What Worked – Value showed some mixed results this week, with Dividend Yield coming through with its strongest numbers in almost 18 months. While higher yielding names did well relative to the market, there was a clear and strong sell-off in the lower yielding end, which is largely made up of the resources and energy names. Some of the worst hit include Whitehaven Coal (WHC, -%), Cardno Limited (CDD, -15.8%) and Beach Energy (BPT, -11.5%).
Forward profitability was also in the mix this week, with forward ROE doing very well. The contribution to performance was evenly spread with the low ROE names dropping, while the high ROE names beat the index. Santos (STO, -14.3%), BHP Billiton (BHP, -10.7%) and Independence Group (IGO, -11.1%) amongst the hardest hit in the low ROE space, while Amcor (AMC, +3.8%), Navitas (NVT, +5.1%) and JB Hi-Fi (JBH, +10%) amongst the high ROE winners.
12 Month momentum continued its run this week also, and while the performance was evenly spread, the sell-off in the 12 month losers was definitely deeper than the pickup in the winners.
Who Moved – 10 names moved on significantly higher volumes this week, with Lynas Corp (LYC, -10.7%), Rio Tinto (RIO, -7.5%) and Alumina Limited (AWC, -6.2%) all down on stronger than normal volumes, while GUD Holdings (GUD, +6.2%), ANZ Bank (ANZ, +3.6%) and Japara Healthcare (JHC, +1.4%) all advancing on good volume.
PDF Report available here: Download