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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