Market opens higher – fades into the close
What Mattered Today
Another mixed bag today with the market peaking early on (10.20am) before drifting lower throughout the day. Some buying coming into those stocks that have been under pressure of late with Domino’s up nearly 5%, Vocus put on ~5% and Western Areas traded up more than 10%. Downer Edi reported a good set of half yearly numbers, topping expectations by around +8.5% for earnings while the dividend was in line with consensus at 12cps. The stock was trading up ~12% but it was up more earlier on – a high of $7.46 versus a $7.07 close. Looks like buyers got a little optimistic this morning.
Downer (DOW) Daily Chart
On the flipside, OceanaGold was hit hard following news that the Philippine Govt had suspended one of their projects – and a number from other companies as well. This has wider ramifications given the other mines are largely Nickel, hence the reason for WSA’s share price rally + Independence Group also put on ~3%. OGC say it’s unjustified and unlawful but just another example of political risk in overseas countries. The US firming in these stakes!
Other gold stocks did well today, with Newcrest up +2.17% and Evolution put on +1.84%.
Newcrest Mining (NCM) Daily Chart
In this type of market and given our view that the market will have one more meaningful rally higher, we think it makes sense to be accumulating stocks on the back foot. We’ve certainly done that with Henderson Group (HGG) of late, while there are a number of other stocks currently on the radar. Its near impossible to pick lows in stocks, and when it does happen, its more luck than good management – but managing cash levels, sector allocations then finally specific stocks will deliver results over time. Our cash levels remain high ~27% and we are continuing to look for opportunities to buy weakness.
We had a range today of +/- 40 points, a high of 5670, a low of 5630 and a close of 5645, up off -7pts or -0.14%.
ASX 200 Intra-Day Chart
ASX 200 Daily Chart
Sectors
ASX 200 Movers
What Matters Overseas
DOW beat by around +8.5% while Tabcorp was hit by costs associated with the Tatts deal
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