Stocks on the ASX To Watch This Week [6 June 22]

Stocks to watch this week

Henry Fung

Henry is a co-founder of MF & Co. Asset Management with over 15 years of experience as a trader, investor and asset manager. Henry runs the Options Income Strategy and has a free 5-day options income strategy course you can take to learn how to use options to generate income.

June 6, 2022

Please note that any research that we publish does not take timing into consideration. We may publish research for a stock that we believe is of good quality but not necessarily trading at a discount or at a technical level for a high probability entry. If you would like to maximise your returns with optimised entry, exit and stop loss levels, check out our High Conviction Report.

The Australian markets continued their two-week winning streak by closing in the green on Friday.

Staying loyal to the prevailing themes, the market gyrated as inflation, recession fears, rate hikes, and events in China dictated its direction and pace.

Sectorally, Metals and Energy accounted for most of the market’s gains.

The ASX200, ASX300, and ASX Ordinaries closed higher by 0.78%, 0.75%, and 0.8%.

Last Week ASX In Stocks

ASX Materials Sector (ASX:XMJ)

The ASX Materials Sector (ASX:XMJ) had a solid week gaining 3.83% as China continued to ease off on COVID restrictions.

Major miners BHP (ASX: BHP), Rio Tinto (ASX: RIO), Fortescue Metals (ASX:FMG), and South32 (ASX:S32) ended higher by 5.67%, 1.1%, 8.32%, and 5.6%.

However, investors took new energy miners to the cleaners, and IGO (ASX:IGO), Allkem (ASX:AKE), Lynas Rare Earths (ASX:LYC), Liontown Resources (ASX:LTR), Mineral Resources (ASX:MIN), and Pilbara Minerals (ASX:PLS) slumped by 2.11%, 16.6%, 2.15%, 8.96%, and 20.52% respectively.

The trigger – bearish medium-term consensus issued by major institutions.

Gold miners Northern Star Resources (ASX:NST), Evolution Mining (ASX:EVN), and Gold Road Resources (ASX:GOR) closed up 0.46%, 1.89%, and 3.79% on upbeat gold prices.

ASX Energy Sector (ASX:XEJ)

The ASX Energy Sector (ASX:XEJ) also closed strong gaining 4% for the week.

Sector heavyweights Woodside Energy (ASX:WDS), Santos (ASX:STO), and Beach Energy (ASX:BPT) ended up 5.05%, 0.48%, and 11.29%.

Beach Energy’s outperformance was driven by solid guidance and a trading update highlighting substantial capacity growth over the next two years.

Coal snapped back with Whitehaven Coal (ASX:WHC), New Hope Corporation (ASX: NHC), Yancoal (ASX:YAL), and Coronado Global (ASX:CRN) closed higher by 6.08%, 5.14%, 3.02%, and 0.47%.

Australian coal miners focussed on exports to China clearly had the upper hand.

ASX Industrials Sector (ASX:XNJ)

The ASX Industrials Sector (ASX:XNJ) closed up by a comparatively modest 0.89%, much in line with the broader market.

Declining new home sales and softer property values hurt construction materials makers Boral (ASX:BLD), ADBRI (ASX:ABC), and Brickworks (ASX:BKW) which closed down 5.79%, 4.61%, and 4.25%.

Industrial majors Amcor CDI (ASX:AMC), Reece (ASX: REH), and Brambles (ASX:BXB) also closed in the red by 0.70%, 1.42%, and 1.62%, while Reliance Worldwide (ASX:RWC) ended up 1.91%.

Infrastructure majors Transurban Group (ASX:TCL) and Qube Holdings (ASX:QUB) ended at 2.2% and 1.34% in the green while airlines Qantas (ASX:QAN) and Air New Zealand (ASX:AIZ) closed at 0.90% and 3.31% in the red.

You may also like...
5 Best Dividend Stocks to Buy [ASX Blue Chip Stocks 2022]

ASX Financials Sector (ASX:XFJ)

The ASX Financials Sector (ASX:XFJ) was an underperformer this week as it lost 1.30%.

