- The ASX 200 finished down 20 points at 5,099, and it feels like we had a good day! At its worst the index was down 85 points, but from ~2.30pm the buyers started in and the market looked a whole lot better. The market bounced off our ABC target recently referenced in the reports of 5050.
- The resource sector held the very well with BHP Billiton (BHP) finished up 15c to $21.57, whilst RIO Tinto (RIO) was positive for 90% of the day, finishing up 39c to $49.39.
- The worst sector today seen was in the IT sector, with Computershare (CPU) shedding 23c (-2.1%) to $10.58 and IRESS (IRE) down 26c (-2.8%) to $9.16.
- As mentioned this morning, AIO was in the middle of a ‘bidding war’ between QUB and Brookfield. AIO rallied 3% to $8.99.
- Qantas (QAN) continues to lose its lustre, down 1.4% to $3.66, despite Crude Oil plummeting lately. The weakness is thought to be due to the prospect of US interest rates rising in the near term, where their funding is offshore.
- The chart below (source www.smh.com.au) shows dividends of some of the ASX’s biggest names. BHP promises a net yield of 8.3 per cent, while other names like ANZ, NAB and Suncorp are trading on yields of around 7%. Once franking is added it’s closer to 10%. The question moving forward is how sustainable are these? Market Matters has bought BHP for a bounce, own ANZ for yield and a small amount of growth, like SUN technically and fundamentally, but are the least confident in NAB moving forward. It will be interesting to watch the performance of these stocks over the next 12 months.
Best Sector – Energy
Worst Sector – Information Technology
Winners
Bellamy's Australia Ltd (BAL) +$0.78, or (+8.8%) to $9.58
Cabcharge Australia Ltd (CAB) +$0.14, or (+5.3%) to $2.76
Regis Resources Ltd (RRL) +$0.095, or (+5.2%) to $1.945
Fortescue Metals Group Ltd (FMG) +$0.10, or (+4.5%) to $2.3
Losers
Technology One Ltd (TNE) -$0.16, or (-4.2%) to $3.66
Recall Holdings Ltd (REC) -$0.34, or (-4.6%) to $7.00
CIMIC Group Ltd (CIM) -$1.28, or (-4.7%) to $25.99
Pacific Brands Ltd (PBG) -$0.04, or (-5.3%) to $0.715
All figures contained from sources believed to be accurate. MarketMatters 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 10/11/2015. 4.14PM.
Reports and other documents published on this website (‘Reports’) are authored by Market Matters. The MarketMatters Reports are 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.
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The author holds an interest in the financial products of ANN, ANZ, BEN, CBA,BHP, OSH, SUN & SEK,.
