What felt like a snoozefest
What Mattered Today
As expected, a bit of a yawn of a session and when volume is low, the market tends to drift in the direction of the recent trend. Some of the unloved stocks / sectors are starting to find some tentative buying, with the likes of Vocus (VOC) up 3.09% to $5.67, while TPG Telecom (TPM) finished 3.04% higher to $7.45 – Telstra (TLS) has bounced from recent lows of $4.70 up to $5.03 – another reasonable move .
Nick Scali (NCK) again showed why it is one of Australia’s very best quality retailers, upgrading earnings from the AGM and we now have expectations for earnings growth of 30%-35%. A stock that we like, it continues to deliver on earnings, it’s just slightly illiquid for our portfolio…Although this is improving post sell down from the Scali family. The stock closed up 0.65% today.
Here’s a good chart from Shaw and Partners showing the trends in the business…
Source; Shaw and Partners
Nick Scali (NCK) Daily Chart
The US is back open tonight, but with an early close + the majority take a four day break for Thanksgiving, so light volumes and very little conviction is expected. It’s been a good week on the ASX with the market up 148 points, or +2.77% overall. On the market today we had a range today of +/- 42 points, a high of 5,521, a low of 5,479 and a close of 5,508, up 23pts or 0.41%.
ASX 200 Intra-Day Chart
ASX 200 Daily chart
We reduced our holding in Origin Energy (ORG) today, from a 10% portfolio weighting down to 5%... Although we remain positive on Oil, the OPEC meeting takes place on the 30th November and it seems the market is positioned for some type of deal around production caps / cuts. That remains the likely outcome however a negative Oil price reaction would play out in the short term if no agreement is reached. For that reason, we trimmed our overweight position in Origin ahead of the meeting. We are targeting a run up to ~$7 for our remaining 5%. We originally purchased ORG at $5.50.
Origin Energy (ORG) Daily Chart
Sectors
ASX 200 Movers
Select Economic Data - Stuff that really Matters in Green
What Matters Overseas
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