What Worked Australia - 07 Oct 2016 - Beta and Short term momentum rockets

What Worked – This week saw Beta moving strongly, along with names that have done well over the last month. Metals and miners took off this week, and not a small cap driven move either. Santos (STO, +10.8%), South32 Limited (S32, +5.4%) and Beach Energy (BPT, +8.4%) just some of the high beta names that well outperformed the index this week. While the names that have performed well over the last month have done well this week, the biggest movers were in the names that have underperformed. TPG Telecom (TPM, -4.8%), Vocus Communications (VOC, -6.4%) and Bluescope Steel (BSL, -4.1%) were sold off further this week.

Names with strong EPS Revisions over the last 3 months also saw a selloff this week. Amongst them, Saracen Mineral Holdings (SAR, -15.6%), Independence Group (IGO, -5.7%) and Newcrest Mining (NCM, -5.6%) all hit this week, and all having very strong earnings revisions.

Who Moved – Not a big week for names moving on volume being a shorter trading week. Only 4 names out of the 200 managed to move on significantly higher than normal volumes. For those coming off this week there was Syrah Resources (SYR, -16.4%) and TPG Telecom (TPM, -4.8%), and those finishing the week higher were Henderson Group (HGG, +13.4%) and Southern Cross Media (SXL, +5.1%).


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