ABS data showed a decline in home loan commitments, both from buyers and investors, sparking fears of a slowdown in a major revenue source for banks.

Over the week, ANZ was pulled up by the ASIC for allegedly misleading credit card customers.

The major banks Commonwealth Bank (ASX:CBA), National Australia Bank (ASX:NAB), Australia New Zealand Bank (ASX:ANZ), and Westpac (ASX:WBC) all closed lower by 1.55%, 1.61%, 3.33%, and 0.7% respectively.

Smaller banks Bendigo Adelaide (ASX: BEN) and Bank of Queensland (ASX:BOQ) followed suit and were down 0.09% and 0.66%.

Wealth managers Magellan Financial (ASX:MFG) and Platinum Asset Management (ASX:PTM) ended 1.65% and 2.17% in the red though AMP Ltd. (ASX:AMP) gained 1.36%.

Lastly, insurance providers Insurance Australia Group (ASX:IAG), QBE Insurance (ASX: QBE), and Suncorp (ASX: SUN) also gave up 4.91%, 3.69%, and 9.78%.

ASX Consumer Discretionary Sector (ASX:XDJ)

The ASX Consumer Discretionary Sector (ASX:XDJ) continued its slide from last week, ending lower by 1.50%.

Entertainment and Hospitality companies Crown Resort (ASX:CWN) and Star Entertainment (ASX:SGR) ended lower by 0.39% and 3.91% while travel-focused ones such as Webjet (ASX:WEB) and Corporate Travel Management (ASX:CTD) closed up 0.33% and 0.55%; however, Flight Center (ASX:FLT) was down 1.34%. Retailers Temple and Webster (ASX:TPW), Nick Scali (ASX:NKS), Harvey Norman (ASX:HVN), and JB HiFi (ASX:JBH) were negative by 1.10%, 3.19%, 0.90%, and 1.58%; however, Breville (ASX:BRG) ended up 1.1%, possibly because of its growing sales to China.

Food brand Dominos (ASX:DMP) ended down 4.96% while gambling-focused companies Aristocrat Leisure (ASX: ALL) and Lottery Corporation (ASX: TLC) were 2.3% and 8.36% in the red.

ASX Consumer Staples Sector (ASX:XSJ)

The ASX Consumer Staples Sector (ASX:XSJ) edged into the green at 0.36%. Sector heavyweights Coles Group (ASX:COL) and Woolworths (ASX:WOW) were up 0.28% and 0.55% while Wesfarmers (ASX:WES) ended 0.56% down.

Food producers Tassal Group (ASX:TGR) and Costa Group Holdings (ASX:CGC) closed 1.65% and 3.53% up while Bega Cheese (ASX:BGA) ended 0.21% down.

Among milk food makers A2M Milk (ASX:A2M) gained 6.01%, but Bubs Australia (ASX:BUB) collapsed by 20.65% despite its huge US order.

ASX All Technology Sector (ASX:XTX)

The ASX All Technology Sector (ASX:XTX) continued to be the market’s whipping boy closing lower by 2.56%.

Platform companies REA Group (ASX:REA), Carsales.com (ASX:CAR), and RedBubble (ASX:RBL) ended 2.04%, 1.74%, and 3.06% down.

SaaS players Xero (ASX:XRO), Appen (ASX:APX), and Nuix (ASX:NXL) closed 5.42%, 1.54%, and 2.50% down while Wisetech Global (ASX:WTC) ended up 1.13%.

BNPL players Block (ASX:SQ2), Zip Co. (ASX:Z1P), and MoneyMe (ASX:MME) were beaten down 4.97%, 11.17%, and 6.61% in the continuing meltdown in this space.

Semiconductor manufacturer Altium (ASX:ALU) closed down 0.55% while data center operator NextDC (ASX:NXT) ended 1.43% lower, both continuing their relative outperformance.

