Market Matters Afternoon Report Wednesday 6th April 2016

Afternoon Report 06/04/2016

Market Matters Afternoon Report Wednesday 6th April 2016

Good Afternoon everyone

Market Data

What Mattered Today

A better Oil price overnight and a rally in Asia today (+2.5%) prompted some decent buying in the energy sector with the likes of Oil Search (OSH) up +5.29% at $6.37 and Santos up +3.94% at $3.69…We like Oil Search (OSH) as an energy exposure but we’re reluctant to spend $$$ given our overall cautious views.

Banks were softish – particularly Westpac (WBC) down -1.54% suffering from allegations that it manipulated the bank bill swap rate – the same allegations lobbed at ANZ a few months ago….ANZ was actually up today (+0.36%), presumably on relief that it’s not the only one in ASIC’s sights…

Volume was low, but a positive day overall with the index up smalls – so a good result despite a weak lead from the U.S market overnight. S&P FUTURES are actually up +0.47% at time of writing which is pointing to a positive start in the U.S

The 5000 level on the chart now becomes obvious resistance and as long as the market remains below that level, we’ll continue to be cautious – and have a reasonably high cash allocation.

Stocks & Sectors Today

source; Bloomberg

Credit Suisse are hosting their annual Asian Investment Conference in Hong Kong this week (5-8th April) and we saw Healthscope (HSO) present today – and the stock rallied +3% on the back of it. HSO currently resides in the Market Matters portfolio – however we’re targeting around $2.85 as a potential exit price (current $2.69)

To give some context around the business, here’s a few of the better, bigger picture slides that backed their presentation today…

ASX 200 Movers

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 6/4/2016 4:13pm
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