Market recovers half yesterday’s loss
**Some slight technical issues this evening thus no charts for the PM report – more detail in the AM report tomorrow morning**
A slight semblance of a recovery today with the market opening higher and going on with it for much of the session – before a few big lines of selling saw the index drop around 25pts from the highs in the last 30 mins of trade. Financials saw most love while Dexus dragged the Real Estate stocks lower, coming back online after a capital raise.
On the broader market today we ha overall range of +/- 54 points, a high of 5723, a low of 5669 and a close of 5706, up 40pts or 0.7%.
The banks in the firing line again, this time from the States following news of a new state-based version of the major bank levy which will reap $370 million over the next four years for the South Australia Government as it ramps up spending on infrastructure in a struggling economy. South Australian Treasurer Tom Koutsantonis said the banks were fair game for the states as well as the federal government.. "Even if every other state follows they'd still be under-taxed," Mr Koutsantonis said of the banks. Not large but not great precedent. Banks make $35bn, so 0.3% NSW/VIC? It is projected to raise $97 million in 2017-18 and will begin on July 1, 2017.
The news seemed to create selling in the banks late in the session and was the catalyst for the index coming off its earlier highs.
Have a great night
The Market Matters Team
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