Back to Back Strength with the Trade Balance
The ASX 200 ended its session marginally lower, with big swings seen across the board from negative to positive and vice versa. Earlier in the day, Australia’s Trade Balance was announced for the month of June, exceeding analysts’ expectations yet again at $2.47B (147% above expectation!) meaning there was more goods and services exported than imported = GOOD! On the broader market today, the IT sector led the way while most weakness was felt in the Financials and Telcos - an overall range of +/- 30 points, a high of 5771, a low of 5741 and a close of 5758, down only 4 pts or -0.08%.
ASX 200 Intra-Day Chart
ASX 200 Daily Chart
Market Matters had 2 alerts today, take profit in Fortescue Metals (FMG) and buy Alumina (AWC).
Fortescue (FMG) has seen a sharp rise off the $4.515 low in June. Market Matters bought FMG at $4.655 last month and today’s sale at $5.34 secures a ~14% profit. Weakness and sustained selling throughout the day proved the FMG was looking expensive in the short term. As highlighted in the morning report, iron ore looks a trading game at the moment and we may re-enter the stock at lower levels.
Fortescue Metals (FMG) Daily Chart
Alumina (AWC) was our buy today, allocating 5% of the portfolio at $2.01. Although the stock is at the higher end of its 52 week range, it is only just beginning to see the fruits of its recent restructure and we believe the stock will move higher. AWC also has an allocation in our income portfolio which is expected to pay a fully franked dividend in August.
Alumina Ltd (AWC) Daily Chart
Another highlight in the market today was defensive player, Coca-Cola Amatil (CCL), shedding 3.36% as investors see lower earnings above the horizon. That being Woolworths will not stock their newly promoted ‘No Sugar Coke’ on their shelves, as well as Dominos opting to switch to Pepsi, losing their tender.
Coca-Cola (CCL) Weekly Chart
Have a great night
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.
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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 06/07/2017. 5.00PM.
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