Author: james Carter

Morning Report Tuesday 20th October 2015

Telstra (TLS) has become the big underperformer; an opportunity?

As anticipated, the ASX 200 sold off, down 0.6% to 5,239, led by the miners today.
BHP followed its performance in the US overnight and closed 2.9% lower at $23.99, while RIO shed 2.3% to $52.14.
The bank sector could not was unable to assist in bringing the broader market back to black. ANZ was the weakest link, down 1.6% to $28.40, while Commonwealth Bank closed 0.9% lower at $75.73.
Despite Newcrest Mining (NCM) maintaining its production guidance, investors turned its back on the stock and lost 5.1% to $14.11.

Best Sector – Telcos
Worst Sector – Energy

A bit heart in mouth this AM after watching the Wallabies try very hard to exit the RWC!!!!

A choppy session was experienced in the ASX 200 today, with the benchmark ending its session down only 1 point at 5,267, but with a range of 40 points.
Westpac (WBC) resumed trading and managed to play catch up from last week’s outperformance from the other big 3 banks. WBC closed 3.7% higher at $31.34.
The Iron Ore sector dragged today, RIO closed 0.6% lower to $53.35, while Fortescue Metals (FMG) closed 4.2% lower at $2.30.
In the Telco Sector, Telstra (TLS) continues to descend, down 2.6% to $5.30 for the day and down 5.5% month to date.

Best Sector – Financials
Worst Sector – Telcos

Rate rises and China become almost a distant memory

The ASX 200 changed its tone today, following the US overnight, ending the day +38 points (+0.7%) at 5,268.
The bank sector led the way, despite Westpac (WBC) remaining on trading halt, pending its capital raising. Commonwealth Bank (CBA) soared 1.5% to $776.55.
The clear winner in the Iron Ore sector continues to be Fortescue Metals (FMG) rallying 4.8% to $2.40 versus its peers e.g. BHP off 0.5% to $25.00.
Have a great weekend and lookout for the Weekend Report

Best Sector – Utilities

Do ‘strangers’ Westpac and US Wal-Mart imply bad news for local retailers?

The ASX 200 finished strongly today, after a weak lead from overseas. The market finished up 33 points (0.6%) to 5,230.
BHP Billiton (BHP) announced it raised $6.5b in the U S, European and London debt hybrid markets, in a measure to refinance its existing debt. It’s expected $1.5b will be used to cover dividends for the next three years, with the balance used to pick up assets in copper and/or oil. BHP finished up 44c 1.8% to $25.12.
RIO Tinto (RIO) enjoyed the strength of the day and closed up $1.22 (2.3%) to $54.25. Fortescue Metals (FMG) rocketed up on its quarterly report when it announced that it had repaid part of its debt and brought the cost of production lower than analyst’s expected. The stock closed up 13c (6%) to $2.29.
Asciano (AIO) was the weakest link, as the ACCC prolonged its decision on being taken over by Brookfield. AIO ended 7.6% lower to $7.88.

Best Sector – Materials
Worst Sector – Telecom

Are there any lessons that can currently be learnt from European markets?

The ASX 200 managed to end the day only 6 points lower to 5197, after trading near its low of 5164 in the morning.
The miners kept the market weaker, with BHP Billiton (BHP) finishing down 13c to $24.68 and RIO Tinto (RIO) managed to close above the $53.00 level to $53.03, down 47 cents.
The worst sector was Energy for the third time running, with Santos (STO) down 6.8% to $5.18 and Origin Energy (ORG) down 7.4% to $5.49.
On a brighter note the Health Care stocks were stronger with Ansell (ANN) having a good day up 3.6% to $19.18. Sonic Health Care (SHL) closed up 55c (3%) to $18.63 whilst HealthScope (HSO) was up 5c (+2%) to $2.59.

Best Sector – Health Care
Worst Sector – Energy