What Worked Australia - 11 Nov 2016 - Beta comes up Trumps

What Worked – Yes, pun intended. Beta ran this week with high Beta names coming off a two-week losing streak and hitting an 18-month high on an excess return basis. Whitehaven Coal (WHC, +3.3%), Santos Limited (STO, +6.2%) and Worleyparsons (WOR, +8.5%) all beating the index this week, while their low beta brethren such as Regis Resources (RRL, -6.0%), St. Barbara *SBM, -3.9%) and Saracen Mineral Holdings (SAR, -3.0%) all finished weaker.

Value in all its guises was also hit hard this week, with more expensive names posting great returns. Aconex (ACX, +12.2%), NextDC (NXT, +8.5%) and Western Areas Limited (WSA, +34.2%) all finishing the week more expensive, while Seven West Media (SW#M, -0.7%), Resolute Mining (RSG, -3.1%) and Nine Entertainment (NEC, -2.1%) all finished the week looking a little cheaper…

Who Moved – The biggest week in a long time for names moving on volume, with the vast majority of them finishing the week higher. 32 names moved on significantly higher than normal volumes this week, with Western Areas (WSA, +34.2%), SIMS Metal (SGM, +20.9%) and Independence Group (IGO, +20.2%) all finishing the week with great returns, while Caltex Australia (CTX, -3.0%), Evolution Mining (EVN, -2.4%) and Premier Investments (PMV, -1.0%) all finished the week softer on strong volume.


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