If recommendation upgrades and downgrades from stockbroking analysts are our guide, then the mood surrounding the Australian share market decisively soured last week. Not only did FNArena register only 5 upgrades against 12 downgrades for individual ASX-listed stocks, 8 of the downgrades shifted to Sell. Delivering some offset is the observation 4 of the 5 upgrades moved to Buy.
So who is responsible for all those fresh Sell ratings? Mining companies, mostly, plus High PE high flyers a2 Milk and REA Group. Retailer Premier Investments received one new Buy and Sell rating each.
Positive revisions to earnings estimates are plenty, with mining stocks at the centre, leading to sizeable increases. Fonterra and Premier Investments equally make their presence felt. This time the numbers are of lesser magnitude on the negative side with a2 Milk leading the week’s table which remains dominated by the mining sector, interspersed by Webjet and Qube Holdings.