Afternoon Report Wednesday 16 July 2014
The ASX 200 was sold off early in the session, recovering earlier losses to close up 8 points.
China reported better than expected June Quarter GDP data which helped the resource sector trade higher throughout the day.
Fortescue Metals (FMG) closed up 27c to $4.58 and was the strongest stock in the resource sector on the back of positive China data and a quarterly production report coming in as expected. We are still happy sellers of this stock into current strength, around current levels.
The banking sector again dragged on the market again with Westpac (WBC) down 18c to $33.89 and ANZ down 8c to $33.15.
We continue to see an average to poor performance in IPO’s, most recently 3P Learning (TPN), down 9.2% to $2.27 from its listing price of $2.50. An article on the AFR online today caught our attention and was in-line with our thoughts “investors burnt by IPO glut.” It will be interesting to see the performance of Healthscope’s debut when most retail brokers received under 20% allocation of bid volume.
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