G'day folks and welcome to another trading day with your friendly, neighbourhood CMC Market Analyst!
For real-time up-to-date data/news/research/ideas/strategies, check out our insights panel on the CMC Markets Invest platform and follow us on Twitter:
Azeem Sheriff - @Azeem__Sheriff
Tina Teng - @Tinateng_CMC
CMC Markets ANZ - @CMCMarketsAUSNZ
CMC Markets Singapore - @CMCMarketsSG
CMC Markets Canada - @CMCMarkets_CA
Trading Idea of the Day
ASX:FLT - Flight Centre Travel Group Ltd - BULLISH BIAS (long term) - BULLISH BIAS (short term)
- Key levels on the chart - consider taking trades from key support/resistance zones.
- Price is significantly undervalued and at a key support, a level not seen since the beginning of COVID.
- The reopening and pent-up travel demand narrative is only gathering momentum, with FLT expecting a gradual recovery in FY23 followed by a 'larger scale recovery during FY24' as the world opens up even more.
- Flight Centre's corporate travel segment has returned to pre-covid form based on their latest updates, contributing $58m to their underlying earnings. The company said corporate transaction levels are also back at pre-covid levels, with revenue at approximately 95% which is a positive sign for FY23 and shareholder expectations.
- Leisure bookings remain subdued, impacted by the 'lack of competition and spare capacity. The leisure segment lags as outbound travel remains impacted by a lack of competition and capacity, leading to a lack of bookings available and abnormal prices.
- Management expects revenue margins to remain below pre-covid levels over the forecast period but partially offset by cost margin improvements.
ASX & Economic Key Events
ASX Key Events Calendar (TODAY)
Economic Key Events (TODAY)
Economic Key Events (YESTERDAY)
OPTO For Investors Research
Article of the Day: Berkshire, Bridgewater and Tiger expand positions in chip stocks
Podcast of the Day: BlackRock’s Carolyn Weinberg on the democratising power of ETFs
APAC Daily Report
Click here to access our daily APAC report, prepared by my fellow market analyst @TinaTeng_CMC
Market Snapshot & Highlights as of 8:00am AEDT
EXPECTATIONS: Energy LOWER (lower oil prices) & Materials LOWER on overall lower commodity metal prices.
Global Markets Headlines
- Disney blindsided Chapek with CEO move after contacting Iger on Friday (CNBC)
- Collapsed crypto exchange FTX owes top 50 creditors over $3 billion, new filing says (CNBC)
- FTX-owned service being used to launder hundreds of millions ‘hacked’ from FTX, researchers say (CNBC)
- China reports first Covid deaths since May lockdown in Shanghai (CNBC)
- Coinbase tumbles as bitcoin slide continues, investors fear contagion from FTX (CNBC)
OPEC+ Eyes Output Increase Ahead of Restrictions on Russian Oil (WSJ)
(All news & data sourced from AFR / The Australian / Bloomberg / Reuters / CNBC / Wall Street Journal / Morningstar / OPTO / Trading Economics)
Disclaimer: CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.
