XJO falls as Medibank takes centre stage

The ASX200 market is sharply lower at lunch, cooling off after yesterday's rally, despite reasonable international leads. US markets edged higher overnight, extending record levels, but there was little new in the way of catalysts. Global sentiment remains mildly positive on the back of last week's stimulus double play out of China and Europe.

By CMC Markets · 25 Nov 2014

By CMC Markets ·
25 Nov 2014

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The ASX200 market is sharply lower at lunch, cooling off after yesterday’s rally, despite reasonable international leads.

US markets edged higher overnight, extending record levels, but there was little new in the way of catalysts. Global sentiment remains mildly positive on the back of last week’s stimulus double play out of China and Europe.

However, the local market is having none of it, with sellers firmly in command. Materials stocks are out of favour again, as are Industrials and Energy stocks. It appears the Chinese rate cut jubilation has come to an abrupt end, and the index continues to be punished for its growth bias.

Despite the local market woes, today is all about Medibank, which commenced trading at 12pm. There has been quite a build-up and excitement amongst the general public. While it’s no Alibaba, the sheer size of the listing, combined with the fact that has been part of Australian landscape for so long, justifies the attention it’s receiving. It opened at $2.22, but since drifted back a fraction to $2.20. So far, a good result for those involved.

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Frequently Asked Questions about this Article…

Why did the ASX200 market fall despite positive global sentiment?

The ASX200 market fell sharply due to a lack of new catalysts and a strong presence of sellers, particularly in materials, industrials, and energy stocks. Despite positive global sentiment from recent stimulus measures in China and Europe, the local market did not follow suit.

What impact did the Chinese rate cut have on the ASX200 market?

Initially, the Chinese rate cut contributed to a positive sentiment, but the excitement was short-lived. The ASX200 market's growth bias led to a downturn as the initial jubilation faded, and sellers took control.

How did Medibank's trading debut affect the market?

Medibank's trading debut was a significant event, drawing considerable public interest. It opened at $2.22 and slightly decreased to $2.20, marking a positive outcome for those involved, despite the overall market downturn.

What was the opening price of Medibank shares, and how did it perform initially?

Medibank shares opened at $2.22 and experienced a slight decrease to $2.20 shortly after. This performance was seen as a good result for investors, given the broader market conditions.

Why is Medibank's listing considered significant?

Medibank's listing is significant due to its large size and its long-standing presence in the Australian market. This has generated considerable excitement and attention from the public and investors alike.

What sectors were most affected by the market downturn?

The materials, industrials, and energy sectors were most affected by the market downturn, as they fell out of favor with investors amidst the broader market sell-off.

How did international markets perform in comparison to the ASX200?

International markets, particularly the US, edged higher and extended record levels, contrasting with the ASX200's decline. This divergence was due to a lack of new catalysts and local market dynamics.

What should investors consider in light of the current market conditions?

Investors should be aware of the local market's growth bias and the sectors currently out of favor. Keeping an eye on global sentiment and potential catalysts could provide insights into future market movements.