Australian Stocks: What Happened Today?

This story features WESTPAC BANKING CORPORATION. For more info SHARE ANALYSIS: WBC

By Max Ludowici, Equities & Derivatives Advisor, 708 Capital

After the XJO’s sizeable short squeeze last week and positive move on Friday night, the market barely rolled out of bed today. The market spent the majority of the day in an 8 point range to close up 11 points or 0.25% to 4424 on meagre volume of $2.7B shares. To put that into perspective, the average volume throughout the month of November last year was $4.4B.

The market again focused on issues overseas as we had few local leads to direct our market in today’s trade. The resumption of a meeting between Eurozone finance ministers later this evening regarding the form of Greece’s bailout package will be the third attempt at resolving the issue. This is the imminent focus for markets in addition to the lingering fiscal cliff issue where little tangible headway is being made. A resolution on the Greek issue at least will provide some certainty for markets and should keep things bubbling along. Investors are mostly of the view that the US will do what is best (most popular) for it and manipulate the current fiscal stance to avoid tumbling off the cliff.

Market action was dominated by the cyclicals with the likes of BHP Billiton ((BHP)) up 0.7%, Fortescue Metals Group ((FMG)) up 3.3% and Bluescope Steel ((BSL)) up 2%. Other notable moves included Fairfax Media Limited ((FXJ)) up 4.65% and Qantas Airways ((QAN)) up 2.75%. Financials were mixed with Commonwealth Bank ((CBA)) up 0.3% and Westpac ((WBC)) down 0.7%.

Whilst barely a blip on the globe’s radar, the NZX50 (New Zealand’s Equities Index) hit a 5 year high today.

The markets newest small cap darling Sirius ((SIR)) got hammered 22% today on a disappointing exploration update. Sirius has had a monumental rise from 5c to over $3 in just 3 months on a significant Nickel Sulphide discovery and was a big talking point for the day.

DOW futures are pointing to a weaker opening for Wall street down 37 points
 

This article produced at the request of and is published by FNArena with the expressed permission of 708 Capital.

708 Capital is a full service stockbroking and investment advisory firm. 708 offers investment and market advice to high-net-worth Private and Institutional clients in Australia and across the globe. 708's extensive network of contacts gives its clients exclusive access to ground-level fundraising opportunities and new company listings in a variety of small and large cap ASX listed companies. 708 has a longstanding track record of generating exceptional returns for its clients. Click here 708capital.com.au/contact-us/ for a no cost consultation and portfolio review or to learn more visit www.708capital.com.au. Note: 708 Capital offers wealth management services for Sophisticated and Wholesale Investors only. We cannot assist investors who aren’t classified as Sophisticated Investors or have verified assets over AUD$2.5m.

708capital is a holder of AFSL. No. 386279

IMPORTANT DISCLAIMER – THIS MAY AFFECT YOUR LEGAL RIGHTS:

This document is intended to provide general securities advice only, and has been prepared without taking account of your objectives, financial situation or needs and therefore before acting on advice contained in this document you should consider its appropriateness having regard to your objectives, financial situation and needs. We recommend you obtain financial, legal and taxation advice before making any financial investment decision.

Disclosure of Interests: 708capital receives commission from dealing in securities and its authorised representatives, or introducers of business, may directly share in this commission. 708capital and its associates may hold shares in the companies recommended.

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