What Worked Australia - 26 Aug 2016 - Reversal in Beta and move to yield

What Worked – This week saw a very strong move into high yield names, and a move into size and more profitable companies.  Spotless Group (SPO, +3.5%), G8 Education (GEM, +4.0%) and Southern Cross Media (SXL, +13.3%) all amongst the highest yielding names in the market and all producing good returns for the week. On the other end of the yield scale Mesoblast (MSB, -7.3%), Worleyparsons (WOR, -13.8%) and Western Areas (WSA, -19.7%) were all sold off quite strongly.

Beta was hurt badly, returning -3.8% on a quintile spread basis for the week. High beta names that were hurt included Whitehaven Coal (WHC, -3.7%), Santos Limited (STO, -7.2%) and Beach Energy (BPT, -9.1%).

Who Moved – Not a big week for volume this week with most names in the index sitting around average volume. 16 names managed to move on higher than normal volumes. In the winner’s circle, GWA Group (GWA, +24.7%), Ardent Leisure (AAD, +7.8%) and Slater & Gordon (SGH, +6.0%) all up versus the index, while Monadelphous Group (MND, -17.4%), McMillan Shakespeare (MMS, -14.5%) and Japara Healthcare (JHC, -10.3%) were all sold off heavily.

Summary

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