The market staged a classic Friday rally having fallen from 5120 this week it was about time we saw some book squaring. The big question is what happens over the weekend in Cyprus. Now we all know that Cyprus is so tiny it is not funny, but the problem is that any exit from the Euro tragedy will embolden others to feel the same. There is no mechanism for a country to exit, so this may be a first. I suspect at the eleventh hour there is a deal to be done that will save the World. Anyway our market rallied and as usual banks were in focus with Commonwealth Bank of Australia (A$68.63, unch) fluctuating and Westpac Banking (A$30.50, +1.4%) the best of them. Probably the cleanest Aussie Bank is WBC, so that has rallied the most today .Wesfarmers (A$40.63, +0.8%) and Woolworths (A$34.03, +0.9%) also joined in and even Newcrest Mining (A$22.30, +1.5%) rallied.
The big winners today were financials with Australia and New Zealand Banking Group (A$28.55, +1.5%), National Australia Bank (A$30.63, +0.9%) and Commonwealth Bank of Australia (A$68.63, unch) pushing a head whilst the big loser was Leighton (A$20.20, -6.9%) after more board room issues with eruptions with their German parent.
Gold shares were better after a rise in the shiny metal stuff with Medusa Mining (A$4.45, +3.7%), Silver Lake Resources (A$2.20, +3.3%) and Kingsgate Consolidated (A$4.14, +3.2%) all in the winners enclosure.
Media stocks were a tad easier as Seven West Media (A$2.20, -3.1%), Ten Network (A$0.34, -1.4%) and Fairfax Media (A$0.635, -1.6%) eased.
Volume was disappointing and showed that most serious players were hugging the sidelines.
Stocks in the News.
Billabong International (A$0.75, +7.9%) had a good day today as the company suggested that there are still two players in the bidding war. Only trouble is what price they are prepared to pay!
Ridley (A$0.93, -17.7%) suffered big time today as they updated the market on their capital management issues and the current outlook.
Beadell Resources (A$0.91, +8.3%) had a great day today after a Bloomberg write up on takeover potential. One to watch!
Tomorrow news Today
Let’s face it Cyprus is the focus this weekend..’Zombieland” is back in focus and with a Monday deadline on a plan C it is imperative that they come up with something other than taxing Kebabs at 50%.
It’s been a long week.. we have has ‘Creangate’ , Iron ore downgrades, Cyprus and RBA minutes. It’s been bloody, nasty and uncomfortable but that the market for you. I have been calling for a pullback to 49560 for weeks..well, we have had it and then it bounced..Suspect the bounce will continue if news out of Europe is half decent. At the end of the day, the economy has defied the politician efforts to destroy it, and continues to power along..that is the big issue not the Canberra sideshow that I like to call Circus OZ..so many clowns!
And of course the biggest news of the week is Miranda Kerr splitting from David Jones. David Jones (A$3.02, -1.6%) suffered. I know I have!
Have a great weekend and remember that he Cypriot Bank Governor is called Panikcos!
Russian takeover coming!