Australian Investment Blog

• A volatile session was experienced in the Australian Market today. The ASX 200 had a range of 62 points, trading as high as 5673 and as low as 5611, before closing 44 points lower (0.8%) to 5616.• An aggressive sell off was witnessed early this morning, prior to the RBA minutes indicating it still has room to cut interest rates, reversing its day’s loss by midday. However, the rally was short lived and selling continued in the broader market.• The banking sector helped lead the broader market lower, National Australia Bank (NAB) being the main culprit, finishing its day 1% lower to $33.67.• The supermarkets continue to disappoint, Metcash lost 2.9% to $1.36, Wesfarmers (WES) down 1.8% to $43.71 and Woolworths (WOW) down 2.6% to $28.10. We remain bearish this sector as mentioned in yesterday’s report.• After the volatile day with BHP yesterday, the split stock South 32 (S32) picked up the pace today and finished the day up 13.7% at $2.33 as the ASX200 welcomes its new addition to its party (index). Meanwhile BHP continued to be sold off and finished the day 1.7% lower at $29.63, possibly due to reweighting by index tracking funds. • Bega Cheese (BGA) rolled down the hill by 4.1% to $4.67 after lowering its profit guidance this morning.