Market Matters Afternoon Report Friday 9th September 2016
Market Data
What Mattered Today
Another fairly soggy day today with the Aussie market continuing to underperform other regional bourses. The sell Australia theme is alive and well it would seem following JP Morgan’s downgrade of Australia yesterday. They came out to say that given Australia’s earnings forecasts continue to fall versus other markets where earnings are not on that trajectory, then it makes little sense to be in Australia. That has clearly caused some discontent amongst institutional money, and we’ve seen our market under a lot of pressure this week, particularly in the context of where other major markets have traded.
On the session today, we had a range of +/- 52 points, a high of 5384 a low of 5332 and a close of 5339 down -46 points or -0.87%
For the week the ASX is down -76pts in aggregate or -1.41% from 5415 to close at 5339. In contrast, the US market is up +0.48% which is a similar thematic to last week, where the Aussie market fell -2.6% while other markets were higher.
A weak open then a flat line for much of the session….
ASX 200 Intra-Day Chart
ASX 200 Daily Chart
We’re overweight the banking sector and this week we felt some pain. Our rationale continues to be around relative value, and importantly the positive technical picture playing out in US banks. We will look to sell into strength, but that’s not prevailing as yet. Interestingly, Banks are usually very well supported following index options expiry in September. Over the last 5 years, the average return from the third week in September to the end of December is 5.9%. Worth keeping in the back of ones mind!
Elsewhere, Origin Energy (ORG) rallied strongly today on news that long-term CEO Grant King is leaving, being replaced by Frank Calabria – which should be taken well by the market. ORG has had a tough period in the last few years and a lot in the market think that Grant King should have left some time ago. Stock rallying +5% today is pretty clear indication. We’re still targeting $6.20
Origin Energy (ORG) Daily Chart
Sectors
ASX 200 Movers
Select Economic Data – Stuff that really Matters in Green
What Matters Overseas
FUTURES are pointing to a flat open…
***Keep an eye out for the Weekend Report on Sunday***
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 9/09/2016. 5:00PM.
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