The past week started by continuing the strong gains of Friday the previous week to set a new high at 4281.
The week finished on a down note however, reversing most of the gains earlier in the week. It was lead lower by the resource sector; BHP announcing losses from US shale (writing off US$2.84 billion), and Australian nickel assets (US$450 million). Amazingly and to their credit, both Marius Kloppers and Mike Yeager have advised the Remuneration Committee that they do not wish to be considered for a bonus for the 2012 financial year.
Euro zone anxieties over sovereign debt, particularly in Greece, Italy and Spain persist, and seem not to want to go away. This plus the start of the Australian company reporting season next week could cloud prospects for the market. It is pleasing however that Friday’s low was 4212, just above support at 4211. By close it had lifted above this low to 4221.5.
The present uptrend is intact and will remain so providing any further falls next week fall short of the last low at 4120. There is an excellent chance that the present uptrend from lows will continue, making this an opportune time to buy into undervalued quality stocks paying exceptionally high dividends.
Categories: Trading opinion