Afternoon Report 28 January 2015
**Please view our midday commentary on Interest rates and Telstra buy (TLS), plus any opportunities in the commodities space?**
• The ASX 200 opened lower, and traded as low as 5521 only to reverse and close 6 points higher at 5553 as the hunt for yield continues.• The reversal in today’s market were due to:
o A weaker CPI data reported – drawing investors further in a likelihood favour of an interest rate cut in next week’s February RBA meeting.o Stronger than expected U.S. earnings after market with Apple and Yahoo. The S&P futures are currently trading 0.7% higher at 2,043.
• The banking sector had a stellar run today, reversing earlier losses, only to close in positive territory. Commonwealth Bank (CBA) traded as low as $86.80 and closed 7c higher from previous close at $87.70, after touching an all-time high of $87.97.• Consumer Staples were the weakest link, with the major supermarket chains, Wesfarmers (WES) and Woolworths (WOW) down 0.6% at $43.45 and down 2.8% at $31.54 respectively.• Bradken (BKN) had better days, losing $1.47 a share, or -36% at $2.64 after a takeover bid for the company ceased due to the current volatile market.• Qantas (QAN) rallied 4.2% higher at $2.48 as analysts and investors continue to revise their earnings forecast due to the lower fuel costs benefiting the company and (some of) its passengers.• In the gaming sector, we seemed to have witnessed a switch out of Echo Entertainment (EGP), down 2.5% at $3.97, into Crown Resort (CWN) up 7.5% at $13.70.
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