Author: james Carter
• It was a volatile and choppy day today in the ASX 200 after trading as high as 5699 early in the morning, only to close off its lows to 5625 (-0.2%) – a range of 76 points in a day!• The banking sector remains to lead the ASX 200 in the red zone, ANZ closed 1.3% lower to $31.92 whilst National Australia Bank (NAB) remains in trading halt (last at $35.20) pending its capital raising.• The resources sector outperformed the broader market as expected. BHP Billiton (BHP) closed 1.7% higher to $31.82 and Fortescue Metals (FMG) closed 2.8% higher to $2.57.• WorleyParsons (WOR) gained little of last week’s sell off, ending 1% higher to $9.98, still down 12.8% for the month.
It’s amazing what a few weeks can do to markets, it feels like in a few days we have experienced a local rate cut, a bond unwind (rates up), resource sector recovery and an almost collapse in our banking sector – enough for a year! The most important fact to remember is that this is an opportunity and with it unfolding as anticipated we should be prepared to benefit from this volatility. The wonderful factor of corrections / volatility within markets is that it often pulls the quality companies shares lower.
The ASX 200 became a very dull affair today, slipping slowly down from an 11.30am high of 5,689 to finish the day down 11points 0.2%) to 5,635.
**NAB has just announced a capital raising of $5.5bn **
Another volatile day on the market today saw the ASX 200 Index finish the day down 46 points (0.82 %) to 5,646.
The press are reporting TPG has increased its bid for iiNet, the initial details are not that exciting as TPG understandably tries to win the bidding game against M2 Communications cheaply. Personally I believe MTU is unlikely to lift their bid hence I will be looking to exit the balance of my IIN. Watch for alerts.
The ASX 200 followed on from yesterday’s selloff. The index finished down 134 points (2.30%) to 5692.
The Banks officially correct as we ponder if the RBA will again cut rates
The ASX 200 had a day to test any trader. The index finished down 1 point (0.02%) to 5826 after being up just over 73 points on its high, to being down 25 points on its low.
Last week the banks dominated the local stock market as they corrected aggressively wiping $20bn from the value of the “Big Four” banks. As discussed in the weekend report the falls were touted to be caused by a number of different macro-economic views. This week 3 of the major banks will come back to basics and report their earnings starting with Westpac (WBC) as I type:
Really bullish, there's more to go in the reflation rally
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