What Worked Australia - 08 Apr 2016 - Large Cap Momentum continues to run

What Worked – Value continues its selloff this week, while there is a distinct move into the large momentum names. Evolution Mining (EVN, +8.8%), Northern Star Resources (NST, +6.8%) and Sitex Medical (SRX, +8.0%) amongst some of the largest names in the index that continued their 1 year run higher this week.

Value weakened further this week also, but is yet to come close to erasing the run from the start of this year. Sydney Airport (SYD, +0.9%), APA Group (APA, +2.4%) and Technology One (TNE, +2.3%) are some of the most expensive names in the index on a forward PER basis that continued higher this week, while the other end of the scale saw a sell-off in the cheaper end of the market. Regis Resources (RRL, -2.5%), Treasury Wine Estates (TWE, -3.5%) and Domino’s Pizza (DMP, -2.2%) amongst the worst affected.

Who Moved – Volumes are still struggling to come through in the market at the moment, with only 5 names in the index moving on higher than normal volumes. Nine Entertainment (NEC, -26.0%), SAI Global (SAI, -5.4%) and McMillan Shakespeare (MMS, -3.2%) moved down on significant volume, while Sigma Pharmaceuticals (SIP, +2.4%) was the only named that advanced backed by volume. Bega Cheese (BGA, +1.4%) posted a positive return for the week on much weaker than normal volumes.


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