ASX Healthcare Sector (ASX: XHJ)

The ASX Healthcare Sector (ASX: XHJ) edged into the red at 0.47%.

You may also like...
Stocks on the ASX To Watch This Week [9 May 22]

Healthcare providers Ramsay Healthcare (ASX:RHC) and Healius (ASX: HLS) closed lower by 1.35% and 10.75% while Fisher and Paykel (ASX:FPH) ended higher by 4.19%.

Healthcare equipment makers Cochlear (ASX:COH), Sonic Healthcare (ASX:SHL) and CSL Ltd. (ASX:CSL) closed down by 1.7%, 3.40%, and 1.15%; on the other hand, ResMed CDI (ASX:RMD) ended 0.48% higher.

Biotech firms Imugene (ASX:IMU) and Mesoblast (ASX:MSB) lost a chunky 10.53% and 10.89% each.

ASX Telecommunications Sector (ASX:XTJ)

The ASX Telecommunications Sector (ASX:XTJ) ended down 1.07%. Majors Telstra (ASX:TLS) and TPG Telecom (ASX:TPG) ended down 0.25% and up 2.93%, respectively.

Smaller players Chorus (ASX:CNU) and Uniti (ASX:UNW) closed down 0.3% and up the same, respectively.

Telecom infra player Spark (ASX: SPK) ended up 0.93%.

ASX Real Estate Sector (ASX:XPJ)

The ASX Real Estate Sector (ASX:XPJ) gave up 0.74%. Statistics showed slowing loan commitments and a slight decline in property prices across major markets like Sydney, Canberra, and Melbourne for the first time since the pandemic .

Industrial players like Goodman Group (ASX:GMG) and Dexus (ASX:DXS) closed 0.40% up and 1.04% down, respectively.

Retail players such as Scentre (ASX:SCG) and Mirvac (ASX:MGR) were down 3.75% and 0.89%.

ASX Utilities Sector (ASX:XUJ)

Lastly, the ASX Utilities Sector ended 4.71% lower at the end of a very eventful week.

Sector heavyweights APA Group (ASX:APA) and Origin Energy (ASX:ORG) declined 1.78% and 10.47% while AGL Energy (ASX:AGL) was up 0.34%.

In major news from the sector, Origin Energy revised guidance downwards by about 25% citing coal supply constraints.

Secondly, AGL shareholders officially voted against the demerger of its generation and distribution businesses, in turn leading to the demerger of several members from the company’s board.

This Week In ASX Stocks

No meaningful earnings announcements are due for next week.

New Listings

NameDateTickerAmountPrice/ShareOperations
Kingsland Minerals8th JuneKNGA$5.5MA$0.20Exploration and Development of Copper, Uranium, Gold, Nickel, and Cobalt Assets in Australia
Southern Palladium8th JuneSPDA$19MA$0.50Exploration and Development of Palladium, Platinum, and Rhodium assets in South Africa
Cavalier Resources10th JuneCVRA$7MA$0.20Exploration and Development of Gold and Nickel Assets in West Australia

Economic and Market Outlook

The economic activity in Australia over the week was bittersweet.

On one hand, better than expected GDP growth in the quarter ending March of 0.8% was received enthusiastically by the market; on the other, a slowing real estate market was cause for concern.

Retail sales published last week were strong, strengthening the RBA’s case for rate hikes to control inflation.

Markets are currently factoring a 40 basis point hike at the next meeting.

The US reported better than expected non-farm payrolls along with unemployment steady at 3.6%.

Fed vice chair Lael Brainard expressed her confidence in the economy and said she expected another 50 basis points in rate hikes through September.

The Bank of Canada stunned markets by hiking rates to 1.5%, and hinted at more hikes along the way.

You may also like...
5 Best Shares To Buy Right Now in 2022 [Undervalued Stocks ASX]

Markets rejoiced that China appeared to be making clear progress towards reopening with Shanghai emerging from lockdown and pockets of Beijing opening up.

