From the penthouse to the outhouse…
What Mattered Today
A few more bright spots on the market today with the Golds doing well, Energy stocks up despite a weaker Oil price – which is a positive sign, ANZ up after reporting - although trading off its highs, while some of the beaten down stocks of the last few days started to see some very tentative buying. We had a range of +/- 40 points, a high of 5241, a low of 5201 and a close of 5225, off -3pts or -0.07%. A better day from the lows of the session and we actually started to look OK by the end.
ASX 200 Intra-Day Chart
ASX 200 daily chart
Going through some of the numbers today looking for stocks to BUY into recent weakness and the most obvious theme over the last few months has been the stocks that everyone loved – the rich ‘penthouse’ sort of stocks have been hammered. It’s the stocks that got most attention on the business channels, the must haves quickly became the have-nots. We’ll nut out this theme in more detail in tomorrow mornings report and present our views on whether or not any are now worth buying however to whet the appetite, here’s a few charts that should help to set the scene…
Tech / IT high growth, high PE stocks have been hit hard as have infrastructure and property
Car Sales (CAR) for instance is down -25% from its highs underperforming the index sharply…
The same is true for REA Group (REA) which is down 28% from the highs
APA group (APA) which is a regulated utility is down 20% from its highs as the crowded bond trade unwound…Is it worth considering here?
Westfield Group (WFD) in the property space is down -22% from the highs massively underperforming the market. We called this a SELL from $11
Clearly, there has been a huge number of ‘landmines’ in the market over the last few months, HOWEVER, the obvious question we should now be asking is, has the yield trade, which was loved for so long and has now unwound gone too far in the short term. Yes, interest rates will go up and higher interest rates impact high PE stocks the most, however is it now time to sniff around these names for value? We’ll start looking at that question tomorrow morning .
Sectors – Good turnaround in the oils today with strong buying in Woodside (WPL) in particular. Origin (ORG) has actually been very resilient into the recent Oil price decline which is a good sign – probably a result of their positive testing of Train 1 and subsequent reduction in the level of recourse they have on the APLNG finance facilities…
Good to also see some BUYING coming into the Healthcare space as it enters a seasonally strong period for that sector + it’s been whacked in October!!
ASX 200 Movers – Golds the standouts but it’s hard to see a lot of upside in the underlying GOLD price from here. REA Group (REA) was hit hard today although BUYING stepped in from the lows – AGM tomorrow should be interesting.
Select Economic Data - Stuff that really Matters in Green
What Matters Overseas
FUTURES mixed….
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 3/11/2016 5.25PM
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