##{"id":60993,"date":"2012-11-30T16:26:20","date_gmt":"2012-11-30T05:26:20","guid":{"rendered":"http:\/\/www.fnarena.com\/index.php\/2012\/11\/30\/australian-stocks-what-happened-today-5\/"},"modified":"2012-11-30T16:26:20","modified_gmt":"2012-11-30T05:26:20","slug":"australian-stocks-what-happened-today-5","status":"publish","type":"post","link":"https:\/\/staging.fnarena.com\/index.php\/2012\/11\/30\/australian-stocks-what-happened-today-5\/","title":{"rendered":"Australian Stocks: What Happened Today?"},"content":{"rendered":"

\n\tBy Max Ludowici<\/span>, Equities & Derivatives Advisor, 708 Capital<\/p>\n

\n\tThe market punched through the key psychological 4500 level in a strong day across the board. Volumes were solid, particularly for a Friday with over $7B<\/span> being traded, though a chunk of this will be due to yesterday’s equity options expiry.<\/p>\n

\n\tDespite a large sell dumped into the market in the match pushing the market down 5 points and an additional $1B<\/span> of stock going through in the closing period, the market held good gains closing up 28 points or 0.6% to 4506 and added to gains from last week. The Australian market has risen 4% in the last two weeks despite the volatility and inconsistent volume. <\/p>\n

\n\tThere is a lot resistance at the 4500 level and this may prove a hurdle we can’t mount if developments surrounding Cliff negotiations do not improve. Most market observers are now of the view that Boehner and Obama will conceptually agree on what form the budgetary changes will take before Christmas and finalise<\/span> the details in the new year.<\/p>\n

\n\tEven news of a handshake agreement will be enough to put the issue behind us so we can focus on the strengthening economic data in the US. This is the real news and investors will get a big wakeup call when the nail biting over the cliff saga is behind us. Past experience tells us, markets tend to overreact to the resolution of such drawn out issues. A big Christmas rally is therefore not implausible and investors should consider appropriately exposing themselves to the cyclicals<\/span> which will be the biggest beneficiary of a relief rally. The US market is looking a little toppy<\/span> here in the short term though so we may see one more sell off before traders will be happy to move the market higher.<\/p>\n

\n\tRio Tinto ((RIO)) closed up 2.75% as the company announced a number capital expenditure cuts.<\/p>\n

\n\tMetcash<\/span> ((MTS<\/span>)) fell 2.3% after reporting a 13% fall in FH<\/span> profit as a result of heavy discounting of food and groceries.<\/p>\n

\n\tThe banks put in a particularly solid performance with the ANZ<\/span> Bank ((ANZ<\/span>)) closing up 1.1%, National Bank ((NAB)) up 1.46%, and Westpac ((WBC)) up 1.1% being the star performers.<\/p>\n

\n\tMacquarie Bank ((MQG<\/span>)) jumped 2.7% to an 18 month high on what looks like a bullish technical breakout.<\/p>\n

\n\tDefensives lagged throughout the day with Telstra ((TLS)), Wesfarmers<\/span> ((WES)) and CSL<\/span> ((CSL<\/span>)) all closed flat between 0.1%-0.5%
\n\t <\/p>\n

\n\tDOW futures are showing a negative read down 19 points.<\/p>\n

\n\tHappy Friday!<\/p>\n

\n\t(For a more comprehensive summary of last night’s market action see FNArena’s<\/span><\/a> Overnight Report.)
\n\t <\/p>\n

\n\tThis article produced at the request of and is published by FNArena<\/span> with the expressed permission of 708 Capital.<\/em><\/em><\/p>\n

\n\t708 Capital is a full service stockbroking<\/span> 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<\/span> listed companies. 708 has a longstanding track record of generating exceptional returns for its clients. Click here 708capital.com.au\/contact-us\/<\/a> <\/a>for a no costconsultation<\/span> and portfolioreview<\/span> or to learn more visit www.708capital.com.au<\/a>. Note: 708 Capital offers wealth management services for Sophisticated and Wholesale Investors only. We can only assist investors who are classified as Sophisticated Investors or have verified assets over AUD$2.5m.<\/em><\/em><\/p>\n

\n\t708capital<\/span> is a holder of AFSL<\/span>. No. 386279<\/em><\/p>\n

\n\t $\"\"$ <\/em><\/p>\n

\n\tIMPORTANT DISCLAIMER – THIS MAY AFFECT YOUR LEGAL RIGHTS:<\/em><\/p>\n

\n\tThis 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.<\/em><\/p>\n

\n\tDisclosure of Interests: 708capital<\/span> receives commission from dealing in securities and its authorised<\/span> representatives, or introducers of business, may directly share in this commission. 708capital<\/span> and its associates may hold shares in the companies recommended.<\/em><\/p>\n

\n\tFind out why FNArena<\/span> subscribers like the service so much: "Your Feedback (Thank You)<\/a>" – Warning this story contains unashamedly positive feedback on the service provided.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"