What Worked Australia - 28 Oct 2016 - Momentum reversal as div yield bounces

What Worked – This week saw both long and short term momentum signals reverting in a poor week for the index overall. Momentum was largely hurt by profit taking in the names that were up over the last 12 months, while there was some buying into the laggards. One year performers that were hurt this week included Galaxy Resources (GXY, -4.3%), Resolute Mining (RSG, -9.9%) and Credit Corp Group (CCP, -10.0%), while Estia Health (EHE, +0.4%), Spotless Group (SPO, +1.0%) and Incitec Pivot (IPL, +1.4%) all managed to make positive returns for the week.

Dividend Yield, while it has been back and forth over the last month, finally saw an uptick in the higher yielding names in the market, however the numbers where largely driven by a sell-off in the low yielding space. Low yielding names that were hit this week included Australian Agricultural Company (AAC, -11.5%), Orocobre Limited (ORE, -8.6%) and Syrah Resources (SYR, -11.9%).

Who Moved – This week saw 14 names from the moving on higher than normal volumes. Four names managed to end the week in the positive, and included Aconex (ACX, +10.7%), Corporate Travel management (CTD, +3.4%) and Macquarie Atlas Roads (MQA, +1.7%), while Bega Cheese (BGA, -20.6%), Ardent Leisure group (AAD, -17.9%) and Wesfarmers Limited (WES, -8.6%) all finished the week significantly down and backed by volume.


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