Afternoon Report Thursday 9 April 2015
• The ASX 200 continues to have a choppy session this week, today it traded as high as 5965 this morning, only to retreat and end 30 points lower at 5932.• The high yielding stocks underperformed the broader market, particularly with the ‘big 4’ banks. ANZ down 0.5% at $36.62 and Telstra (TLS) down 0.8% at $6.27.• The growth stocks are slowly gaining traction (see recent Hickman Report), Vocus (VOC) closed 3.1% higher at $6.09 and M2 Group (MTU) up 1.3% at $6.09.• With concerns of a price crisis in Iron Ore, and China reducing its tax to its domestic iron ore miners, BHP lost 1.8% to $30.19, Fortescue Metals (FMG) down 2.6% at $1.89 and RIO down 0.7% to $56.58. We reiterate, this sector is seen as a trading vehicle rather than an investment.• In the Energy Sector, Woodside (WPL) lost 2.7% to $34.13 as investors now see company as a situation stock rather than a yielding stock, as the overhang on if, or when will Royal Dutch Shell sell its ~13.6% stake after offering ~$94b for BG Group yesterday.
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