ASIC lifts ban on short selling Financials
May 25th, 2009 by Cale McCulloch
Closing Data
| current | change | % | |
|---|---|---|---|
| Dow Jones | 8277.32 | -14.81 | -0.2% |
| NASDAQ | 1692.01 | -3.24 | -0.2% |
| S P 500 | 887 | -1.33 | -0.1% |
| FTSE 100 | 4365.29 | 19.82 | 0.5% |
| Nikkei 225 | 9225.81 | -38.34 | -0.4% |
| SPI Futures | 3781 | 6 | 0.2% |
| All Ords | 3,755.00 | -49.3 | -1.3% |
| Oil | 61.15 | 0.66 | 1.1% |
| Gold | 958.9 | 7.7 | 0.8% |
| Silver | 14.695 | 0.25 | 1.7% |
| Aluminium | 1407 | -23 | -1.6% |
| Copper | 4586 | 82 | 1.8% |
| Lead | 1422.5 | 2.5 | 0.2% |
| Nickel | 12525 | 225 | 1.8% |
| Tin | 13975 | 270 | 2.0% |
| Zinc | 1467.5 | 24.5 | 1.7% |
U.S. markets closed slightly lower on Friday night, but still managed to end the week higher. The market was supported by better than expected results from some of the key retailers including Sears, who reported better than expected earnings, while GAP also posted results that were slightly better than expected. Investors took this as a sign that the teenagers and people in their early twenties were still spending.
Base metals were broadly higher, with the exception of Aluminium as the stock piles in the metal continued to climb in London. Overall strength in the sector should support the resource stocks on the local market. Oil also climbed back above the USD 61 per barrel as Libya came out and said that there was a 50% chance of further cuts in production by OPEC when they next meet in Vienna.
Gold continued it’s northward climb on safe haven buying, putting on an additional USD 7.70 per ounce to end the week just under USD 960 an ounce. The continued strength in the precious metal should carry through to the Gold miners this morning.
ASIC have also lifted the short selling ban on Financials as of market open this morning. Exactly what this will do to the sector is a point of anxiousness, but it had to be done for the purpose of price discovery and realigning with markets around the globe. So keep an eye on the sector over the coming sessions.
Other than that on the Australian market, keep an eye on RIO this week, as the London based minor prepares for shareholder meetings in Australia this week with regards to amendments to the Chinalco bid, and any potential capital raising as an alternative.
Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.
Disclaimer
The material in “Market Fox” (newsletter) is of a general nature only and neither purports nor is intended to be regarded as advice. No consideration has been given or will be given to your investment objectives, financial situation or needs. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk. Not all risks can be or will be explained in the newsletter. Previous results are no indication of future results. Actual results achieved in the market can vary considerably. The Directors and Representatives of Freeman Fox Ltd and their associates may hold securities in the companies presented.
The research made available in this newsletter is for your private use only and it is protected by applicable copyright laws and other applicable intellectual property right laws. You may not reproduce, distribute, disseminate, broadcast, sell, publish, circulate or give for free, any of the materials made available to you in this newsletter without first seeking the prior written consent of Freeman Fox Ltd.
Freeman Fox Ltd is not required to update any of the content made available in this newsletter, including but not limited to any research commentary, forecasts, recommendations or other analysis in this newsletter. Therefore, for the avoidance of any doubt, material made available in this newsletter may not be accurate after the date of publication or the date on which it is displayed in the newsletter.
To the extent permitted by law, Freeman Fox Ltd and their respective directors, officers, employees, contractors and agents disclaim all responsibility to you for any loss, liability, claim, expense (including but not limited to legal costs and resultant defence or settlement costs) or damage whatsoever, whether direct, consequential, special, incidental, punitive or indirect (including but not limited to loss of profits, trading losses and damages that result from delay, loss or inconvenience) arising out of or in connection with the content of the newsletter and/or any omissions from the content whether in contract, tort (including negligence), statute or otherwise and even if Freeman Fox Ltd has been advised of the possibility of such damage or loss.
If you require assistance in relation to your personal investment situation, contact an authorised representative of Freeman Fox Ltd.