Quiet session while the Victorians are on Holidays
The ASX200 was very quiet today, with most Victorians on holiday for Labour Day. The ASX200 drifted lower, especially in the first hour, once traders realised that the recent buying in our bank stocks was absent. By the day's end the ASX200 closed -0.32% led by the Energy -1.2%, Real Estate -1.07% and Healthcare -0.8%. A range today of 47, a high of 5792, a low of 5745 and a close of 5757, off -18 points or -0.32%
The notable exception in the Financial Sector was Macquarie Bank (MQG) which closed up 47c at $89.42. We are long MQG, looking to take profit ~$90,50 which is rapidly coming into sight.
However, the resources recovered from early losses to close in the black with the Materials Index closing up 0.1%.
ASX 200 intra-day chart
ASX 200 daily chart
We were again active in the market today, buying an additional 2% RIO ~$58.40, it was pleasing to see the stock recover 95c from its lows to close positive on the day at $59.16 - this takes our holding in RIO to 5% of our portfolio. We would not be surprised to see RIO end the week over the psychological $60 level.
Fortescue Metals (FMG) was a standout today, showing how quickly it can turn, temporarily breaking under $6 before rallying hard and eventually closing at $6.15 - at one stage the stock rallied 4.3% from its low. We always are happy to take our trading money early in this volatile beast!
RIO Tinto (RIO) Weekly chart
Last but not least, the gold sector had an excellent lift with RRL +5%, EVN +6.8% and NCM +4.6%.
While today's rally does not prove our recent foray into the precious metal sector, via EVN and RRL, will eventually prove fruitful today's reaction after the last 2 weeks aggressive sell-off does feel like a classic low.
Regis Resources (RRL) Weekly Chart
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