Australian Stocks: What Happened Today?

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            [1] => ((ARI))
            [2] => ((LNC))
            [3] => ((TSE))
            [4] => ((CDD))
            [5] => ((RSG))
            [6] => ((SLR))
            [7] => ((MML))
            [8] => ((BDR))
            [9] => ((NST))
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            [7] => MML
            [8] => BDR
            [9] => NST
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List StockArray ( [0] => MFG [1] => ARI [2] => RSG [3] => MML [4] => NST )

By Ashley Jessen

2 August 2013 ASX Market Summary – Invast Financial Services

Positive economic news out of Europe and the US paved the way for brilliant sessions across the globe with a confirmation of keeping rates low in the UK and Europe and local traders jumped on the action early, pushing the S&P/ASX 200 to the highest close since the 22nd of May. The S&P/ASX 200 moved 55.3 points higher or 1.09% to close at 5116.8.

Despite the euphoria across the global bourses, Gold & Silver had a rough session closing down nearly 2% each whilst Crude Oil firmed slightly. All eyes will be on the US Non Farm Payroll data out tonight Sydney time with the consensus signally 184,000 jobs added in July.

The Real Estate Investment Trust and Financial sectors bounced back very strongly from yesterday’s sell off with a robust move to the upside of 1.59% and 1.29% respectively. Only one sector remained in the red with the Utilities sector unable to follow the crowd, falling 0.16%. Consumer Staples stocks managed to post the lowest gain among the other sectors, rising a steady 0.46% on a overall positive day.

Looking over the charts

Finally patient bulls have been rewarded with an exceptionally positive close above recent highs and more importantly, above the 5100 level. Today markets the highest close since the 22nd of May, with the bullish confirmation coming from a close on the high for the day. Often the Friday session is somewhat quiet leading in to a weekend but today all that was forgotten as strong buying kicked off and never dissipated for the rest of the session. Today was one of the few days in the past 3 weeks that we haven’t seen a sell off from an early push higher, further emphasising the strength of the move.

S&P/ASX 200 Gainers and Losers

Magellan Financial Group ((MFG)) certainly earned the right to be at the top of the gainers today, rising 5.52%, which comes off the back of a significantly rising share price since January 2012, with gains touching on 750% since then. Arrium ((ARI)) is sitting right on a breakout level at the $1.05 mark, with today’s price action rising a better than average 5.00%. Given the small ascending triangle formation, the likely move forward will be a break to the upside.

Top 5 gainers:

MAGELLAN FINANCIAL GROUP +5.52%
ARRIUM +5.00%
LINC ENERGY ((LNC)) +4.64%
TRANSFIELD SERVICES ((TSE)) +4.37%
CARDNO ((CDD)) +4.29%

Resolute Mining ((RSG)) was unable to hold on to recent gains, giving back 10.06% and moving quickly back down towards recent lows to keep the current long term down trend firmly in place. Silver Lake Resources ((SLR)) remained firmly in the red too, falling 8.61% and sitting extremely close to critical support levels with a close below the $0.68 mark signalling further selling pressure to come.

Top 5 Losers:

RESOLUTE MINING -10.06%
SILVER LAKE RESOURCES -8.61%
MEDUSA MINING ((MML)) -8.48%
BEADELL RESOURCES ((BDR)) -8.00%
NORTHERN STAR RESOURCES ((NST)) -7.60%

 

 

Reprinted with permission of the publisher. Content included in this article is not by association the view of FNArena (see our disclaimer).