Author: james Carter
• The ASX 200 continued its strength, closing 40 points higher at 5322, paring all of Monday’s losses.• The Banking sector started off strong, only to fade by the afternoon, with ANZ up only 0.2% at $31.77 and Commonwealth Bank (CBA) up 0.8% at $81.40.• Some short covering seemed apparent, with Fortescue Metals (FMG) ending 5.5% higher at $2.73 while BHP closed only 0.1% higher at $30.44.• Regis Resources (RRL) had a stellar close, ending up 3.2% at $1.435. We remain bullish gold.• With a weaker GDP reported for the quarter, the thought of a rate cut in 2015 builds in investors’ eyes!
Hold on tight: Volatility surges, BUT markets are following my script
• The ASX 200 clawed back some of yesterday’s losses, ending up 1.4% at 5281.• The recently battered resources sector was well bid today, with Oil Search (OSH) up 5.6% at $7.70, Regis Resources (RRL) up 7.8% at $1.39 and BHP Billiton (BHP) up 3.9% at $30.40.• The Reserve Bank of Australia (RBA) left rates unchanged at 2.5% for December, as expected, with the RBA Governor, Glenn Stevens reiterating the need for a lower $A. As we digest the comments today, the likelihood for a rate cut in 2015 would be seen if further weakness in our domestic economic data is seen.• Crown (CWN) closed 0.8% lower after reports of a decline in November’s gambling revenue by ~20%.• Metcash (MTS) has been hit hard recently, down 27.2% for the week at $1.90 after reporting a disappointing 1H15 profit result.• Japara Heath Care (JHC) slumped by 9.8% to $2.02 after announcing a payroll error, where early estimates of the unpaid amount was ~$5m. JHC has not reached this level since its IPO float earlier in April this year.
On Friday night, oil continued its slide south. Gold and silver joined in and copper also fell over 3%, pulling the $A back to 85 cents. The first and most obvious observation I can make is the $A would be falling significantly harder if we did not have massive QE from the US, Europe and Japan. However, market do eventually go to fair value and I am starting think the $A that may trade towards 60c, not the obvious 80c. Let’s take a snapshot look at the individual markets mentioned above.
The ASX 200 started the first day of the month with carnage, ending on its day’s low of 5207, down 105 points with an intraday range of 109 points.
Oil plunges to a 4-year low overnight, I revisit the sector
The ASX 200 ended 88 points lower today at 5313 with weakness seen throughout the whole market. However, RIO Tinto (RIO), closed up $1.08 at $59.10.
Iron Ore and Oil keep tumbling, do we catch the falling knife?
The ASX 200 ended the day only 5 points higher at 5401, led by the financials, with National Australia Bank (NAB) up 1.5% at $32.93.
Medibank lists and closes below Institution issue price?
Really bullish, there's more to go in the reflation rally
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