$26
• 29Metals Rated New Underweight at Barrenjoey; PT A$2.05
• Breville Rated New Neutral at Barrenjoey; PT A$25

Major movers today

Enjoy your night

The Market Matters Team