FN Arena “Neutral” Indicator Above 51%

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Share prices had a good bounce back yesterday, offsetting two days of consecutive declines. We promised everyone to keep a close eye on what we have dubbed the FN Arena "Neutral" indicator (the amount of Neutral recommendations in our universe of stock recommendations by ten leading equity researchers in Australia).

We can report this morning (Wednesday) that the figure has been climbing since reaching 50.73% on Friday and it stands now at 51.05%, above the 51% level again.

Broker research is rather scarce in the lead up to Easter, so don’t expect any big movements for the figure in the short term. Nevertheless, it remains remarkable that the relationship with a weaker share market has remained intact so far (see also our weekly analysis on Monday).

Obviously, this doesn’t mean share prices won’t necessarily open or close weaker today.

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