What Worked Australia - 8 Jul 2016 - Value comes off as market jumps into momentum

What Worked – – A very big move into momentum this week in with the shorter term one month momentum posting a +4.5% return spread for the week. There was strong buying into the names that have been up over the last month, and to a lesser extent a selloff in the names that have underperformed. This space is largely dominated by the resources stocks, and those that furthered their already good lead over the market this week included Beadell Resources (BDR, +16.5%), Whitehaven Coal (WHC, +18.9%) and Evolution Mining (EVN, +14.0%). On the other end, names that furthered their one month loss this week include Henderson Group (HGG, -5.3%), Sirtex Medical (SRX, -0.9%) and GWA Group (GWA, -4.1%).

Value was also beaten up this week as is usually the case in momentum focused trading on the index. Some of the cheaper names that took a hit include Flexigroup Limited (FXL, -5.1%), Lendlease (LLC, -3.4%) and National Australia Bank (NAB, -3.3%), while some of the most expensive names became more expensive, among them Newcrest Mining (NCM, +8.9%), REA Group (REA, +5.3%) and Macquarie Atlas Road (MQA, +5.6%).

Who Moved – Volumes were not around to the same levels as last week with only 13 names posting significantly higher than normal volumes. On the positive side, Western Areas Limited (WSA, +10.5%), Atlas Iron (AGO, +5.0%) and Tatts Group (TTS, +2.8%) all finished higher on strong volumes, while CIMIC Group (CIM, -11.9%), Henderson Group (HGG, -5.3%) and Lendlease (LLC, -3.4%) all finished down.

Summary

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