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16 September 2016 | Insights

Weekly Review 16/09/2016

Weekly Review

It was a turbulent week for investors, with the market falling by 2.24% on Monday but gaining ground on Wednesday, Thursday and Friday to finish down 0.81% at the close of Fridays trade. The move lower was led by the U.S markets, with investors betting on rate hikes in the coming months. The S&P/ASX 200 closed the week at 5296.7, 42 points lower than this time last week.

At the top end of the market, BHP Billiton (BHP.ASX) and Rio Tinto (RIO.ASX) dragged the index lower falling by 3.32% and 4.12% respectively as commodity prices slid during the weeks trade.

Australia and New Zealand Banking Group (ANZ.ASX) shares also lost ground over the week, moving 1.49% lower to close the weeks trade at $26.36.

The biggest news event over the period came on Tuesday, with electronics retailer JB Hi-Fi Ltd (JBH.ASX) announcing that it was to buy home-appliance chain The Good Guys for 870 million Australian dollars (US$658 million) in cash. The company said that they plan to fund the deal through an A$394 million entitlement offer as well as taking on A$500 million in debt. JB Hi-Fi closed up 0.92% for the week, at $30.00.

Staff at Baker Young spoke with several company’s during the week, including a meeting with dorsaVi Ltd’s (DVL.ASX) CEO Andrew Ronchi. The company has developed an analytical technology that utilises wearable sensors and intelligent software to track muscle activity and movement. Andrew explained in his presentation that the company has three product areas, which are tailored to service occupational health and safety, elite sports and clinicians, with all three having significant market sizes. DorsaVi operates across Australia, U.K and the U.S with all three regions seeing significant growth and Andrew was confident that there will be further growth across these markets, particularly in the U.S. Over the last twenty four months the company has won significant contracts with well known brands such as Toyota, Crown Casino, BHP Billiton, Golden State Warriors and Manchester United.

Staff also had a meeting with Codan Limited (CDA.ASX) with the company speaking to the diversification of its revenue away from one-off contract wins. The company has been able to stabilize its revenue, reporting consistent growth over several periods. Codan has seen several new contract wins in recent history as its shares have trended significantly higher since the beginning of the year, adding 110.29% over the period.