Thida's golden run goes off the rails

THE week ended with a bang for global and local markets. European big wigs agreed to pump more money into Greece, bringing a new definition to the phrase "slow-motion train wreck". And locally, the "people's banker", Ralph Norris, announced he was stepping down as boss of CBA. Word is all that "customer focus" was giving him migraines.

By InvestSMART · 24 Jul 2011

By InvestSMART ·
24 Jul 2011

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It has also been a big week for our shares race. Analyst Thida Kyaw seemed destined for the top of the podium only to stumble badly.

In a week where the market added 1.5 per cent, she lost money after gold explorer Echo Resources coughed up much of the gains it had made in the first half of the race.

That left an opening for researcher Katrina Christie, who struck hard and fast, hurdling Thida with a triple double-digit forward somersault manoeuvre.

Minerals explorers WPG Resources and Sirius Resources, and Hawkley Oil and Gas all surged by more than 10 per cent, inspiring gasps of appreciation from the stands. Even so, not much cheddar separates the two big cheeses at the front of the race and anything can happen from here.

The other big story is the barnstorming performances from stalwarts Richard "the chart guy" Pritchard and Dartboard, who both now sit in third and fourth spots powered (as per usual) by a grab bag of speculative resource plays.

Reader and presumed Liverpudlian backroom bookie Ricky Stables is sporting some nasty coggies (look it up) after he was let down badly by a bunch of his bigger name stocks.

One bright spot was Zimplats Holdings, which jumped on word that its patented pimple cream had won the approval of nine out of 10 teens surveyed. Just kidding. The company is mining platinum "from the Great Dyke in Zimbabwe". No jokes.

Patrick Commins

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Frequently Asked Questions about this Article…

How did the share market perform in the week covered by the article?

The article says the market climbed about 1.5% for the week, with global moves (including a European bailout push for Greece) and local developments helping drive a strong finish.

Why did analyst Thida Kyaw lose ground in the shares race?

Thida Kyaw lost money because gold explorer Echo Resources gave back much of the gains it had made earlier in the race, offsetting broader market gains and hurting her position.

Which mining and resource stocks surged during the week?

The piece highlights big gains from minerals explorers WPG Resources and Sirius Resources and from Hawkley Oil and Gas — each reportedly surged by more than 10% during the week.

What happened with Echo Resources and why does it matter to investors?

Echo Resources, described as a gold explorer, surrendered much of its earlier gains in the period covered. For investors, that illustrates how quickly speculative mining stocks can reverse and affect portfolio performance.

What was the news about Commonwealth Bank and CEO Ralph Norris?

Ralph Norris, described as the 'people's banker' in the article, announced he was stepping down as boss of the Commonwealth Bank (CBA), a notable local development mentioned alongside market moves.

Why did Zimplats Holdings jump in the article's coverage?

Zimplats Holdings jumped on word relating to its platinum mining operations — the article notes it is mining platinum from the Great Dyke in Zimbabwe (the writer used a joke but confirmed the company is a platinum miner).

Are speculative resource plays still influencing short-term share market gains?

Yes. The article points out that several of the top performers and race leaders were powered by speculative resource and mining plays, underscoring the sector's outsized influence on short-term market moves.

What takeaway does the article offer everyday investors about recent market swings?

The article conveys that the market can be unpredictable — small margins separate the leaders in the 'shares race' and big swings in resource stocks can quickly change outcomes, so momentum and volatility are important to watch.