Market Matters Afternoon Report Tuesday 30th August 2016
Good Afternoon everyone
Market Data
What Mattered Today
The ASX200 regained some of yesterday’s lost ground, rallying 0.17%, but unfortunately again underperforming the US indices, who rallied 0.5% overnight to close within a whisker of their all-time high. The major market stand-outs today were, for a second day, in the aged care space and regrettably again for all the wrong reasons as investors unceremoniously sold the sector - Estia Health (EHE) -15.1%, Gateway Lifestyle (GTY) -11.5% and Regis Healthcare (REG) -3.5%.
We reiterate our previous comments that we see no reason to buy stocks in this sector.
Estia Health (EHE) Weekly Chart
Market stalwart Ramsay Healthcare (RHC) was a bright light for the market today, hitting a record all-time high of $82.26 and closing up $5.86 (+7.7%), after they announced an increase in annual profits of 17% from strong growth in patient visits.
We remain bullish with stops now under $73.50.
Ramsay Healthcare (RHC) Monthly Chart
At Market Matters, we were active in the market today, switching our CSR Ltd (CSR) position to Vocus (VOC) and purchasing Bendigo Bank (BEN) outright. We reiterate our past comments that the second half of 2016 is likely to generate the best results by adopting a more active approach.
1. We sold our CSR position as the stock has lost upside momentum and a pullback towards $3.30 now looks a possibility, we flagged this sale in recent reports.
2. We used the funds from the exit of CSR to average our holding in VOC, taking our holding to 10% market weight with an average ~$7.95. Again, this purchase / switch was flagged in recent reports, at today's prices, it’s simply our view that VOC represents better value than CSR.
CSR Ltd (CSR) Monthly Chart
Vocus Communications (VOC) Weekly Chart
3. This morning we purchased Bendigo Bank (BEN), our "Standout Chart" from the weekend report and we’re very happy to see the stock rally 22c (2.1%) intraday, to close at $11.05. As we have been discussing recently, we feel it's time for the banks to outperform in the ASX200 and BEN looks a standout at present, especially with a 34c fully franked dividend looming in early September.
Bendigo Bank (BEN) Monthly Chart
ASX 200 Intra-Day Chart
On the market today, we had a range of +/- 35 points, a high of 5504, a low of 5469 and a close of 5478, up +9 points or ++0.17%.
Sectors
Source; Bloomberg
ASX 200 Movers
Select Economic Data – This week 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 30/08/2016. 5:00AM.
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