Afternoon Report Tuesday 3 February 2015
Please see our weekly Market Matters video - Market Update, Gold and SMSF Trading and Investing 3rd February 2015
• It was an extremely volatile session today, with the ASX200 trading as low as 5,631 before ending the day 82 points higher at 5,707 with a range of 86 points for the day.• The ASX200 closed at a 6 year high and with rates looking to fall further the next stop looks to be 5800 in line with this morning’s note on banks looking cheap on a relative yield basis.• Investors believed that the RBA would not cut interest rates today; rather it would be in the next few months. • However at 2.30pm the RBA came out with a 0.25% interest rate cut down to 2.25% leading to a buying frenzy , particularly with the high yielding stocks such as Commonwealth Bank (CBA) up 72c, or 0.8% at $90.40 after trading as low as $88.67 and Telstra (TLS) up 14c, or +2.1% at $6.67.• The energy sector soared as expected, BHP Billiton (BHP) closed $1.05, or+3.6% at $30.65 and Oil Search (OSH) up $0.35, or 4.4%at $8.33.• The retail sector also benefited today’s rate cut, along with the lower $A and oil, with Myer (MYR) ending the day 7.5c higher, or +4.8% at $1.63.
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