If there is one conclusion that can be drawn from the week past, it is that stockbroking analysts overwhelmingly see opportunities emerging in a shocked and beaten down Australian share market. October has been brutal on multiple accounts, but at least analysts are responding by issuing far more recommendation upgrades than downgrades for individual ASX-listed stocks.
For the week ending Friday, November 2, 2018, FNArena registered no less than 22 upgrades and only six downgrades, with multiple stocks receiving multiple upgrades. Medium-cap mining conglomerate Independence Group received three upgrades during the week, of which two went to Neutral/Hold.
Equally worth pointing out is that upgrades are coming thick and fast for ongoing ‘growth’ stories in the share market, countering the narrative that has been dominating the Australian share market for weeks that the future is now all about ‘value’ stocks outperforming in the face of rising global bond yields.