The Match Out: ASX higher into the weekend, Regal (RPL) grows FUM, IT stocks outperform

The daily Match Out for Friday 24 February with Market Matters' James Gerrish.
James Gerrish

Market Matters

A positive session to end the week as IT stocks bounced back offsetting continued weakness amongst the miners – a topic we discuss this morning in What Matters Today – Click Here. Overall, the week was a soft one (-0.56%) dominated by company results, a lot of moving parts in the market at the moment however earnings have been okay, not a disaster as many suggested, while the focus at the macro at least remains around the trajectory of interest rates.

  • The S&P/ASX 200 put on +21points / +0.30% to close at 7307.
  • IT (+2.39%), Industrials (+1.40%) & Consumer Discretionary (+1.22%) the best of them.
  • Materials (-1.22%) the only sector to finish in the red.
  • Brambles (ASX: BXB) +7.46% upgraded its full-year profit forecasts saying the company’s scale enabled it to pass on inflationary costs to customers, pallet prices increased by 14%.
  • Block (SQ US) +1.16% was higher after Q4 gross profit was $US1.66bn v consensus of $US1.63bn - they said Afterpay was still growing and bad debts were under control – and will not rise materially.
  • Star Entertainment (ASX: SGR) Halted - successfully raised $595m in a placement and insto entitlement offer at $1.20 – Ouch!
  • Regal Partners (ASX: RPL) -1.26% was hit early before recovering as they announced FY results – some in the market saying they could turn their attention to Magellan (MFG) after missing out on Perpetual (PPT).
  • Iron Ore was down a touch in Asia, off -0.7%, Coal out of Newcastle was flat.
  • Gold was subdued, +US$2 to $US1825 at our close.
  • Asian stocks were mixed, Hang Seng was down -1.5%, the Nikkei in Japan put on +0.95%, while China fell -1%
  • US Futures are down a touch

ASX 200 Chart - intraday

ASX 200 Chart - daily

Regal Partners (ASX: RPL) $3.14

RPL -1.26%: full-year results for the fund manager today, shares closed slightly lower on a volatile session. The numbers were solid, if not a little messy given the acquisition of VGI Partners in the middle of the year. FUM ticked higher, seeing $0.7b of net inflows, partly offset by $0.2b of negative performance in the second half. They still managed to gain $14.5m in performance fees despite difficult market conditions, positive 2H NPAT of $18.2m. The balance sheet is in great shape, even after the acquisition of East Point which they picked up earlier this month. Regal are doing a good job of growing organically and through M&A, we expect to see further consolidation in the space which will benefit RPL.

Sectors this week – Source Bloomberg

Stocks this week – Source Bloomberg

Broker Moves

  • Nanosonics Raised to Neutral at Evans & Partners Pty Ltd
  • Costa Cut to Neutral at Jarden Securities; PT A$2.60
  • 29Metals Raised to Reduce at CLSA; PT A$1.90
  • Maas Group Cut to Accumulate at CLSA; PT A$3.10
  • Accent Group Raised to Accumulate at CLSA; PT A$2.25
  • Blackmores Cut to Neutral at Credit Suisse; PT A$81
  • HMC Capital Raised to Outperform at Credit Suisse; PT A$4.90
  • Universal Store Cut to Neutral at Citi; PT A$5.75
  • Pilbara Minerals Raised to Buy at Jefferies
  • Gold Road Raised to Buy at Jefferies; PT A$1.75
  • Bega Cheese Raised to Reduce at CLSA; PT A$3.25
  • Kelsian Group Cut to Accumulate at CLSA; PT A$7.50
  • Qube Cut to Neutral at Credit Suisse; PT A$3.30
  • Capitol Health Cut to Neutral at Credit Suisse
  • Ramsay Health Raised to Equal-Weight at Morgan Stanley
  • Iluka Raised to Neutral at Citi; PT A$11.50
  • Blackmores Cut to Neutral at Evans & Partners Pty Ltd
  • Arafura Rare Earths Cut to Speculative Hold at Bell Potter
  • Propel Funeral Partners Cut to Hold at Moelis & Company
  • Reject Shop Raised to Add at Morgans Financial Limited
  • Bega Cheese Raised to Buy at Bell Potter; PT A$3.80

Major Movers Today

Enjoy your Weekend,

The Market Matters TeamEnjoy your Weekend

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James Gerrish
Portfolio Manager
Market Matters

James is Portfolio Manager & Primary Author at Market Matters, a daily investment report with over 2500 subscribers that offers real market insight. He is also Senior Portfolio Manager within Shaw and Partners heading up a team that manages...

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