ORD MINNETT - MARKET UPDATE
The Australian stock market had another strong week, with resources stocks bolstered by a surge in commodity prices. Banks also enjoyed a bounce and offshore strength added to the firm tone. The S&P/ASX 200 Index was up 1.6% in Friday afternoon trade, adding to last week’s 4.6% gain, for the strongest two-week period since September 2015. The Australian VIX hit its lowest level in six weeks and the Australian dollar maintained its strength at US$0.78. Oil prices sustained an upward trajectory. Top iron ore miners Vale, Rio Tinto and BHP Billiton, all trimmed production targets – a move that could help sustain the current rebound in iron ore prices. Minutes of the RBA's April decision revealed the board had paid greater attention to global headwinds in justifying its decision and current policy stance.
Key Investment Ideas
Company Recommendation Note
Telstra Hold Capital idea
NIB Buy Trending right now
Rio Tinto Hold Shipments to slide
BHP Lighten Shipments to slide
Austal Accumulate In the (Aussie) Navy
To discuss further, please contact Kieran Hailes of Ord Minnett on (02) 8216 6337 or khailes@ords.com.au.