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.

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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