Australian Investment Blog

• A quiet session in the broader Australian Market was witnessed today, the ASX 200 closed only 3 points lower at 5536.• Investors in the insurance sector were caught by surprise with an announcement from Insurance Australia Group (IAG) that Warren Buffet's Berkshire Hathaway will acquire a $500 million strategic stake in and partnership with IAG. The deal involves a 10 year 20 per cent quota share agreement that IAG says will reduce its earnings volatility and capital requirements and will see Berkshire Hathaway take a 3.7 per cent stake in IAG via a $500 million placement.• The Banking sector outperformed most, particularly Westpac (WBC), ending its day 1.8% higher at $32.30. WBC’s rally was mostly driven by its announcement of selling its BT Investment Management (BTT) stake, generating a $600-$700m gain after tax.• The Iron Ore sector was quite the contrary, Fortescue Metals (FMG) lost 4.9% at $2.32 and RIO Tinto down 2.4% at $55.91 as Iron Ore traded in Asia was 1.5% lower.• Investors flocked to the Gold sector, where its commodity is also known as the ‘Safe Haven’ Asset, traded higher as investors remain uncertain with the global picture. i.e. Greece’s debt issues with its creditors. Newcrest Mining (NCM) closed 1.0% higher at $13.22 and Regis Resources (RRL) closed 3.1% higher at $1.15.• The ‘Telco’ Sector was the strongest link today, Vocus (VOC) – a stock we currently hold, resumed trading and closed 1.5% higher at $6.00. Please watch out for trading alerts.