A strong market rebound and better than expected economic growth figures were highlights of last week on the market. Indeed the coalescing of locally robust economic results and positive, yet still fairly lack lustre overseas data, produced the best across the board weekly rise this year!
State Equity Matters- Aug 30, 2010
The avalanche of company reports turned into a landslide last week with the bulk of the almost 2000 companies listed on the ASX filing their June end returns in the last week permitted for such returns.
State Equity Matters- Aug 23, 2010
While the uncertain election result is likely to restrain major market moves this week, with final numbers clearer by Friday, a veritable avalanche of company reports hit the market last week – the second last week of the current reporting season-and almost universally the results either equalled or bettered expectations.
State Equity Matters- Aug 16, 2010
The market delivered its first fall for 6 weeks last week due largely to the re emergence of gloomy sentiment around the world, rather than local factors.
State Equity Matters- Aug 9, 2010
With the reporting season now under way in earnest, another good week was had by the market rising by 1.6% over the 5 trading days- that’s 5 weeks in a row where the market has been in the green.
State Equity Matters- Aug 2, 2010
At last we have some interest rate certainty!
State Equity Matters- Jul 26, 2010
In the first week of the election period, the market put in a reasonable performance rising on three out of five trading days but finishing the week with a Friday (almost 2%) flourish, to put the market slightly into positive territory for the week and 1% up over the last month.
State Equity Matters- Jul 19, 2010
Generally better than expected economic news and a mixed bag of corporate announcements, combined to produce a small rise in the index of 0.6% over the 5 trading days. This builds on the better result the previous week, after 5 weeks of erratic movements. The net outcome is that the main market index is finally back to the level it was in the immediate aftermath of the announcement of the initial mining super profit tax in early May.
State Equity Matters- Jun 21, 2010
The Australian market pushed higher last week, up 1% to 4,550. Gains for the week were driven by large resource stocks as offshore leads improved and investors continued to look for a compromise on a proposed new tax on mining profits.
State Equity Matters- Jun 15, 2010
After a rocky start to the week with major world sharemarket indices falling by around 2%, a marked recovery occurred over the latter stages with most of these markets finishing the week actually up by about 2%.
State Equity Matters- Jun 7, 2010
A genuine “curates egg” well describes the market last week, with a mixture of the good and the not so good.
State Equity Matters- May 31, 2010
Local and global economic uncertainty can sometimes obscure positive developments which in a more sympathetic environment would be warmly welcomed.
State Equity Matters- May 24, 2010
Sovereign risk is a term which has generally not been associated with Australia - but is it now?
State Equity Matters- May 17, 2010
The huge European “bail out” of Greece, the Federal Budget which contains no major winners or losers, and an impressive trading update from the Commonwealth Bank, helped finish with the first weekly rise (2.7%) in the last four weeks, but still 5.6% down so far this year.
State Equity Matters- May 10, 2010
In soccer it’s called an “own goal” and in the vernacular it’s called “shooting yourself in the foot”.
State Equity Matters- May 3, 2010
Market tremors from the Greek debt imbroglio which is assuming almost farcical proportions, concerns about possible tax increases contained in the “Henry Tax Review”, and a higher than expected inflation result restrained the market last week.
State Equity Matters- Apr 27, 2010
Profit taking was the “order of the day” last week despite the general absence of negative corporate news, upbeat commentary by the International Monetary Fund (IMF) and robust earnings results in the US.
State Equity Matters- Apr 19, 2010
The market consolidating at around 5000 points (the best level since before Lehman Brothers collapsed on 15 September 2008), interest rates likely to be on hold for a couple of months, and some exciting corporate developments locally and overseas were just some of the highlights of last week on the market.
State Equity Matters- Apr 12, 2010
Takeovers and rejection of takeovers in coal and gold stocks and huge price rises announced for iron ore provided acute market excitement to the first week of the last quarter of the current financial year.
State Equity Matters- Apr 6, 2010
Action on the resources front stole the limelight on the market last week - from a revised and decidedly beneficial iron ore pricing regime for BHP, to late week takeovers for Lihir Gold, Macarthur Coal and CSR’s sugar business.
State Equity Matters- Mar 29, 2010
In the midst of a disparate array of important corporate news and significant international and economic and market events, our market continued its consolidation pattern of the last month. The ASX200 Index finished on Friday at 4897, up 10% from the February low and a touch (0.5%) higher than where we ended last year - a year when the Index itself showed a remarkable resurgence by almost 31%.
State Equity Matters- Mar 22, 2010
A workmanlike result from David Jones, upbeat economic commentary from the Reserve Bank, US interest rates continuing at historically low levels and the New York Dow Jones Index at an 18 month high, were just some of the factors impacting our market last week.
State Equity Matters- Mar 15, 2010
Upbeat corporate news and benign economic data, has seen the market claw back lost ground, with a rebound of 7% in overall share market prices over the last five weeks.
