Afternoon Report Thursday 7 August 2014
It was a choppy day today, with the ASX 200 closing down only 3 points to 5,509 and the day’s range at 39 points.
Today, the employment data for July was released, which was worse than expected. This negative data brought a bullish tone to equity investors, as they now anticipate further rate cuts.
The banking sector continued to contribute much of the ASX 200 weakness, with National Australia Bank (NAB) down 18c to $34.45.
Flexigroup (FXL) closed up 8c to $3.85 after reporting its FY14 earnings, down 13% from previous year however, positive future growth is seen. We see better risk / reward opportunity seen elsewhere.
Tabcorp (TAH) closed up 11c to $3.56 and reported a net profit of $129.9m today for FY14. We remain neutral to bearish on TAH at present, targeting the $2.50 area minimum.
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