Australian Investment Blog

• It’s been a case of déjà vu each day. So far this week, selling has been led by the SPI futures in the morning, the norm at present. • The ASX 200 closed at its session lows, down 79 points (-1.4%) at 5504.• A tiny bit of light at the end of the tunnel peeped before midday, Australia’s trade deficit surprised most and widened. This gave investors the impression of room to cut interest rates further in the future. However, this was short lived after Hong Kong’s benchmark started to slide after reports of further margin lending tightening was being enforced by more financial services firms.• In the banking sector, National Australia Bank (NAB) lost another 2.1% to $32.32 and Commonwealth Bank (CBA) down 1.3% to $80.54. As mentioned to subscribers via live alerts, we had purchased a portion of a bank as it has reached our buy target for accumulation.• The Iron Ore sector slid, Fortescue Metals (FMG) bleeding heavily and losing 6.2% to $2.28. We remain traders of this sector, not investors and have no interest at present.• In the Consumer Discretionary space, Metcash (MTS) disappointed investors by announcing a write down of $640m. MTS closed 24.5c lower (-17.7) at $1.14.• Transportation Company, Qube Holdings (QUB), lost 7.6% to $2.56 after announcing to its investors that trading conditions remain challenging for the next financial year ahead.• A domino effect is now being witnessed in the financial services sector after the collapse of broking firm, BBY Ltd last month. Financial Services Software Company, GBST Holdings (GBT) announced that it is currently impacted by BBY being placed into administration as it is owed ~$640million for the services provided.