Australian Stocks: What Happened Today?

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This story features TELSTRA GROUP LIMITED, and other companies.
For more info SHARE ANALYSIS: TLS
The company is included in ASX20, ASX50, ASX100, ASX200, ASX300 and ALL-ORDS

By Stephen Hogan, Senior Private Client Adviser, Equities/Derivatives

Australian Market

The Australian market (XJO) closed down -78.95 points or -1.56% to 4983.5 today. The market has just had its fourth consecutive losing day, which has been rather similar to yesterday's 2% drop. The market managed to rally back slightly better than yesterday however, with todays low at 4955.6, still under the 5000 level that has been heavy support in the last month. The big sell off this week has been heavily blamed on international investors taking profits out of our market back home while the dollar continues to fall. The Gold sector continued again today to be the only sector to make a profit as banks and the higher yielding shares took a dive. CommBank ((CBA)) closed out the week with a 7% drop and Telstra ((TLS)) finished with a 6.6% drop.

Echo Entertainment group ((EGP)) has tumbled today after James Packer and Crown ((CWN)) sold out it's 10% stake yesterday after market close. The holding was valued at $264 million.

AUD is currently trading at $0.9685, down -$0.0066 against the USD. In currency news HSBC has lowered its year-end estimate for the Australian currency to 90 US cents from a previous forecast of 95 US cents, UBS changed its forecast for the year-end to 95 US cents from 100 US cents. Goldman Sachs forecasts the dollar to slip to 90 US cents by May next year.

Top Performers

Silver Lake Resources Limited ((SLR)) up $0.09 or 13.14% to $0.775

Kingsgate Consolidated Limited ((KCN)) up $0.135 or 9.47% to $1.56

Troy Resources Limited ((TRY)) up $0.09 or 5.31% to $1.785

Regis Resources Limited ((RRL)) up $0.19 or 5.25% to $3.81

Beadell Resources Limited ((BDR)) up $0.03 or 4.92% to $0.64
 
Bottom Performers

Echo Entertainment Group Limited down -$0.405 or -11.77% to $3.035

IINET Limited ((IIN)) down -$0.61 or -10.00% to $5.49

Fleetwood Corporation Limited ((FWD)) down -$0.46 or -9.48% to $4.39

Horizon Oil Limited ((HZN)) down -$0.03 or -6.82% to $0.41

Discovery Metals Limited ((DML)) down -$0.015 or -6.52% to $0.215

Our Comments

Well what looked like a day that might see some of yesterday's losses returned ended up apart just as bad.

I think this is a buying opportunity but looks like we may have a little bit more downside first. Having some cash here will be great to buy back into these banks.

(For a more comprehensive summary of last night’s market action see FNArena’s Overnight Report.)
 

Re-published with permission. Views expressed are not by association FNArena's (see our disclaimer).

Stephen Hogan is an Authorised Representative of Novus Capital. Authorised Representative No.345411 – http://www.stephenhogan.com.au

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