BIG stock specific volatility today as Reporting Season gains momentum
We’ve been calling the mkt lower with a target of 5500 and today we closed at 5785 – with the index grinding higher throughout the session. It simply feels like sellers can’t get on top of this mkt, even stocks that suffer from initial weakness get bought and this probably stems from the markets reasonably high cash levels across the board. For now, we continue to trade in the range between 5836 on the upside and 5629 on the downside, however clearly the buyers are starting to get on top. The Banks were strong today despite CBA trading Ex-Dividend for $2.30 FF – actually closing down just $1.41 holding its dividend and more. Suncorp also went Ex-Divi for 40cps which if we add in franking is worth 57c – the shares down by 51c or 3.76% to close at $13.05, so again – a reasonable effort.
Commonwealth Bank (CBA) Daily Chart
On the broader market today, the Energy stocks did best – Woodside a standout adding +2.61% on the back of good results mostly courtesy of strong cost controls, while most weakness was felt in the IT space - an overall range of +/- 57 points, a high of 5785, a low of 5728 and a close of 5757, up 27pts or +0.48%.
ASX 200 Intra-Day Chart
ASX 200 Daily Chart
A short note this afternoon as I‘m rushing out for a meeting. We did a quick Direct From The Desk today covering our view on Challenger Group Financial (CGF) and Rio Tinto (RIO)
Have a great night
The Market Matters Team
Disclosure
Market Matters may hold stocks mentioned in this report. Subscribers can view a full list of holdings on the website by clicking here. Positions are updated each Friday.
Disclaimer
All figures contained from sources believed to be accurate. Market Matters does not make any representation of warranty as to the accuracy of the figures and disclaims any liability resulting from any inaccuracy. Prices as at 16/08/2017. 5.00PM.
Reports and other documents published on this website and email (‘Reports’) are authored by Market Matters and the reports represent the views of Market Matters. The MarketMatters Report is based on technical analysis of companies, commodities and the market in general. Technical analysis focuses on interpreting charts and other data to determine what the market sentiment about a particular financial product is, or will be. Unlike fundamental analysis, it does not involve a detailed review of the company’s financial position.
The Reports contain general, as opposed to personal, advice. That means they are prepared for multiple distributions without consideration of your investment objectives, financial situation and needs (‘Personal Circumstances’). Accordingly, any advice given is not a recommendation that a particular course of action is suitable for you and the advice is therefore not to be acted on as investment advice. You must assess whether or not any advice is appropriate for your Personal Circumstances before making any investment decisions. You can either make this assessment yourself, or if you require a personal recommendation, you can seek the assistance of a financial advisor. Market Matters or its author(s) accepts no responsibility for any losses or damages resulting from decisions made from or because of information within this publication. Investing and trading in financial products are always risky, so you should do your own research before buying or selling a financial product.
The Reports are published by Market Matters in good faith based on the facts known to it at the time of their preparation and do not purport to contain all relevant information with respect to the financial products to which they relate. Although the Reports are based on information obtained from sources believed to be reliable, Market Matters does not make any representation or warranty that they are accurate, complete or up to date and Market Matters accepts no obligation to correct or update the information or opinions in the Reports.
If you rely on a Report, you do so at your own risk. Any projections are estimates only and may not be realised in the future. Except to the extent that liability under any law cannot be excluded, Market Matters disclaims liability for all loss or damage arising as a result of any opinion, advice, recommendation, representation or information expressly or impliedly published in or in relation to this report notwithstanding any error or omission including negligence.
To unsubscribe. Click Here
