Afternoon Report Tuesday 22 June 2015
• The rally resumed today in the ASX200, jumping 15 points higher from the barrier at open, reaching as high as 5690 and finishing the day 74 points higher at 5684.• The buying frenzy was mostly global macro driven, with reports of a new proposition by Greece in attempt to dodge a default with its debts to its creditors. Japan is currently trading at its 15-year high, currently up 1.8% on the hopes of the Greece deal to be agreed with.• The banking sector contributed to much of the broader market’s rally, Commonwealth Bank (CBA) closed $1.74 (2.1%) at $86.76 and Westpac (WBC) up $0.58 (+1.8%) at $33.70.• The major iron ore players, BHP Billiton (BHP) and RIO Tinto (RIO) ignored iron ore’s weakness in Asia trade (down 0.6%), both ending 1% higher at $28.61 and $56.34 respectively. Fortescue Metals (FMG) however, lost 0.9% to $2.18.• Another profit downgrade was announced today, Flight Centre (FLT) lost 13.6% to $35.71 – almost $600m was wiped today! • Vocus (VOC) closed 0.5% higher at $5.87 after the Federal court had no objections with finalising the merger with Amcom. We currently hold VOC.
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