Greek "No Deal", good enough trigger to sell
Local shares switched into sell mode from Thursday’s market open and continued in much the same fashion for the remainder of the session. Greece’s “no deal” status seemed like a good enough excuse for local investors to pull the trigger ahead of financial year end.
Aussie stocks have endured a turbulent news week, with stocks burnt at the stake on profit downgrades, rumours and speculation. These have presented numerous trading opportunities for local traders. After two sessions of attrition, Flight Centre has seen over 25% whipped off its market cap. Thursday trade unveiled another downward spiral for Flight Centre, one of the most shorted stocks on the ASX200, tumbling another 1.5%
This week’s other headline-grabber is Slater and Gordon being placed on trading halt as it continues to unravel through an accounting probe. The stock plummeted over 20% once it resumed trading following knee jerk reaction to the suspension of Quindell shares in the UK.
Thursday selling was concentrated on consumer staples and financial stocks, while the remainder of the market oscillated in flat-black. The major miners BHP and RIO both served as rare greens after iron ore firmed up overnight, finding support at the $60/tonne mark.
Big Banks continue their descent, as the financials collectively shed 0.5% across the trading day. Lunch time ushered in buying support as two of the four banks (CBA and NAB) saw downward pressure ease.
In afternoon trade, volumes remain light, a sign that investors may be wrestling with any real commitment ahead of a Greek resolution. The local currency sits steady at early mid 0.77 levels. Unemployment claims due out from the US could continue to see these levels supported.
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Frequently Asked Questions about this Article…
Local shares switched into sell mode due to Greece's 'no deal' status, which prompted investors to sell ahead of the financial year end. This uncertainty provided a good enough reason for many to pull the trigger on their investments.
Aussie stocks experienced a turbulent week due to profit downgrades, rumors, and speculation. This volatility created numerous trading opportunities, but also led to significant losses for some companies, such as Flight Centre, which saw a 25% drop in market cap.
Flight Centre's stock has been heavily impacted, with over 25% of its market cap wiped out after two sessions of attrition. It is one of the most shorted stocks on the ASX200 and continued to tumble by another 1.5% in recent trading.
Slater and Gordon was placed on a trading halt due to an ongoing accounting probe. The stock plummeted over 20% once trading resumed, following a knee-jerk reaction to the suspension of Quindell shares in the UK.
The recent selling was concentrated on consumer staples and financial stocks. However, major miners like BHP and RIO were exceptions, as they found support due to firming iron ore prices.
The major banks continued their descent, with the financial sector collectively shedding 0.5% during the trading day. However, there was some buying support during lunchtime, which eased the downward pressure on CBA and NAB.
The local currency remains steady at the early mid 0.77 levels. This stability is partly due to upcoming unemployment claims from the US, which could continue to support these levels.
Investors should be cautious and consider the ongoing uncertainty surrounding Greece's financial situation. Light trading volumes suggest that many investors are hesitant to make real commitments until there is more clarity on a Greek resolution.
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