State Equity Matters - Mar 9, 2010
Hard on the heels of a decidedly better than anticipated half yearly reporting season, was a range of particularly robust key economic data, that provides a solid foundation upon which to build sustainable share market growth this year and next.
State Equity Matters- Mar 1, 2010
The outstanding late week trading update from the ANZ Bank and another robust result from Woolworths, capped off a decidedly better than expected reporting season. Arguably It was one of the most impressive in recent times given the continuing uncertainty in major world markets and economies.
State Equity Matters - Feb 22, 2010
A blockbuster week for company reports; an increasingly likely satisfactory resolution to the Greece debt crisis; better than expected American economic data; and a very pleasantly surprising first quarter trading update from Westpac, propelled the market to a three week high last week.
State Equity Matters- Feb 15, 2010
An easing in European fears about the Greek financial situation; generally better than expected profit results and a surprise sharp fall in the unemployment rate were highlights of last week on the share market.
State Equity Matters- Feb 8, 2010
Interest rates on hold, more positive profit results and profit upgrades than profit downgrades, a Greek malestrom late week, and a market which softened in consequence, sums up last week’s performance on the bourse.
State Equity Matters- Feb 1, 2010
“Where to for our share market this year?.”
State Equity Matters- Dec 10, 2009
As we head into the last full trading week for the calendar year, it would be an understatement to say that this has been an interesting year. From the capitulation of 2008 to the deluge of corporate activity throughout the current year, investors have certainly experienced a rollercoaster ride.
State Equity Matters- Dec 7, 2009
An ultra quick recovery from the Dubai financial ructions last Friday week; upbeat commentary by Australia’s leading retailers Harvey Norman, David Jones and Metcash; and an iconoclastic Reserve Bank again defying tradition and convention, were highlights of last week on the market.
State Equity Matters- Nov 30, 2009
Further healthy consolidation in the market, upbeat comments by BHP and major retailers Harvey Norman and Woolworths, together with mixed economic data, were major highlights of last week on the market.
State Equity Matters- Nov 23, 2009
Increasing stability and consolidation in the market – no change likely in interest rates, generally positive news from overseas and underwhelming announcements from local companies were highlights of last week on the market.
State Equity Matters - Nov 16, 2009
The G20 Finance Ministers’ recent commitment to maintain the global economic stimulus measures rekindled the fire under the share market’s performance last week, after a fairly comatose October.
State Equity Matters- Nov 9, 2009
“A return to something approaching normality” might be an apt description of the market’s recent performance.
State Equity Matters- Oct 26, 2009
A smaller interest rate rise of 0.25%, rather than 0.5% is now more likely on Melbourne Cup Day; a strong production report from BHP; solid first quarter sales figures from Coles and Woolworths although Coles significantly beat market expectations; and a successful capital raising by up and coming iron ore developer/explorer Pluton Resources, were among highlights of last week on the market.
State Equity Matters - Oct 19, 2009
A strong opening to the US third quarter reporting season, overlaid on favourable announcements at AGM’s fuelled the continuing rally on the Australian sharemarket last week.
State Equity Matters- Oct 12, 2009
It’s official. The economy is now out of intensive care and the “economic life support apparatus” or very low interest rates which have characterised the last 12 months can be gradually removed.
State Equity Matters- Oct 5, 2009
Interest rates war drums are now beating louder. The prospect of an interest rate rise, probably in November, looks more and more likely.
Reading between the lines of the statement by the Governor of the Reserve Bank Glenn Stevens to the Senate Economic References Committee last week it would not surprise to see an interest rate rise of a quarter and possibly a half a percent on Melbourne Cup day- with the overriding goal of achieving a “neutral” rate (ie about 4-4.5%) by this time next year.
State Equity Matters - Sep 28, 2009
Rip Van Winkle lives?
If Rip had woken up on Friday after having been asleep for the last 12 months, he may well have thought that nothing much has changed and that all was well with the world and the market. For example the ASX 200 Index last week hit a high of 4735.6, uncannily similar with the levels it obtained (or fallen to) in the last week of September last year.
State Equity Matters- Sep 21, 2009
Bernanke and Buffett comments and international optimism, set markets alight last week – although the government’s ultimatum to Telstra put a temporary dampener on its share price mid week.
State Equity Matters- Sep 14, 2009
Unemployment on hold; retail sales and housing finance hesitate; ABB taken over by Canadian Viterra, Paladin’s huge capital raising, Metcash loses liquor distribution in Queensland and impressive debut by Carsales.com, were just some of the highlights of last week on the market.
State Equity Matters - Sep 7, 2009
“No recession, let alone a technical recession, and interest rates on hold” were the dominating features determining the direction of Australian sharemarket prices last week.
