ASX limps into the weekend…
Another higher open this morning however the market failed to go on with it today which is understandable given the strong week we’ve see in stocks. Since last Friday, the index has put on +85pts or +1.49% to close a tad over 5800 with more than 60 companies reporting results We had a tight range today of +/- 20 points, a high of 5819, a low of 5799 and a close of 5805, off -10pts or -0.18%. Momentum is clearly waning above 5800 and a pullback to 5750 region would not surprise.
ASX 200 Intra-Day Chart
ASX 200 Daily Chart
On the reporting front, ANZ delivered a good trading update today which has prompted decent upgrades to 2017 estimates, although no change for the outer years. Bad debts again were low which supported a very good earnings result for the quarter. We own ANZ
ANZ Daily Chart
Medibank (MPL); The MPL result was decent on the top line but as was the case with WES & Telstra, the underlying trends. A lot of these large brands that have been very dominant in a particularly sector are losing market share and MPL is certainly one of those. Policy holder growth has been negative for the three consecutive halves and without top line revenue growth, growing earnings in the core health insurance business will be very difficult. All too Hard for us at this stage. We do not own MPL
Medibank (MPL) Daily Chart
ANZ the standout today with another very low bad charge supporting Q1 earnings – the stock rallied +1.9%
Have a great weekend & look out for the report on Sunday,
The Market Matters Team
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