Market Matters Afternoon Report Wednesday 30th March 2016

Afternoon Report 30/03/2016

Market Matters Afternoon Report Wednesday 30th March 2016

Good afternoon everyone

Market Data

ASX 200	5,010.30	Best Sector
ASX % Change	0.12	Health Care	+1.09%
ASX Point Change	5.78	Utilities	+0.66%
ASX High	5,058.80	Industrials	+0.66%
ASX Low	4,989.90	Worst Sector
Value	$3.89B	Consumer Staples	-0.34%
		Telcos	-0.37%
June SPI Futures	4,991.00	Energy	-1.54%
AUD/USD	0.7626
June S&P E-mini Futures	2,047.75	RBA Cash Rate	2.00%

What Mattered Today
1. Not sure what to make of today’s session really with some early optimism, a weak patch in the middle of the day and a late but fairly anaemic spurt higher into the close – with the index finishing up +6pts, and importantly above the 5000 market at 5010
2. Healthcare was good, Energy coys were weak while the rest of the market was fairly muted

Source; Bloomberg

3. We get the feeling that selling pressure which has come largely from the banking space is starting to lose some steam with a few obvious large lines on the buy side – particularly in the banking space ticking through late in the day.
4. Resources were soft on the whole, but a few brighter patches were obvious, particularly in the Golds. We’ve got Regis Resources (RRL) in the portfolio which added +4.62% today to close at $2.49 – but more importantly we saw it outpace its peers. Ideally, the sign of stocks strength is shown by the relative performance with its peers in up and down days – RRL has shown relative strength in a choppy market.

5. It is a trading stock so we will look to take profits into strength – if that prevails over the next few days/week. Subscribers should watch out for alerts via text & email.
6. We covered the upcoming flow of dividends in recent reports, and the idea that we shouldn’t get too bearish this market while that is playing out.
7. Tomorrow we see investors paid dividends for Commonwealth Bank (CBA), BHP (BHP), Origin Energy (ORG), Bendigo Bank (BEN) & Tatts Group (TTS) for a combined amount of $4.89bn ($3.38bn of this is CBA).
8. To give some context around the size of this, we did total value today of $3.89bn. We also see Telstra (TLS) drop $1.90bn into investor accounts on Friday….So this should provide some support to the ASX into the back end of the week.

Stocks On The Move
1. Virgin Australia (VAH $0.34, -9.33%) – Flying on one engine it seems

We discussed relative performances above when looking at Gold stocks, and its again relevant when looking at Virgin Australia versus Qantas…
Today we had Virgin announce that Air New Zealand would sell its 26% stake in the airline amid tensions about Virgin’s lacklustre performance – which in fairness, seem legitimate.
What’s interesting is the share price performance (down) plus with Air NZ out the picture, it opens VAH up for a potential bid from its other major shareholders of Etihad or Singapore Airlines
The market right now doesn’t think that will happen, but it’s worthwhile considering….Normally, we’d stay well away from airlines and the obvious outperformance by Qantas (QAN) is a concern, however VAH certainly has some corporate appeal post the exit of Air New Zealand…one to watch

ASX 200 Movers

Winners
St Barbara Ltd (SBM)	+$0.15, or (+4.7%) to $2.07
Mineral Resources Ltd (MIN)	+$0.32, or (+5.4%) to $5.94
Regis Resources Ltd (RRL)	+$0.11, or (+4.6%) to $2.49
Sirtex Medical Ltd (SRX)	+$1.23, or +4.4%) to $28.23
Evolution Mining Ltd (EVN)	+$0.065, or (+4.4%) to $1.55
Newcrest Mining Ltd (NCM)	+$0.47, or (+2.9%) to $16.79
AUB Group Ltd (AUB)	+$0.06, or (+0.7%) to $8.07
Spark Infrastructure Group (SKI)	+$0.03, or (+1.5%) to $2.09
IRESS Ltd (IRE)	+$0.28, or (+2.5%) to $11.48
OZ Minerals Ltd (OZL)	+$0.12, or (+2.4%) to $5.14

Losers
Whitehaven Coal Ltd (WHC)	-$0.015, or (-2.3%) to $0.645
Metcash Ltd (MTS)	-$0.04, or (-2.3%) to $1.695
Woodside Petroleum Ltd (WPL)	-$0.68, or (-2.6%) to $25.96
News Corp (NWS)	-$0.47, or (-2.6%) to $17.35
Pact Group Holdings Ltd (PGH)	-$0.14, or (-2.8%) to $4.90
BT Investment Management Ltd (BTT)	-$0.28, or (-2.9%) to $9.45
Caltex Australia Ltd (CTX)	-$0.98, or (-2.9%) to $32.78
APN News & Media Ltd (APN)	-$0.02, or (-3.1%) to $0.63
Sims Metal Management Ltd (SGM)	-$0.31, or (-3.5%) to $8.63
Select Harvests Ltd (SHV)	-$0.4, or (-8.7%) to $4.22

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

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