The Match Out: Iron ore continues to rally, shares storm higher into the weekend

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The stars aligned for a strong finish to the week, and the ASX delivered with its best one-day rally in more than 8 weeks today. All sectors were higher today, led by a resurgent materials sector thanks to strong commodity prices. It was a very broad-based rally today with 80% of the ASX200 finishing higher with money keen to pile into the market. The index posted a gain of 122pts/+1.71% this week, recouping the losses of last week.

• The ASX 200 added +92pts/ +1.29% to 7279.
• The Materials sector was best on ground (+2.54%) while Tech (+1.93%), Energy (+1.68%) & Consumer Discretionary (+1.09%) were also notable gainers.
• While still closing higher today, Utilities (+0.28%) and Healthcare (+0.29%) were the key laggards.
• Data out of China was strong as Industrial production (+4.5% YoY) and Retail Sales (+4.6% YoY) were better than expected, further supporting the rally, particularly in China-facing stocks. The buying followed on from yesterday’s surprise stimulus in the form of a cut to the Reserve Requirement Ratio (RRR)
• Metcash (ASX: MTS) -0.54% hosted their AGM today. Sales YTD were up +6% for food ex-tobacco, +3.2% for Hardware and +1.7% for Liquor. Tobacco sales (-11%) have been impacted by illicit trade while further signs of consumer weakness have been noted despite the growth so far in FY24.
• Novonix (ASX: NVX) +37.96% continues to surpass targets at their Tennessee battery facility with costs, volumes and sustainability numbers in line with expectations, lifting production capacity targets.
• QANTAS (ASX: QAN) +0.36% took another hit, the ACCC rejecting their collaboration with China Eastern today.
• Telco data showed Telstra and TPG are losing market share, mostly to Aussie Broadband (ASX: ABB) and Vocus.
• Iron Ore rallied a further 1.51% in Asia today taking Rio to a one-month high, up 3% in the session.
• Gold was up 0.4% to US$1919 at our close, most gold stocks enjoyed the move.
• Asian stocks were mostly higher, Hong Kong +1%, Japan +1.1% while China was off -0.50%
• US Futures are higher, all by around 0.2%

ASX 200 Index

Sectors this week – Source Bloomberg

Stocks this week – Source Bloomberg

Broker Moves

• Clean Seas Seafood Rated New Buy at PAC Partners
• Monadelphous Raised to Overweight at Jarden Securities
• Myer Cut to Reduce at CLSA; PT 64 Australian cents

Major Movers Today

Enjoy the night
The Market Matters Team

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