Aussie market rallies for 3rd straight day (WPL, JHX, TLS)
WHAT MATTERED TODAY
A good day for Aussie stocks with strong buying coming from the 10.30am low - the market closing on its highs. Energy the standout courtesy of a stronger Oil price with recent weakness in the sector now a distant memory. The S&P/ASX 200 index advanced 29 points, or 0.5 per cent, to 6119, the broader All Ordinaries index also rose 29 points, to 0.5 per cent, to 6228, while the Australian dollar reached US79.99c in late trading.
The excellent rebound over the last 3-days has seen the market up from the 5993 low on Wednesday to close today at 6121, a rally of 128pts/ 2.1%. February is traditionally a strong month for equities with the 5 year average printing a gain of 2.80% the traditional run up into the April peak, before the old sell in May adage becomes worth following…
NAB was out today with a revision to their house price forecasts with a faster-than-expected deterioration in Sydney causing them to cut their outlook for prices this year. Here’s a quick snapshot…
ASX 200 Intra-Day Chart
ASX 200 Daily Chart
CATCHING OUR EYE
1.Telstra (TLS) $3.67 / +0.82%; hoisted the white flag today writing down the last of a $500 million investment in the video streaming business Ooyala, which was meant to be the credible rival to You Tube – the mkt knew this was coming, the write down was non-cash however it does highlight to sort of heightened risk in TLS’s ‘new business’ as it positions itself as a global tech player, Anyway, the stock bucked the news today and finished higher. We like TLS here and think it trades higher into Feb/Mar dividend.
Telstra Daily Chart
2. Woodside (WPL) $34.24 / 2.06%; Oil rebounded from this week’s weakness, up 2% overnight and another 0.4% in Asian trade, dragging the energy names with it. We are looking for oil to edge higher this year as pessimism seen last year wears off, heading toward US$70 a barrel. We own WPL in both portfolios.
Woodside Daily Chart
3.James Hardie (JHX) $23.65 / 6.77%; The building supplies company rallied strongly after announcing Q3 results pre-market, with a healthy quarterly profit of ~$70mil. The result was primarily driven by margin growth, with prices rising faster than volume which was received well by the market, mostly because the company is still producing below expectations and capacity whilst also reducing costs and inefficiencies within the business. Another $US earner that is starting to fly.
James Hardie Daily Chart
OUR CALLS
No changes today in the portfolio’s
Have a great night
James & the Market Matters Team
Disclosure
Market Matters may hold stocks mentioned in this report. Subscribers can view a full list of holdings on the website by clicking here. Positions are updated each Friday, or after the session when positions are traded.
Disclaimer
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 02/02/2017. 5.09PM
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