Market Matters Afternoon Report Monday 29th August 2016
Good Afternoon everyone
Market Data
What Mattered Today
The ASX200 was sold aggressively today from the opening bell, trading down ~60-points by 11.30am, before closing down 46-points (0.84%), after a small bounce in the last 30 minutes of the day. The selling appeared to be futures led as opposed to sector-specific with weakness across the board. We underperformed on a global level today and perhaps the placement of large lines of stock in both Crown (almost $450m) and Evolution Mining (over $300m) was enough to absorb any buying of our market short-term.
ASX 200 Intra-Day Chart
After today's surprisingly degree of weakness, we are watching the "ABC" retracement target very carefully in the ASX200, in the 5428 area. As we have said previously failure to hold the 5400 support will be concerning to our short-term bullish outlook for Australian stocks.
ASX200 Daily Chart
Over the weekend, James Packer (through his company Consolidated Press Holding), sold 35 million shares of Crown Resort (CWN) at $12.80. This was reportedly a finance strategy to pay debt. The stock surprisingly performed well, only closing down 1.48% at $13.32, well above the placement price.
Crown Resorts (CWN) Daily Chart
Australia's second largest gold producer Evolution Mining (EVN), raised $311m through a rights issue to institutional shareholders at $2.05. The stock, not surprisingly, fell 8.8%, to close at $2.17, plus other gold stocks were dragged lower by the placement, with Newcrest down 81c (3.47%). Notably, our favourite in the sector, Regis Resources (RRL) closed down only 4c at $3.81. We remain keen buyers of Newcrest (NCM) around $21 and RRL ~$3.50.
Regis Resources (RRL) Weekly Chart
Estia Health (EHE) received the wrath of the market today, falling almost 17% to $4.10. At one stage, the stock hit $4, an all-time low. Missing guidance is simply not tolerated in this market at present. We see no reason to consider the stock at this stage.
Estia Health (EHE) Weekly Chart
A small glimmer of light in the banking sector today, was with Bendigo Bank (BEN) - Our standout chart of the week in the Weekend Report, which managed to close up 9c, when overall sellers were clearly winning the day.
On the market today, we had a range of +/- 64 points, a high of 5516, a low of 5452 and a close of 5469, down -46 points or -0.84%.
Sectors
Source; Bloomberg
ASX 200 Movers
Select Economic Data – This week Stuff that really Matters in Green
What Matters Overseas
FUTURES mixed…
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 29/08/2016. 5:00PM.
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