Atlantic Pacific Securities client adviser Gary Huxtable says that while the blue chips are supporting the market, the real movers today are stocks that have been oversold in the last few sessions.
“We’ve seen a rotation out of the healthcare sector and growth stockstrading on high forward earnings valuations over the last few sessions. Butwe’re now seeing some buyers coming into these stocks again.”
These stocks include Healthscope, ASG Group and Crown, he says.
But Huxtable cautions that these types of moves are typical amid market and sector rotation.
“There is a strong possibility we could be witnessing a dead cat bounce here,” he said.