Afternoon Report Tuesday 7 July 2015
• It was a pleasant and strong session in the ASX 200 today ending 106 points higher (+1.9%) at 5,581.• The broad rally was likely seen from global investors exiting China and reweighting back in other Asia-Pacific counterparts after trading was halted in more than 25% of shares listed in China in an attempt to stem the tide of selling in their equities market. That’s close to 800 stocks on halt!• One could be forgiven in thinking that all is right with the world after today’s performance. Having seen the price of oil and iron ore down last night, we still witnessed BHP Billiton (BHP) and RIO Tinto (RIO) both up on the day (BHP +0.9% and RIO +1.1%). Fortescue Metals (FMG) rallied 4.25% at $1.78 – refer to morning comments. In the energy sector, Woodside Petroleum (WPL) closed up 52c (+1.5%) at $34.64 and Oil Search (OSH) up 21c (+3%) at $7.00. It was just one of those days!• Banks were strong across the board - Westpac Bank (WBC) the strongest link, up $1.27 (+3.9%) to $33.76, while Commonwealth Bank (CBA) shot out of the gates at the start, finishing up $1.39 (+1.6%) to $87.69. • Financial Services, IOOF (IFL) resumed its descent, finishing on its day’s lows at $3.27, after fronting a senate economic committee inquiry. • In the Consumer Discretionary space, Myer (MYR) rallied 6.2% at $1.29. We currently hold this as a trade only.
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