Afternoon Report Monday 20 October 2014
The ASX 200 followed the global markets rally from last Friday, closing 48 points higher at 5319.
The banking sector led the way, with Westpac (WBC) closing 47c higher to $33.57 and as expected, Commonwealth Bank (CBA) closed up +5% from our $73-$74 buy zone at $77.26 (see the Hickman Report),while the iron ore sector also rallied with BHP Billiton (BHP) closing 44c higher at $33.84.
The gold sector was an underperformer, with Newcrest Mining (NCM) closing 19c lower at $9.81, where we remain bearish at present.
As mentioned this morning, Transfield (TSE) announced it received a takeover bid from Ferrovial for $1.95 a share. TSE closed 40c higher at $1.90.
Meanwhile, Ausdrill (ASL) sold off, closing 10.5c lower at 76.5c after lowering its earnings guidance for the financial year due to a downturn in the mining sector.
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