The Market Wrap 25-July-2012

The market continues to trade in the lower end of our trading zone.

Dogged by bad economic news and renewed concerns over Europe investors are still not confident to push the market higher.

This week we heard a report from Deloitte’s that the mining boon is over. Put in perspective it means that demand is not expected to increase, as such new projects will not come on line.

Inflation figures out this week showed that our current inflation rate is 1.2% which is the lowest this century.

Our high dollar did most of the heavy lifting on this front as the cost of goods being imported such as fruit and vegetables, cars, household appliances and clothes etc while there was a sharp increase in local goods such as electricity, gas, water, fuel, childcare and education.

Although this will leave the door open for the Reserve Bank to cut rates given the low cash rate already I doubt this will do little stimulate the economy.

The market over the past 6 months has seen good growth in Cardno up 44%, 1300SMILES up 43% and Spark Infrastructure up 18%.

There are still plenty of good opportunities in the market, you just need to know what to look for. It is not all doom and gloom.

For more information on any of the above please contact us on 07 4771 4577.