State Equity Matters - Aug 31, 2009
“Much much better than expected” is an apt way to describe the reporting season just completed. To underline the point the ASX 200 index is up 3.7% over the effective 3 week period that most companies have reported - Given what we’ve been through over the last year that’s an impressive reporting season epilogue to what can only be described as a tumultuous financial year.
State Equity Matters- Aug 24, 2009
A healthy breather from the hectic pace of the last month is one way to describe last week on the market.
State Equity Matters- Aug 17, 2009
What a week it was!
State Equity Matters- Aug 10, 2009
The relentless momentum of the market continued last week with the ASX 200 index up by 1.3% to bring the rise so far this financial year alone to almost 9% and an incredible 36% since the low point on the 6th March this year.
State Equity Matters- Aug 3, 2009
“We are now starting to see some sunlight through the trees, but we are not out of the woods yet”, could well be a metaphor for the recent speech by the Reserve Bank Governor Glenn Stevens to the Australian Business Economists luncheon last Tuesday.
State Equity Matters- Jul 27, 2009
Interest rates in the US are likely to remain low for an “extended period” while the interest rates outlook in Australia is somewhat more equivocal. These conclusions are based on the minutes of the July meeting of our Reserve Bank Board and testimony given by US Federal Reserve Board Chairman Bernanke to the US Congress last week.
State Equity Matters- Jul 20, 2009
A 59% increase in revenue reported by Goldman Sachs in the US for the second quarter of this year, and a better than expected result from Intel, provided the fuel for very strong performances by sharemarkets, right around the world - Our market was no exception and we saw a rise last week by 5.5% - similar to most other major markets, but New York outdid the lot increasing by 7.3% on the Dow Jones Index.
State Equity Matters- Jul 13, 2009
An interest rate cut of 0.25% later this year became much more likely during last week.
The cut will become almost a certainly should the unemployment rate continue to increase towards 6.5% of the labour force over the next few months.
State Equity Matters- Jul 6, 2009
A truly remarkable year is perhaps the most appropriate way to describe last financial year on the market.
State Equity Matters- Jun 29, 2009
Investors beware!
If ever there was a time when investors should be particularly wary of economic forecasts by international economic agencies, then last week was it.
First we had the World Bank expecting that the global economy will shrink further this year by 2.9% compared with a previous forecast of 1.7%.
State Equity Matters- Jun 22, 2009
The unprecedented amount of capital being raised by ASX listed companies continued unabated last week with over $2 billion raised by Asciano, coincident with the mammoth US $15 billion Rio Rights Issue documentation being issued to shareholders.
State Equity Matters- Jun 15, 2009
The flow of Australian data last week was very strong, with big rises in business and consumer confidence, a sharp rise in housing lending to investors and a much more resilient employment performance. The Australian market performed well, breaking the 4,000 point mark for the first time since November last year, leaving it up 2.2% for the week. The index is 30% above its March low. Financials took over from materials, yet investors continued to show strong interest in coal and iron ore stocks, while also buying engineering services companies leveraged to the recent surge in commodity prices.
State Equity Matters- Jun 9, 2009
Last week saw the release of March quarter Gross Domestic Product (GDP) figures, with the market surprised to see positive growth of 0.4% announced. Consumer spending increasing by 0.6% as stimulus payments saved during the December quarter fed through into the economy. Following the 0.6% contraction seen in the December quarter, Australia has avoided recession, at least in terms of the technical definition (two consecutive quarters of contraction).
State Equity Matters- Jun 1, 2009
The capital raising spree continued last week with the ANZ announcing a massive capital raising of almost $3 billion, followed by Ausenco and Primary Healthcare announcing smaller raisings.
State Equity Matters- May 25, 2009
Raining raisings” may be an apt way to describe last week on the market.
New money raised by Billabong, Nufarm and GrainCorp (which totalled $650 million) came on top of those over the last couple of weeks from Macquarie Bank, Bluescope Steel, OneSteel, Santos, General Property Trust, Alumina and Adelaide Brighton Cement.
State Equity Matters- May 18, 2009
The market greeted the Federal Budget with a proverbial yawn mid week, but weaker retail sales data from the US, and rumours about a possible rights issue by Rio Tinto, took some of the effervescence off the markets ebullience over the last two months. The net result saw the market fall by a relatively large 4.3% over the week, which “evens the ledger” after the surge up the week before of 4.5%.
State Equity Matters- May 11, 2009
Less stress about the results of the US Bank stress tests, a quadrella of more buoyant than expected economic news, workmanlike results from Westpac and Orica and a “changing of the guard” at Telstra were highlights of last week on the market.
State Equity Matters- May 4, 2009
Despite the odds, our market put in a strong performance last week, as did most major world markets.
State Equity Matters- Apr 27, 2009
Benign inflation figures and an impressive update from Wesfarmers that helped partially offset the gloomy yet now boringly predictable forecasts by the International Monetary Fund, were highlights of last week on the market.
