The Monday Report – 14 September 2020

Daily Market Reports | Sep 14 2020

By Greg Peel

More of the Same

Wall Street had opened higher on Thursday night but this seemed only to provide an opportunity for slow movers to sell, leading to another down-session. The ASX200 thus dutifully dropped -70 points in the first ten minutes on Friday, as the algos led the way. But then a funny thing happened.

The index may have still closed down -50 points, with all bar one sector closing in the red, but it does suggest there is some tentative buying out there. A +0.5% gain for healthcare, led by market cap heavyweights CSL ((CSL)) and Cochlear ((COH)), provided a lonely but influential offset to the wider market. The banks, as usual, were the biggest drag (-1.2%).

Energy fell -1.8% on lower oil prices while in materials, BHP Group ((BHP)) was swept into the furore over Rio Tinto’s ((RIO)) lack of respect, leading to three director executions, as it scrambles to ensure it doesn’t make the same mistake. Materials fell -1.3%. Gold miners have gone a little quiet now.

IT of course fell with the Nasdaq (-2.0%) but is also now impacted by competition heating up in the BNPL space, taking the gloss of those previous high-flyers.

Other sectors all fell less than -1%.

There was no pattern in Friday’s top five index winners and losers among individual stocks.

National Bank’s ((NAB)) CEO told a parliamentary inquiry on Friday why it’s now too risky to invest in coal and the rewards are all in renewables, and then Whitehaven Coal ((WHC)) rallied 5.9% to win the day. Nearmap ((NEA)) came back on the boards after a capital raising and fell -14.9% to lose the day. Nearmap was as at last week 7.3% shorted.

Base metal/mineral miners appeared on both sides of the ledger.

Melbournians will now be allowed to stay out to 9pm! It’s like being 13 all over again.

The announcement had been expected, along with an hour’s extra exercise, so is unlikely to make any great impact on the market today, other than to suggest a small step in the right direction.

To that point, with Wall Street rocking and rolling on Friday night but the S&P500 ultimately closing flat, our futures were up a bold 4 points on Saturday morning.

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