Market Wrap - Week Ending Friday 11th April 2008

By Jason Fittler
 
Last week we saw the market start to rally before falling back just below our trading range. On Friday we saw both Tatts Group and Tabcorp Holdings take a big hit both losing around 20% on their share price. Why? The New South Wales wagering license looked to conduct a review of the gaming sector when the exclusivity period ends in 2013. Looks like these stocks are only for the punters.

Our market closed even last Friday but on Monday we followed in the foot steps of the US opening down 2%, mainly on the back of the banking sector broadly down 3%. However, Toll and Virgin Blue come out with a downgrade in earnings guidance, which has seen both of these companies fall some 15%. Our market is currently sitting around 5300.

I expect that we may see some more earning down grades over the coming months which will cause our market to stay around the bottom of the current trading range.  However, even with this in mind I still believe now is a great time to buy and accumulate shares in your portfolio.

When you look at our market with a long term view it does represent good value, it may not be the bottom but it is now that you will build the base to reap the rewards later.
 
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Until next week.