Afternoon Report Thursday 28 May 2015
• A disappointing day, not managing to follow through on the strength in the US overnight, as the Futures market sold aggressively in the first few hours. The ASX 200 closed 12 points lower (-0.2%) at 5713.• Apart from ANZ outperforming the market, the remaining big 3 banks led Australia’s benchmark lower, with Commonwealth Bank (CBA) being the weakest link, down 63c (-0.8%) lower at $83.50 which dovetails with our view to start accumulating this stock soon.• Poor economic data continues to be released, showing our underperformance against other global economies, particularly the US. The 1Q15 Capital Expenditure was reported far weaker than expected, further confirming Australia’s poor economic health at present.• The gold sector didn’t follow through from overnight’s strength in the physical commodity. Newcrest (NCM) lost 5.4% at $13.90. We currently see better risk/reward elsewhere.
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