The Match Out: China data knocks ASX, October the worst month since January 2022

• The ASX 200 finished up +6pts/ +0.1% to 6779
• Real Estate (+1.06%) was best on ground today. Staples (+0.84%) and Financials (+0.68%) provided reasonable support to the cause as well.
• Materials (-1.08%) was the weakest sector today, Tech (-0.65%) and Utilities (-0.34%) were the only other sectors lower today.
• China data put further pressure on our market, particularly on Materials which struggled after a weaker print. October’s Manufacturing PMI swung into contractionary territory at 49.5 vs 50.2 expected. Non-manufacturing PMI was still marginally expansionary (above 50), though short of expectations, printing 50.6 vs 52 expected.
• Bank Of Japan (BOJ) left policy rates on hold, the global anchor of low rates holding firm at -0.1%. The commentary was also markedly more dovish than expectations despite increasing 2024 inflation forecasts, though the central bank has lifted the 1% cap on 10-year bonds, now using that level as a “reference rate” to increase flexibility.
• Inghams (ASX: ING) +7.92% hit 2-year highs following a decent trading update. The company said underlying metrics had improved while wholesale poultry prices were trending higher, forecasting around $71m in underlying NPAT for the 1st half vs consensus of $90m for FY24. They did note a 1st half skew is to be expected.
• Origin (ASX: ORG) -0.44% largest shareholder AusSuper (~13.5% of shares) flagged they would vote against the Brookfield bid at $8.91/sh saying assumptions used in the Independent Expert report undervalued the business. Shares are trading above the bid price suggesting AusSuper isn’t alone in that view.
• Treasury Wines (ASX: TWE) halt, raising funds to buy US premium wine brand Daou for $US900m. More on the deal in tomorrow’s Morning Report, we own TWE in the Active Growth Portfolio.
• Data#3 (ASX: DTL) -5.18% CEO/MD Laurence Baynham will depart the company early next year after being with Data#3 for 29 years, 10 of those in the corner office.
• Iron Ore was up 0.25% in China today. That gain was not reflected in the related equities.
• Gold fell -0.1% today, holding back below $US2,000/oz at $US1,995/oz. Gold stocks were markedly weaker than the precious metal’s move, Northern Star (ASX: NST) -3.31%.
• Indices in the region were also weaker today. Nikkei -1.06%, Hang Seng -0.5% and China flat at the time of writing
• US Futures point to a soft end to the month overnight. S&P500 futures -0.4% and Nasdaq futures -0.6%.

ASX200 Index

Sectors in October

Stocks in October

Broker moves

• Reece Rated New Sell at UBS; PT A$15.80
• Transurban Raised to Neutral at Goldman; PT A$13.10
• Paladin Energy Raised to Neutral at Citi; PT 95 Australian cents
• Pantoro Cut to Sell at Bell Potter; PT 3 Australian cents
• Sandfire Rated New Overweight at Wilsons; PT A$8.45
• IGO Cut to Reduce at CLSA; PT A$10
• Ramelius Cut to Neutral at Macquarie; PT A$1.70
• GWA Group Raised to Buy at CLSA; PT A$2.15
• Ventia Services Cut to Accumulate at CLSA; PT A$2.90
• IGO Raised to Equal-Weight at Morgan Stanley; PT A$9.25
• CSR Raised to Hold at Jefferies; PT A$5.20
• IGO Raised to Neutral at JPMorgan; PT A$10
• Endeavour Group Raised to Overweight at JPMorgan; PT A$5.90
• Endeavour Group Raised to Buy at Jefferies; PT A$6.50
• Endeavour Group Raised to Accumulate at CLSA; PT A$5.25
• IGO Cut to Neutral at Citi; PT A$13

Major movers today

The Market Matters Team

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