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Month: October 2015

Morning Report Friday 23rd October 2015

by james Carter

The ECB’s hint of stimulus send equities roaring! Good morning everyone, Overview Last night ECB (European Central Bank) President Mario Draghi literally ignited world equity markets as he said “policy makers will investigate fresh stimulus measures to thwart downside risks to the growth and inflation outlooks”. Perhaps our comments in yesterday’s report will be proven portentous? Adding to the positive sentiment were US earnings. As previously discussed, earnings expectations have been extremely low and beating them is proving relatively easy. Of the companies that have reported to date 44% have exceeded sales estimates and, importantly, 74% have beaten profit projections improving confidence in the strength of corporate America. In a broad-based rally 9 of the 10 major groups comprising the S&P500 gained, with the Healthcare-care stocks being the only weak sector falling 1%. This relative weakness in the Health Care Sector, a sector that has been very strong over recent years, was predicted in recent Market Matters’ reports. We see the maturity of the Healthcare sector influencing investors to put their uninvested cash into what have been the underperforming sectors in the search of better returns. Thus in relative terms we don’t expect a lot of new cash into this sector thereby tempering its relative growth. Turning to the Markets The Elliott Wave count remains firmly on track for the US / German equities to target fresh all-time highs in coming months as we enter what is seasonally the strongest period for equities. – see charts 1-3.
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Afternoon Report Friday 23rd October 2015

by james Carter

  • The ASX 200 caught up with the global rally from last night, rallying 88 points to 1.7% as M&A and the banks shared through to the close.
  • ANZ followed the herd and raised its standard variable rate by 0.18% today. This is good news for bank shareholders. ANZ closed 1.1% higher to $28.90, while NAB was the strongest of the pack, up 1.9% to $32.44.
  • DrillSearch (DLS) rallied 26% to $0.825 after being approached by Beach Petroleum (BPT) for a potential merger. The energy sector continues to consolidate, where will WPL be?
  • Please watch out for the weekend report tomorrow. Have a great break!

Best Sector – Consumer Staples
Worst Sector – Health Care

Morning Report Thursday 22nd October 2015

by james Carter

Are the next few years about yield or growth?Morning allOverviewThe average annual capital return from the Australian share market is 7.35%, a solid number especially with term deposits only paying around 2.5%. However this doesn’t include the return from dividends. When dividends are included these returns become even more attractive with the average return from the All Ords Accumulation Index at 12.8% on a rolling annual basis over the last 35 years.This return equates to doubling your money in 6 years and tripling it in 9 years; our much loved property market would love to boast these statistics. However, the ASX200 in price terms is basically unchanged over the last decade, courtesy of the GFC, with the only gains, on an index basis, coming from dividends. So it is when you buy / invest in equities and of course sell them that dictates the return.Obviously over this decade there have been both some major winning / losing stocks and sectors within the overall unchanged Index.
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Afternoon Report Thursday 22nd October 2015

by james Carter

  • A choppy session again was seen today in the ASX 200, rallying 46 points from its low, to close 15 points higher at 5,263.
  • Not surprisingly, the energy sector roared after Santos (STO) rejected a bid a $7.1b takeover bid this morning. STO closed 16.2% higher at $6.32.
  • Thanks banks also supported the broader market to close higher this afternoon. Commonwealth Bank (CBA) rallied 0.8% to $76.39, while Westpac (WBC) closed 0.9% higher to $31.03.

Best Sector – Energy
Worst Sector – Consumer Discretionary

Morning Report Wednesday 21 October 2015

by james Carter

Remaining open minded is critical for future investing

Afternoon Report Wednesday 21 October 2015

by james Carter

  • A quiet session was experienced in the morning, trading as low as 5195 by lunchtime, only to rally with greater volume and close 10 points higher to 5246 (xx from its lows).
  • Super Retail Group (SUL) rallied 4.3% to $9.39 after investors were pleased with the results of its AGM.
  • The Iron ore sector will be interesting tomorrow; BHP closed 1% higher to $24.23, despite Iron Ore currently down 1.5% in Asia.

Best Sector – Materials
Worst Sector – HealthCare

Morning Report Tuesday 20th October 2015

by james Carter

Telstra (TLS) has become the big underperformer; an opportunity?

Afternoon Report Tuesday 20th October 2015

by james Carter

  • As anticipated, the ASX 200 sold off, down 0.6% to 5,239, led by the miners today.
  • BHP followed its performance in the US overnight and closed 2.9% lower at $23.99, while RIO shed 2.3% to $52.14.
  • The bank sector could not was unable to assist in bringing the broader market back to black. ANZ was the weakest link, down 1.6% to $28.40, while Commonwealth Bank closed 0.9% lower at $75.73.
  • Despite Newcrest Mining (NCM) maintaining its production guidance, investors turned its back on the stock and lost 5.1% to $14.11.

Best Sector – Telcos
Worst Sector – Energy

Morning Report Monday 19th October 2015

by james Carter

A bit heart in mouth this AM after watching the Wallabies try very hard to exit the RWC!!!!

Afternoon Report Monday 19 October 2015

by james Carter

  • A choppy session was experienced in the ASX 200 today, with the benchmark ending its session down only 1 point at 5,267, but with a range of 40 points.
  • Westpac (WBC) resumed trading and managed to play catch up from last week’s outperformance from the other big 3 banks. WBC closed 3.7% higher at $31.34.
  • The Iron Ore sector dragged today, RIO closed 0.6% lower to $53.35, while Fortescue Metals (FMG) closed 4.2% lower at $2.30.
  • In the Telco Sector, Telstra (TLS) continues to descend, down 2.6% to $5.30 for the day and down 5.5% month to date.

Best Sector – Financials
Worst Sector – Telcos

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