Australian shares recede after morning high tide
A surge in European shares and US markets returning to all-time highs pushed Australian stocks sharply higher this morning. However, the Australia 200 index failed just below the important 5750 level, sparking a slide and increasing the likelihood of further selling this afternoon.
Post budget support for retail stocks in particular and consumer related stocks in general is evident again today. Premier Investments and Harvey Norman are helping push the consumer discretionary sector to the top of today’s table. Materials stocks are also higher following rallies in metals markets overnight. After a belting yesterday, Resmed shares are up 5% this morning, helping to lift the healthcare sector to a 1% gain.
NAB shares trade are trading without their interim dividend this morning, dropping 3% and putting the financials (ex-property) into the red. Three of the big four banks are ex-dividend in the last two weeks, reducing their attractiveness to dividend yield seekers. Selling pressure is concentrated in the top stocks, illustrated by the underperformance of the twenty and fifty leaders’ indices versus broader market measures.
For further comment from Michael McCarthy at CMC Markets please call 02 8221 2135.
Frequently Asked Questions about this Article…
Australian shares receded after reaching a morning high due to the Australia 200 index failing to break through the important 5750 level, which sparked a slide and increased the likelihood of further selling in the afternoon.
A surge in European shares and US markets returning to all-time highs initially pushed Australian stocks sharply higher this morning, contributing to the early gains in the market.
The consumer discretionary sector, led by Premier Investments and Harvey Norman, is performing well today. Additionally, materials stocks are higher following rallies in metals markets overnight, and the healthcare sector is seeing gains thanks to a 5% rise in Resmed shares.
NAB shares are down 3% today because they are trading without their interim dividend, which has contributed to the financials (ex-property) sector being in the red.
Three of the big four banks going ex-dividend in the last two weeks has reduced their attractiveness to dividend yield seekers, contributing to selling pressure and underperformance in the top stocks.
Post-budget support for retail stocks and consumer-related stocks is evident, with companies like Premier Investments and Harvey Norman helping to push the consumer discretionary sector to the top of today's performance table.
The materials sector is experiencing gains today, driven by rallies in metals markets overnight, which has positively impacted the performance of materials stocks.
For further commentary on the Australian stock market, you can contact Michael McCarthy at CMC Markets by calling 02 8221 2135.
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