Is this the start of a correction?
I doubt it, but I hope it pulls back a little more.
When we look across the sectors I note that materials, energy and consumer staples are all down further than the other sectors.
The only one to stay flat is the telecom sector.
It is no big surprise after the market hit new highs since the GFC over the last couple of weeks that some profit taking would start.
The reporting season is ending this month. Which takes away any queries analysts had. They will now look forward to see what might happen in the next 6-months.
While there are no compelling stories in the market at present there has been plenty of activity on the capital-raising front.
- AGL Energy has a rights issue which closes out this week. It provides solid discount on some new shares.
- The QBE Share Purchase Plan should deliver some instant gains to those who take it up.
- The CBA Perls 7 offer closes this week as well.
There has been plenty of support for these capital raisings. The reason being investors are looking for opportunities to get their money invested.
It is no secret that IPO’s over the past couple of years have been duds, but I expect to see some better performing IPO’s coming up.