The Chinese government also made stimulus moves – these included expedited permits for construction and cash incentives for hiring fresh graduates.

The effects of its lockdown policy are now clearly emerging in the form of lower economic growth projections by leading banks and high inflation.

Over the week, Goldman Sachs joined JP Morgan, Citi and UBS in cutting their GDP growth forecast to 4% from the previous estimate of 4.5%.

While signs of a recovery are underway as shown by the manufacturing PMI growing 4.76% and services PMI growing 14.1%, China’s Producer Price Index came in at a higher than expected 8%, underlining inflation fears.

In Europe, leaders confirmed plans to halt at least 90% of oil purchases from Russia by year-end.

OPEC subsequently announced that it will hike production to meet the shortfall, but oil prices continued to stay elevated.

Next week will see the RBA’s Interest Rate Decision and Statement on Tuesday followed by UK Composite and Services PMI later the same day.

The UK Construction PMI report follows on Wednesday.

On Thursday, a host of data is scheduled from the ECB including the Deposit Facility Rate, Marginal Lending Rate, Monetary Policy Statement, and lastly, the all-important Interest Rate Decision.

Later in the day, the US puts out Crude Oil Inventories and Initial Jobless Claims.

Lastly, US Core CPI (MoM) for May releases on Friday.

Forex Outlook

AUD/USD

AUD/USD closed the week at 0.72066, well above the previous weekly close of 0.71565.

The AUD/USD was boosted by Australia’s better than expected GDP print of 0.8% for the March quarter, solid trade data, as well as strong retail sales growth of 0.9% that touched a record of A$33.9 billion.

These enable a more hawkish attitude from the RBA; however, a hike of 0.40% may be already factored in.

China’s recent moves to ease lockdowns in China also aided sentiment in favour of the Aussie, given the strong trade relationship between the two countries.

However, on the last day of the week, the pair was under pressure with the dollar index rebounding from lows of 101.299 and showing signs of putting its recent correction behind it.

Bulls may also have taken some profits off the table in view of impending US non-farm payroll data.

The macroeconomic odds are turning in favour of AUD/USD, however, and an upside break of 0.72800 could give a strong tailwind to the pair.

AUD/NZD

AUD/NZD ended the week at 1.10733, well above the previous week’s close of 1.09436.

Robust, better-than-expected March quarter GDP growth numbers out of Australia of 0.8% (quarter-on-quarter) and 3.3% (year-on-year) encouraged a bullish trajectory for AUD/NZD last week.

Also helping were trade data and a record retail sales print that showed Australians were welcoming post-COVID times with wallets at the ready.

AUD/NZD has taken off from a support zone in 1.09200 – 1.09300, but is now confronted by a solid resistance area at 1.10800 – 1.11100.

However, the current momentum may enable it to take that zone out, and if that happens, 1.11800 may soon be the new bulls-eye for the pair.

Keep in mind that we publish research on stocks that are not necessarily trading at a discount or at a preferable technical level. If you want to maximise your returns by optimising your entry price, exit price and stop loss level, check out our High Conviction Report.

Are you still looking for the best stocks to buy in 2022? We’ve put together a free report on 5 stocks that we think are the best buys on the ASX right now. Download it instantly here.

This is general advice only. MF & Co Asset Management has not considered your personal financial needs, objectives or current situation. This information is not an offer, solicitation, or a recommendation for any financial product unless expressly stated. You should seek professional investment advice before making any investment decision.

You May Also Like…

Subscribe

Want more Free Research?

Subscribe today for free and get an email with stocks to watch every Monday and new research every Thursday.

Invalid email address
We promise not to spam you. You can unsubscribe at any time.

Testimonials

What People are Saying...

See what people are saying about our research, products and services.

