Morning Report Wednesday 9 September 2015
The market has been looking for signs of confidence and they arrived yesterday in Asia Pacific time then carried through to European and US markets. Australian equities rallied strongly yesterday (almost 1.7%) aided by strong US Futures and a solid China market but it was the Energy Sector rallying over 4% that really caught the eye.
It is now looking increasingly likely that the 25th August low in the ASX200 will hold. We have also been advocating that for those who like the resource stocks that investment in the sector is warranted for the first time in over 3 years with Oil Search one of the chosen few recommendations!
Woodside (WPL) made an AUD11.6bn all scrip bid for Oil Search (OSH) at a 13% premium to the previous day’s price. The usual followed - OSH surged 17.4%, WPL fell 3% and related stocks like Santos jumped 5.2% - see charts 1, 2 & 3.
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