What Worked Australia - 12 Feb 2016 - Momentum back in Favour

What Worked – In what has been a pretty terrible week for equity markets around the globe, Australia has not been spared by any means. Momentum fared well for the week, driven equally by a sell-off in the laggards, and a good helping of outperformance in the winners. All guises of momentum saw good headline numbers this week, although it was the shorter term (1 Month Price Momentum and 1 Month Earnings Revision Momentum) that took the show. With a slew of negative interest rate talk around, the finance sector took the worst of it this week, although likely more of a contagion affect from their European and US cousins than any real threat of it happening in Australia. Already the focus of a good sell-off, Magellan Financial (MFG, -9.1%), Macquarie Group (MQG, -8.3%) and Henderson Group (HGG, -12.5%) where amongst the worst affected, while the miners rebounded – Northern Star Resources (NST, +16.7%), Evolution Mining (EVN, +22.4) and Independence Group (IGO, +17.7%) were are the top of the list.

 

Who Moved – 27 names posted substantially higher than normal volumes this week, and for the most part ended the week lower than they started. OzForex (OFX, -39.2%), Bank of Queensland (BOQ, -16.9%) and Computershare (CPU, -13.9%) faring the worst, while Evolution Mining (EVN, +22.4%), Ansell Limited (ANN, +13.4%) and Cochlear (COH, +11.7%) all came out on top.

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