Market Matters Afternoon Report Thursday 21st July 2016

Afternoon Report 21/07/2016

Market Matters Afternoon Report Thursday 21st July 2016

Good Afternoon everyone

Market Data

What Mattered Today

The ASX continued on its merry way today with another positive day; now the 10th day of gains from the last 11 sessions (but who’s counting). Today saw contributions from most of the major sectors, with the Banks moving higher, together with the large cap resources; excluding BHP. Although we remained in the black by the close, the market lost its way within half an hour of the opening.

On the market today, we had a range of +44/-pts. 5488 low, 5532 high and a close at 5512; up +24pts or +0.43%. Stocks closed in the lower quartile of today’s range with about average volume.

Looking at this monthly chart of ASX 200 shows not only the impressive run we have had, but highlights the how much we have to make up to get back, not to record highs, but to break the highs we saw in March and April last year!

As we mention above, BHP was the under-performer yet again following its release of its production numbers yesterday. At best today, it managed to crawl into the black by 12c but finished the day only 1c up. BHP is now the worst performing stock in the sector, lagging the Australian miners in terms of valuation and share price performance during 2016. As mentioned in yesterday’s report we are a keen follower of this stock, and we’ll keep our powder dry, looking for a potential correction.

WBC put in the best performance in the banks today adding +0.7% to close at $30.63. Some of this may be attributed to a report from Deutsche Bank in Sydney, that suggested investors should look to buy the worst performing banks rather than the ones that are “over-hyped”, after analysing recent banks performance of the last few years.

LLC was strong today, +3.8% to close at $12.99 after a high of $13.07 on the best volume it’s seen for over a month. It was suggested that some institutions are perhaps having to bite the bullet and started to buy this market as the Fear Of Missing Out (FOMO) starts to hit.

Sectors

Source; Bloomberg

ASX 200 Movers

What Matters Overseas

FUTURES pointing to a mixed open….

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 21/07/2016. 5:00PM.

Reports and other documents published on this website and email (‘Reports’) are authored by Market Matters and the reports represent the views of Market Matters. The Market Matters Report is based on technical analysis of companies, commodities and the market in general. Technical analysis focuses on interpreting charts and other data to determine what the market sentiment about a particular financial product is, or will be. Unlike fundamental analysis, it does not involve a detailed review of the company’s financial position.

The Reports contain general, as opposed to personal, advice. That means they are prepared for multiple distributions without consideration of your investment objectives, financial situation and needs (‘Personal Circumstances’). Accordingly, any advice given is not a recommendation that a particular course of action is suitable for you and the advice is therefore not to be acted on as investment advice. You must assess whether or not any advice is appropriate for your Personal Circumstances before making any investment decisions. You can either make this assessment yourself or if you require a personal recommendation, you can seek the assistance of a financial adviser. Market Matters or its author(s) accepts no responsibility for any losses or damages resulting from decisions made from or because of information within this publication. Investing and trading in financial products are always risky, so you should do your own research before buying or selling a financial product.

The Reports are published by Market Matters in good faith based on the facts known to it at the time of their preparation and do not purport to contain all relevant information with respect to the financial products to which they relate. Although the Reports are based on information obtained from sources believed to be reliable, Market Matters does not make any representation or warranty that they are accurate, complete or up to date and Market Matters accepts no obligation to correct or update the information or opinions in the Reports.

If you rely on a Report, you do so at your own risk. Any projections are estimates only and may not be realised in the future. Except to the extent that liability under any law cannot be excluded, Market Matters disclaims liability for all loss or damage arising as a result of any opinion, advice, recommendation, representation or information expressly or impliedly published in or in relation to this report notwithstanding any error or omission including negligence.

To unsubscribe. Click Here