Market Matters Afternoon Report Friday 27th May 2016

Afternoon Report 27/05/2016

Market Matters Afternoon Report Friday 27th May 2016

Market Data

What Mattered Today

The ASX200 leapt out of the blocks today when most traders were expecting a quiet day following no overseas lead. We were trading up almost 40 points by 11am, touching 5427 the markets highest level since August of last year. Ultimately the market managed a relatively disappointing 17-point gain, closing at 5405 .Generally it just felt like the market was running out of sellers as we punched through the psychological 5400 area, reaching the new highs for 2016, on relatively low volume. Internally local equities are following the pattern we have been recently forecasting with banks up and iron ore stocks struggling, led by RIO today.
The US is entering a long weekend for Memorial Day, we would not be surprised to see US equities at all time highs in early June.
Please watch out for the weekend report on Sunday.

ASX200 Intraday Chart

Stocks who have endured a tough week seemed to be the flavour of the day with Wesfarmers +1.9%, Spotless +3.8% and Suncorp +1%. We have mentioned all 3 of these stocks over rent days and a bounce from each was came as no surprise.
ANZ Banks certainly caught a noticeable bid tone today closing up 31c (1.2%) at $25.85, technically we still anticipate a test of the $27.50-$28 region in 2016, in line with our current positive view for the local banking sector.

ANZ Bank (ANZ) Monthly Chart

As mentioned above RIO was a noticeable laggard closing down 65c (1.4%). Unfortunately we remain bearish RIO targeting fresh lows under $36.50.

RIO Tinto (RIO) Weekly Chart

ASX 200 Movers

Source; Bloomberg

Regards,

The Market Matters Team
Level 12 28-34 O'Connell St
Sydney, NSW 2000.

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 27/05/2016. 4.20PM.

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