Afternoon Report Monday 24 August 2015
- An extremely tough day for everyone in the market today.
- The market has now fallen lower than our predicted level of 5100, due to concerns around emerging markets.
- We think the market is good value for the longer term now, and stocks like ANZ which we got more of today are good value.
- The ASX200 felt as if it was in a bottomless pit, ending on its lows, down 213 points (-4.1%) at 5,001 and wiping ~$50bn from the market.
- Not a sight of green was seen across the market map, the utilities sector, although in the red, outperformed most, in particular the Energy sector, where Santos (STO) was down 11.3% at $4.97 by close.
- At the start of the day we were considering buying STO but the momentum behind the selling kept us well and truly on the sidelines.
- As discussed in this morning's report our target for the US S&P500 is now about 5% below today's price (chart 1) hence no rush to chase stock today.
- We believe the banks are representing great value at these levels with ANZ paying an anticipated yield of 6.7% / 9.6% grossed up.
- Westpac (WBC) was the weakest link out of the ‘big 4’ banks, ending its day down 6.1% to $29.45.
- Bluescope Steel (BSL) blind-sided investors today, with positive earnings and rallied 8.6% to $3.67.
1 S&P500 Active contract Monthly Chart
2 Commonwealth Bank (CBA) Monthly Chart
Best Sector – Utilities
Worst Sector – Energy
Winners
BlueScope Steel Ltd (BSL) +$0.29, or (+8.6%) to $3.67
Sigma Pharmaceuticals Ltd (SIP) +$0.035, or (+4.7%) to $0.785
Cochlear Ltd (COH) +$0.18, or (+0.2%) to $84.89
FlexiGroup Ltd/Australia (FXL) +$0., or (+0.0%) to $2.72
Losers
Whitehaven Coal Ltd (WHC) -$0.11, or (-9.3%) to $1.075
Arrium Ltd (ARI) -$0.01, or (-9.5%) to $0.095
Santos Ltd (STO) -$0.63, or (-11.3%) to $4.97
Fortescue Metals Group Ltd (FMG) -$0.28, or (-14.6%) to $1.635
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 23/08/2015. 4.23PM.
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