Timely advice, very informative and well researched.Very positive from a share trading view.
Brendon Beattie
Brendon Beattie
00:14 02 May 22
Nice reporting, thank you
useful
Christophe Dussert
Christophe Dussert
07:16 23 Aug 21
Exceptional information that is concise and insightful. Keep up the great work !!!
BRIAN MINOTTO
BRIAN MINOTTO
09:19 19 Aug 21
I feel MF and Co are very informative with their advice and recommendations.
Norman Wilkins
Norman Wilkins
08:00 19 Aug 21
Good service with frequent emailed share suggestions.
Peter Farrell
Peter Farrell
03:39 19 Aug 21
Even I never trade with MF&Co, I watch all of Henry's review and analysis, very impressed with the accuracy and... objective of those thoughts.Of course no one can say what the future will be, but at least when reading those reviews, we know where we are, then sometimes that is the best thing that you can wish for.read more
Vu Nguyen
Vu Nguyen
23:44 15 Aug 21
Excellent service, not pushy, clear reporting highly recommended
Luke Stewart
Luke Stewart
23:25 15 Aug 21
Some very useful research
Richard Goodwin
Richard Goodwin
04:33 13 Aug 21
I very much appreciate the profound stock market research and the peceived honesty.
Quentin Steinbeck
Quentin Steinbeck
16:10 11 Aug 21
Easy to understand research for “dummies guide to shares trading”
Graham Ko
Graham Ko
15:30 09 Aug 21
Easily some of the most worthwhile research presented without any bias.
Tony Miller
Tony Miller
01:06 07 Aug 21
Nice free report with a good stock pick tip. Thank you.
QuincysLife
QuincysLife
00:17 06 Aug 21
i subscribed to the free research report and i found it very informative and useful for making investing decisions. I’m... looking forward to meet advisers in person when lockdown eases to learn futures options trading and to join trading education courses. Thanks for providing company reports for gratis 🙏read more
Rahul Newar
Rahul Newar
13:37 05 Aug 21
Excellent…..highly recommend
meltem247
meltem247
12:05 05 Aug 21
Henry's website is an absolute Treasure of Insightful Financial AdviceFree, Honest & Profitable!
Jonathan Meader
Jonathan Meader
11:37 05 Aug 21
I follow every recommendation and they are always a winner.
Peter Logiotatos
Peter Logiotatos
08:37 05 Aug 21
Great info, has helped in choosing some quality stocks to invest in and have had great results from those investments.
Stuart Farnworth
Stuart Farnworth
07:54 05 Aug 21
You can rarely find relevant, dedicated, and most importantly, free research as good as the ones published here.
梁坤佑
梁坤佑
07:26 05 Aug 21
Excellent and balanced with great knowledge
Peter Cryan
Peter Cryan
06:53 02 Aug 21
Great research and useful information for current market situation and potential buys.
May Deng
May Deng
06:04 02 Aug 21
great knowledge base and excellent research.
colin blanch
colin blanch
00:56 02 Aug 21
I am registered only on the free advice, I have found their advice to be so much more complete compared to other sites... which you have to pay for, it is timely and does not seem to be a shotgun approach as many sites seem to do so that some time in the future they can cherry pick their good results. For me 1 or 2 shares a week is so much more meaning to me for my style of investment, do I recommend MF& co, I sure do.read more
Phil O'Leary
Phil O'Leary
00:39 02 Aug 21
Ideas and complimentary assessments are informative, interesting and easy to read. They are sometimes 'out of box' in... thinking. To me, they install trust.read more
Grahame Cox
Grahame Cox
00:30 02 Aug 21
Informative information and well researched
David Bailey
David Bailey
00:12 02 Aug 21
Great research into current trends and foresight into what to watch for the future
Yumna
Yumna
00:03 02 Aug 21
js_loader

MF & Co. Asset Management

MF & Co. Asset Management is a boutique investment firm offering Equity Capital Markets and derivative general advice & trade execution services.

We are specialists in advising and trading in Australian and US Equities, Index & Equity Options and Options on Futures.

Contact

Get In Touch

Australia
1300 889 603
International
+61 2 8378 7199
M-F: 8am-5pm

Level 29, Chifley Tower
2 Chifley Square, NSW 2000

 

Share This