Afternoon Report Tuesday 12 May 2015
• Buying returned today, as investors saw some value around the lower levels of 5600 in the ASX 200, having ended 50 points higher (+0.9%) to 5675.• The financial sector reversed some of its recent downfall; Macquarie Group (MQG) closed 2.5% higher at $80.75, Commonwealth Bank up 0.9% at $82.88, while National Australia Bank (NAB) only closed at $34.54 after completing its equity raising and trading ex. rights.• The Resource sector continued to outperform after another good rise in Iron Ore last night, and contributed to the overall strength in the ASX200 – BHP ended 2.2% higher at $32.53 and RIO up 1.1% at $59.25.• Plenty of activity continues to be witnessed in the “Telco” space, Telstra (TLS) rallied 1% higher at $6.11, whilst Teoh, a founder of TPG Telecom (TPM) increased its strategic stake in Amcom (AMM) to 19.9%, forecasted to be taken over by Vocus (VOC) should its shareholders vote in favour for the acquisition.• The world’s largest supplier of mining explosives, Orica (ORI) rallied 3.5% to $20.89 despite downgrading its earnings guidance and a possibility of reducing its ammonium nitrate supply.• Qantas (QAN) soared 7.2% higher at $3.56 after it announced a potential capital return to its investors this year, having been on track to reduce its debt by $1B by FY15.
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