Month: January 2016
- A choppy session experienced today with the ASX 200 ending its day up 29 points (+0.6%) at 5,005 and finishing the month down 5.9%, its worst performance since August 2015 (-5.5%).
- *The Bank of Japan surprised all with a rate cut, down to -0.1%. Yes, -0.1%, for every day investors this means you pay the bank to hold your hard earned cash.
- Macquarie Group (MQG) lost ground today after a downgrade report by an analyst. MQG ended 2.6% lower to $71.58.
- The Big 4 banks helped the broader market in the green, NAB was the outperformer, finishing up 2.1% at $27.66.
- As we mentioned in the Morning Report Oil appears to be the short term ‘key” to swings in stocks – hence this sector performed well today.
- The Iron Ore names continue to outperform, Fortescue Metals (FMG) rallied a whopping 13.8% to $1.73, where we remain bullish at present and BHP continued it’s positive move up 1.6% to %15.35 and even RIO finished up 0.5% to $39.13.
- On disappointing news, a landmine was again triggered, again in the litigation space, with Shine Corporate (SHJ) downgrading its guidance; shedding 73% to $0.535 (previous close was $2.00).
Please watch out for the weekend report.
Equities have experienced a torrid time in 2016 with the ASX200 currently down 6% and the Dow down ~7.5%.
- After a poor start to the day that saw the ASX 200 index down 37 points in the first hour, the market started to rally quite strongly and by lunch time the market was up 75 points from its lows of 4,909 and closed 30 points higher (+0.6%) at 4,976.
- News this morning that Qube Holdings (QUB) had lifted its bid on Asciano Ltd (AIO). QUB is now offering $6.97 cash and one Qube share for every Asciano share, valuing the company at $9.08 a share. AIO closed up 34c (+4%) at $8.84.
- The banks were thought to be a concern before the market opened, when it was reported that Australia New Zealand Bank (ANZ) were looking at possibly cutting their dividend. However, this proved to be no deterrent to the investors, with ANZ being the strongest bank on the bourse. At the close ANZ finished up 37c (1.5%) to $24.04.
- The other banks had a good day too with Commonwealth Bank (CBA) closing up 23c to $77.83, National Australia Bank (NAB) closed up 20c to $27.10 and Westpac Bank (WBC) closed up 15c to $30.48.
- The Iron Ore names had a great day today, with RIO rallying 2.2% higher to $38.93, FMG closed 4.1% higher at $1.52 and BHP has held above the $15 mark finishing up 0.6% at $15.10.
Best Sector – Telecos
Worst Sector – Consumer Discretionary
Good morning everyone Overview Over the last month the ASX200 is down a disappointing 7.9% but the three stocks we discuss below have enjoyed an excellent start to 2016. When looking at these stocks a number of questions arise including:1. Do we take profit and move to cash?
- A disappointing day after celebrating Australia Day yesterday, the ASX 200 slipped below the 5,000 level to finish the day down 60 points (-1,2%) at 4,946 after trading as high as 5,009.
- National Australia Bank (NAB) shareholders voted strongly in favour of the spinoff of Clydesdale Bank. The new bank will list next week in the UK with Australian shareholders, those who have not already sold their entitlement, are able to sell (or buy) via a listing here in Australia. NAB fell with the rest of the banks, down 86c (-3.1%) to $26.90.
- Crude Oil futures fell in Asia trade, currently down 1% at US$31.14/bbl, leading the energy sector lower by afternoon trade. BHP closed 1.8% lower at $15.01, despite rallying in the US overnight, while Santos (STO) ended 2.7% lower at $2.88.
- Newcrest (NCM) rallied 3.2% higher to $13.52 ahead of its December 2015 quarterly production result tomorrow. NCM remains technically negative from a monthly wave count perspective as per the weekend report.
Best Sector – Consumer Discretionary
Worst Sector – Energy
World markets volatility continues over Australia Day
Good afternoon everyone have a good day tomorrow on Australia Day!
*NB There will be no report tomorrow as we celebrate Australia Day
- A better day in the Australian market after a good lead last night, especially with the strong move up in oil. The ASX 200 closed today up 52 points (+1.1%) to 4,916. For the week we managed to scrape up 23 points or 0.5%.
- As mentioned previously the oil price sparked a revival in resources and energy stocks. BHP Billiton (BHP) showed signs of recovery with its price reaching a high of $15.44 and closed up $1.06 (+7.5%) to $15.26. Market Matters were happy to see this rally given our buy alert yesterday predicting this recovery . RIO Tinto (RIO) had a high of $39.95 but closed slightly lower at $39.65 however still up $1.29 or 3.4%.
- The banks were again on the sell side, with perhaps funds selling to pay for the switch into resources. Commonwealth Bank (CBA) closed down 25c to $76.56, Australia New Zealand Bank (ANZ), which had been suffering all week on suspicion the bank could be cutting its dividend, managed to pick up and closed at $23.35, up 24c or 1%. National Australia Bank (NAB) was quiet, up 10c to close at $26.92. Finally Westpac (WBC) closes up just 4c to $29.93.
- On the news front, Medicare (MPL) surprised the market with an upgrade to its full year profit forecast. Medibank Private says its full year operating profit is expected to exceed $470 million, $100 million above its previous guidance. The price jumped on the opening to a high of $2.71 however it slipped back to close up 26c (+11%) to $2.50.
Best Sector – Energy
Worst Sector – Prop Trusts
Today we have restructured how we present the morning report so will look forward to your feedback.
Really bullish, there's more to go in the reflation rally
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