What Worked Australia - 05 Aug 2016 - Growth off while Beta moving

What Worked – This week saw high growth names flat to market, while the low growth names beat out the index. OP Growth in particular returned its second lowest IC number in over a year, and the non-energy materials space saw a lot of the positive movement. Western Areas (WSA, +8.1%), Santos Limited (STO, +6.2%) and Genworth Mortgage (GMA, +8.3%) all forecasting negative OP growth for the coming fiscal year, and all posting good returns for the week.

In terms of Beta, the names with higher beta where naturally up with the market, while the lower beta names remained relatively flat. Beta itself has had a very good run over the last 6 months generating a spread of +2.0% above the market. High beta names like Whitehaven Coal (WHC, +10.7%), Origin Energy (ORG, +2.0%) and Seven Group Holdings (SVW, +11.5%) all up substantially for the week.

Who Moved – 18 names managed to move on higher than normal volumes this week, with 11 names down and 7 up. On the negative side, Seven West Media (SWM, -22.0%), Nine Entertainment (NEC, -9.6%) and REA Group (REA, -7.6%) all down on very high volume, while MMA Offshore (MRM, +18.6%), Virtus Health (VRT, +1.0%) and Qube Holdings (QUB, +4.1%) all up on significantly higher than normal volumes.


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