Afternoon Report Wednesday 1 July 2015
• The ASX 200 had strong start to the financial year, charging 57 points higher (+1%) to 5,516.• The leading news today was Asciano Ltd (AIO) announcing a takeover bid of A$8.83b by Brookfield Asset Management (BAM.US), which is worth approximately A$9.05 a share. Negotiations are continuing and for holders, we would be happy to sell into the $8.50-$9.00 area.• The banking sector led the broader market higher, after ANZ paying its dividend today, with further free cash to come this week from dividends. We are short term bullish the ASX 200 this week.• As mentioned this morning, the Iron Ore sector underperformed, BHP closed 40c lower (-1.5%) at $26.65 and Fortescue (FMG) down 8c (-4.2%) at $1.83, near its recent new lows of $1.75. We remain traders of this sector rather than investors.
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