Market Matters Afternoon Report Thursday 31st March 2016

Afternoon Report 31/03/2016

Market Matters Afternoon Report Thursday 31st March 2016

Good afternoon everyone

Market Data

ASX 200	5,082.80	Best Sector
ASX % Change	1.45	Telcos	2.01%
ASX Point Change	72.53	Consumer Discretionary	2.00%
ASX High	5,098.20	Financial	1.75%
ASX Low	5,010.30	Worst Sector
Value	$4.35B	Materials	0.93%
		Consumer Staples	0.93%
June SPI Futures	5,066.00	Utilities	0.75%
AUD/USD	0.7652
June S&P E-mini Futures	2,053.00	RBA Cash Rate	2.00%

What Mattered Today

1. A pretty good session on the Aussie market today – the best in the last 20 odd days – with the index up +72pts to close out the month and the quarter at 5082…

2. It’s been a pretty rough start to 2016 with concerns over global growth, concerns over credit markets (pushing credit spreads higher) with the final nail being….concerns over bad debt in the Aussie banking sector
3. Still, we saw the bruised and battered old banks rally today – the best of them was NAB +2.34%– followed by CBA +2.20%. ANZ +1.51% still the weakest link (just) as concern remains over the sustainability of their dividend
4. It’s always interesting to see/hear the negativity of the press when stocks are low (and conversely the positivity when they’re high) – and the numerous articles that highlight the overweight bank exposure of Aussie equity portfolios
5. That might be a valid observation but surely, reducing into strength rather than weakness – and penning such articles into optimism rather than pessimism makes more sense!!!
6. As we made mention of in yesterday’s report, dividends are being paid into investor accounts today – Commonwealth Bank (CBA), BHP (BHP), Origin Energy (ORG), Bendigo Bank (BEN) & Tatts Group (TTS) for a combined amount of $4.89bn
7. Interesting to see Telstra (TLS) seem to benefit from that today – up +2.11% to $5.33 and closing smack on the daily high. TLS pays its divi tomorrow totalling $1.90b…TLS currently resided in the Market Matters portfolio – purchased just ahead of the 15.5c full franked dividend at $5.18c
8. Value on the Aussie mkt continued to be weak – just $5.1bn as the market look towards China manufacturing data tomorrow + non-farm payrolls in the US tomorrow night…
9. We put the below table in this morning’s note – which is available to subscribers – showing the swings in Q1 of 2016 calendar year…up to this morning…. the biggest takeout in the below numbers is clearly the massive trading ranges for the period (Q1). The average trading range for the markets outlined above is 16% for the Jan quarter.

10. A very busy day on the desk today to end the month – which translates to a shorter than normal afternoon missive…..a more in depth look at the months trade and expectations for Q2 tomorrow

Aussie Sectors….Go Telstra!!!

ASX 200 Movers

Winners
Genworth Mortgage Insurance Au (GMA)	+$0.19, or (+8.3%) to $2.49
Mesoblast Ltd (MSB)	+$0.16, or (+6.6%) to $2.57
IPH Ltd (IPH)	+$0.4, or (+6.5%) to $6.53
Spotless Group Holdings Ltd (SPO)	+$0.065, or (+5.4%) to $1.26
Tatts Group Ltd (TTS)	+$0.17, or (+4.7%) to $3.78
Programmed Maintenance Service (PRG)	+$0.06, or (+4.2%) to $1.48
Tassal Group Ltd (TGR)	+$0.15, or (+4.1%) to $3.82
Tabcorp Holdings Ltd (TAH)	+$0.16, or (+3.9%) to $4.28
Syrah Resources Ltd (SYR)	+$0.15, or (+3.8%) to $4.06

Losers
Primary Health Care Ltd (PRY)	-$0.04, or (-1.1%) to $3.75
Orica Ltd (ORI)	-$0.24, or (-1.5%) to $15.37
Northern Star Resources Ltd (NST)	-$0.06, or (-1.7%) to $3.43
Liquefied Natural Gas Ltd (LNG)	-$0.01, or (-1.9%) to $0.53
Evolution Mining Ltd (EVN)	-$0.03, or (-1.9%) to $1.52
Regis Resources Ltd (RRL)	-$0.05, or (-2.0%) to $2.44
Select Harvests Ltd (SHV)	-$0.4, or (-8.7%) to $4.13
OZ Minerals Ltd (OZL)	-$0.11, or (-2.1%) to $5.03
St Barbara Ltd (SBM)	-$0.07, or (-3.4%) to $2.00
WorleyParsons Ltd (WOR)	-$0.22, or (-3.9%) to $5.38

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 31/03/2016. 4.13PM.
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