Market Wrap - Week Ending Friday 25th April 2008

By Jason Fittler
Another week and we remain in the trading range; the big difference this week is that the market remained bullish even on the back of bad news. This week we had a couple of major companies reporting.

First was ANZ who came out with a disappointing result with margins down, profit down and bad debts up. ANZ did well to flag the poor result to the market as such we saw the stock rally. This was an important indication of a change in the view of the market. In the last reporting period any company which reported poor results no matter how well they flagged the news was still sold down.

Second BHP reported its quarterly production with an output below expectations in Coal and Copper but a record output in Iron ore saw the price of the stock jump to $45.00. Again indicating that the market is starting to adjust to the new environment which we will now trade in.

The ASX 200 started the week at 5460 and finished on 5587 putting on 2% for the week; it also hit a 5653 high. Again I expect the market to stay in this trading range for the next couple of months until full year results come out before moving higher. Over the coming months we will be looking for good opportunities to start getting some money back into the market.
Until next week.