Market Matters Afternoon Report Tuesday 24th May 2016

Afternoon Report 24/05/2016

Market Matters Afternoon Report Tuesday 24th May 2016

Good Afternoon everyone

What Mattered Today

The Australian share market had an extremely lacklustre day, trading in a very tight 29 point range. The market tried to rally after Glenn Stevens, the RBA Governor, spoke at a lunch function and noted that the RBA would continue to defend its 2-3% inflation target. This news gave equities an initial uplift and sent the $A down a third of a cent, as the likelihood for future rate cuts in Australia increased. However, with no apparent real appetite from buyers, we failed to follow through and closed down 23 points, making fresh lows in the last 20 minutes of trade.

ASX200 Intraday Chart

Not surprisingly, no individual sectors were particularly exciting today with the insurance stocks putting in the best effort closing up 0.6%.

On the stock front Flight Centre (FLT) again caught the market's attention, closing down another 5% after yesterday’s 9% hammering - we discussed this morning that we are currently not attracted to this falling knife. FLT is struggling against the online disruption from Webjet (WEB) and lower revenue from the increasing popular cut price airlines - these trends feel to have much further to run.

Flight Centre (FLT) Monthly Chart

Bendigo Bank (BEN) also caught our attention today, closing up 1.1% to $9.98, while the sector was down 0.6%. BEN has been a poor performer within the Banking Sector over the last year, but technically it looks capable of a solid ~15% rally from current levels. Money looking for a home with underperforming stocks has been prevalent over recent months as fund managers sit on large cash holdings. With a fully franked dividend looming in August, the stock may appeal to any retail investors underweight the banking sector.

Bendigo Bank (BEN) Monthly Chart

Stocks & Sectors Today

Source; Bloomberg

ASX 200 Movers

What Matter Tonight

European leads are pointing slightly lower with the FUTURES on the FTSE down 25, DAX -50 & CAC -15
DOW FUTURES are down 35 points, while the S&P 500 FUTURES are -5.

Regards,

The Market Matters Team
Level 12 28-34 O'Connell St
Sydney, NSW 2000.

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 24/05/2016. 4:40PM.

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