What Worked – Value continued its strong run this week, and not much else saw any movement. While Div Yield managed to make it positive this week, PBR was the strongest signal by far this week generating an IC of +26%, and a quintile spread of +7.3%. Low PBR names have done particularly well over the last month, driven in large part by resources names, while the higher valued names have only come off slightly. PBR has produced positive returns for 7 of the last 8 weeks.
In the sub 1.0x Book value space this week, Bluescope Steel (BSL, +2.1%), Fortescue Metals (FMG, +6.2%) and Primary Health Care (PRY, +6.6%) where among the best performers. ROE did see a slight sell-off, in what was an almost mirror image of PBR in terms of performance. OP Growth also managed to produce a positive return for the week, with names like Alumina Limited (AWC, +6.9%) and Qantas (QAN, +6.6%) returning some strong results this week.
Who Moved – Volumes are still looking reasonable, with 29 names producing higher than normal volumes for the week. The smaller names this week produced the bulk of names trading on significantly higher volume this week. In the winner’s circle saw Mount Gibson Iron (MGX, +7.9%), Retail Food Group (RFG, +7.7%) and Premier Investments (PMV, +7.5%) all up, while Worelyparsons (WOR, -12.3%), Sandfire Resources (SFR, -7.3%) and OZ Minerals (OZL, -4.6%) all finished lower on high volume.
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