Market Wrap - Week Ending Friday 23rd Nov 07

By Jason Fittler

Again, we watched our market head down following the US. (As the below chart shows) However, our market is still sitting above fair-value, closing on Friday at 6330. (Fair-value is between 6000 and 6300).

We also saw the Chinese index fall over Thursday and Friday. It is now down 18% from its highs in October. I expect to see further weakness in China in the short term.

Base metals had two big falls, which saw BHP and RIO both lose some ground. This could be the start of some weakness in the resources sector, and present a chance for those who are not fully invested to do so.
The big news of course was over the weekend was the election; we have a new government who will be keen to implement their election promises. We do not expect this to have any impact on the market this week.

The green energy tilt is good for AGL due to their low carbon foot-print and slight negative for Origin who have a slightly bigger carbon foot print. You will also see the resources stocks working with the new government on work choice agreements, to make sure that they do not have any labour problems.
Until next week.... Good Investing