Morning Report Monday 22 September 2014
Where do we put our hand up to buy the big supermarkets?
Firstly, I am sorry the AXS200 charts uploaded incorrectly on the weekend report. Chart 1 illustrates the recent slide we have witnessed locally with the ASX200 down over 300 points from its August highs; over 40% of the fall has been contributed by the banks.
Over the last month, the ASX200 is down 3.8%, significantly aided by the large retailers that are down 4.9% - note, both Woolworths and Wesfarmers went ex-dividend recently. The sector is clearly suffering along with the banks, being dragged down by a weak $A as the offshore investors exit Australia. I have been bearish the sector over recent months and this has proved correct; the next question is if / when I would start buying.
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