Retail Sales Paint a Disturbing Picture for Australia – JBH, HVN, WOW
Local stocks were extremely quiet today, with the turnover of the recently influential SPI futures well under half of yesterday. We finally closed unchanged, with gains in the financials and resources offsetting weakness in the banks. The market continues to hover less than 1% above its 20-week low. The big story today was the retail sales figures which posted their largest fall since March 2013, plunging 0.6% for August, giving us the largest 2-month decline in 7 years – remember we have been warning at nauseam that the average Australian has the lowest amounts of “free cash” in their pocket for decades. Today we will take a glance at 3 local retails stocks to show our current thoughts towards the sector.
From a MM perspective it was encouraging to see decent days from both of the stocks we purchased yesterday with Regis Resources (RRL) gaining +2.8% and Santos (STO) +1%.
The ASX 200 had a range of +/- 22 pts, a high of 5673, a low of 5650 and an unchanged close at 5651.
ASX 200 intraday Chart
ASX 200 Daily Chart
1 Harvey Norman (HVN) $3.82
No change with HVN from this morning, we will be looking to accumulate HVN around / under $3.50.
Harvey Norman (HVN) Weekly Chart
2 Woolworths (WOW) $24.68
WOW is looking more and more vulnerable to further losses and we have no interest until well under $20.
Woolworths (WOW) Weekly Chart
3 JB HIFI (JBH) $22.68
JBH is a stock we still have no interest in owning.
JB HIFI (JBH) Monthly Chart
Have a great night
The Market Matters Team
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