Market Wrap - Week Ending Friday 9th May 2008

By Jason Fittler

The bulls are back in town… Although it might only be for a short time. This week we broke out of our training range to the up side. This is a good indication and we can expect to see the market be a bit more positive in the wake of any bad news.

We have also seen some excellent capital raisings over the past week with the Wesfarmers right issue and now the Suncorp Pref issue (more details below).

However it is not all smiles yet, although I am happy to get back in the water and am looking at a number of stocks which are good value, you will need to take a steady approach. There are a couple of key issues to look at;

1. The budget comes out next week; I am interested to see what might happen here.
2. The US financials have not rallied and are in fact still sitting close to there lows.
3. The credit crunch is still in place, this will restrict growth.
4. Banks have not yet experienced any major write downs, if they do, this could see our market pull back.

Moral of the story, we may still have a few shocks to come but there is good value out there if you have a long term view and are happy to hold for income.  
 
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Until next week.