Afternoon Report / Woodside drags the market below back 6000 (WPL, QAN, JBH)

By Market Matters 14 November 17

Woodside drags the market below back 6000 (WPL, QAN, JBH)

Market Matters Afternoon Report 14th November 2017

The pullback continued today as the market followed the overnight leads, opening lower and staying lower. Buyers failed to support the market today, which has been rare in recent times, and the market closed just off its lows. Broad-based selling hit most stocks/sectors today, energy was the worst hit sector today, reasons for which we will talk about later, while Tech was the only sector to finish higher, adding 1.4% today driven by positive commentary out of Computershare’s AGM. Overall today, a range of +/- 46 points, a high of 6013, a low of 5957 and a close of 5968, down 53pts or -0.88%.

ASX 200 Intra-Day Chart

ASX 200 Daily Chart

The energy names in particular struggled today after Shell sold it’s $3.5 billion stake in
Woodside (WPL) at a considerable discount, pushing the shares down 3.2% for the day. Shell’s stake was taken by institutional investors who clearly took to the market today, selling across the board in order to fund the new allocation as was foretold in the morning report. We have been looking for a way back into the energy market since our sale of Santos a few weeks ago, and this weakness presented a great opportunity to get back on board, and a great left field pick for the income portfolio, paying 4.49% FF.

Woodside (WPL) Daily Chart

Qantas (QAN) fell to a near 7 week low after the announcement that the flying kangaroo will be dropped from the MSCI index. This is not necessarily a negative on the stock, only a short term drag as it falls off the list of holdings for a number of active and passive funds.

Qantas (QAN) Daily Chart

Retailers were also hit hard after Amazon announced they were near launch in Australia yesterday. This is a big overhang on both retail and landlord stocks in the current market, however we remain comfortable with our holdings in the both sectors within the income portfolio due to a range of stock specific reasons. JB Hi-Fi was the worst hit, falling 2.6%.

JB Hi-Fi (JBH) Daily Chart

Have a great night

The Market Matters Team


Market Matters may hold stocks mentioned in this report. Subscribers can view a full list of holdings on the website by clicking here. Positions are updated each Friday, or after the session when positions are traded.


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 14/11/2017.  5.00PM.

Reports and other documents published on this website and email (‘Reports’) are authored by Market Matters and the reports represent the views of Market Matters. The MarketMatters Report is based on technical analysis of companies, commodities and the market in general. Technical analysis focuses on interpreting charts and other data to determine what the market sentiment about a particular financial product is, or will be. Unlike fundamental analysis, it does not involve a detailed review of the company’s financial position.

The Reports contain general, as opposed to personal, advice. That means they are prepared for multiple distributions without consideration of your investment objectives, financial situation and needs (‘Personal Circumstances’). Accordingly, any advice given is not a recommendation that a particular course of action is suitable for you and the advice is therefore not to be acted on as investment advice. You must assess whether or not any advice is appropriate for your Personal Circumstances before making any investment decisions. You can either make this assessment yourself, or if you require a personal recommendation, you can seek the assistance of a financial advisor.  Market Matters or its author(s) accepts no responsibility for any losses or damages resulting from decisions made from or because of information within this publication. Investing and trading in financial products are always risky, so you should do your own research before buying or selling a financial product.

The Reports are published by Market Matters in good faith based on the facts known to it at the time of their preparation and do not purport to contain all relevant information with respect to the financial products to which they relate. Although the Reports are based on information obtained from sources believed to be reliable, Market Matters does not make any representation or warranty that they are accurate, complete or up to date and Market Matters accepts no obligation to correct or update the information or opinions in the Reports.

If you rely on a Report, you do so at your own risk. Any projections are estimates only and may not be realised in the future. Except to the extent that liability under any law cannot be excluded, Market Matters disclaims liability for all loss or damage arising as a result of any opinion, advice, recommendation, representation or information expressly or impliedly published in or in relation to this report notwithstanding any error or omission including negligence.

To unsubscribe. Click Here