Phew its Friday, only 4 more days until the US election!
What Mattered Today
Another very disappointing day for the local market as we fell 45-points (0.9%), the US appears scared of a Trump victory BUT we feel almost petrified! The local market has closed down 103-points (1.9%) for the week while the Dow is only down 1.3% going into tonight's session and they have not particularly benefited from the rally in gold stocks.
Today was a very lacklustre session with a complete lack of buying pushing the market lower as opposed to the aggressive selling that we have seen of late. NAB fell 2.5% more than its dividend today a typical phenomenon for November that we have pointed out recently. The Energy Sector was also weak today falling over 1% as investors lose confidence with OPEC. After the recent BREXIT surprise investors feel very concerned of a Trump victory next week.
More hand grenades were yet again thrown at local investors with the 2 unfortunate standouts Mayne Pharma Group (MYX) falling 15.5% and Flight Centre not too far behind down 8%. At least there was one standout on the positive front as Orica made fresh highs for 2016 after announcing a healthy $340m profit.
ASX 200 intra-day chart
Mayne Pharma was smacked after climbing 7% yesterday as investors fled the stock following news of a US Department of Justice Investigation into price collusion in the generic drugs market. This is in the too hard basket for us especially as many investors were bullish the stock making aggressive buying of weakness feel unlikely - they are currently long and wrong and we feel for them.
Mayne Pharma Group (MYX) Monthly chart
Flight Centre (FLT) has become a serial dissapointer recently and the stock is down ~50% from its 2014 highs. Today FLT fell after the travel agent warned its annual underlying profit was likely to fall because airlines are offering so many discounted international airfares. FLT is another stock we would rather avoid at present.
Flight Centre (FLT) Monthly chart
Oricas strength today comes from yet more cost cutting but the stock remains clearly neutral to us, especially after recent gains.
Orica Ltd (ORI) Monthly chart
Sectors
ASX 200 Movers
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 3/11/2016 5.25PM
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