Afternoon Report Tuesday 16 September 2014
The local market continued its weakness for the week, with the ASX 200 closing 28 points lower at 5,445.
As predicted, the "yield play / carry trade" dragged the ASX200 lower again, with the banking sector again leading the declines e.g. Commonwealth Bank (CBA) closing 73c weaker at $78.19.
Two large cap sell downs also hurt the market today, with Ramsay Healthcare (RHC) closing down $1.93 at $49.10 after Paul Ramsay Holdings sold 4.4 million shares at $49, worth over ~$216m and Anchorage Capital selling its ~47.3m stake of Dick Smith Holdings (DSH) at $2.22, a total of ~$105m with DSH closing down 6c at $2.23.
The iron ore sector was the strongest link today, with BHP closing 10c higher at $35.74 helped by a weakening $A. We remain on the sidelines with the iron ore sector, as the market could be ignoring the possibility of the commodity dwelling at the US$80/t level for the long term.
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