Afternoon Report 5 May 2014
The ASX200 posted early gains, only to be sold off throughout the afternoon on weaker than expected building approvals and disappointing Chinese PMI data.
Westpac (WBC) reported an 8% increase in its cash profit to $3.77B. Although it came broadly in line with analysts' expectations, Westpac traded lower and dragged the banking sector down with it. WBC closed -1.2% or -42c at $34.45.
Aquila Resources (AQA) traded +36.3% to $3.34 after receiving a $3.40 per share cash bid from China's Baosteel and Australia's Aurizon. For current shareholders, we are happy to take profit around these levels.
As foreshadowed this morning, the gold sector had a good day on the back of Friday's jump in gold futures. We are not keen on trading this sector at present and remain bearish near-term.
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