Market Wrap 07-03-2016

By Jason Fittler

Finally we are seeing some good economic figures, nothing to get too excited about but at least they are not negative. Commodity prices started to strengthen pushing the material sector higher. This produced a strong rally into the weekend pushing the ASX 200 back up around 5100 points; this was a welcome sight for a long term investor like me. It was a strong move indicating that some level of confidence has come back into the market.

There is still some way to go to get back to 5950 points which is where the market was a year ago.

What are we looking for in the coming week?

The key this week is profit taking, Medibank Private is looking like a company which is fully price currently sitting around $2.80 on the back of an approved increase in premiums. Good for shareholders not so much for policyholders. We have seen BHP and RIO also put on good gains along with Cardno over the past week.

We will continue to watch Iron Ore prices, exchange rates and interest rates. The continue talk of a property bubble and the government still keeping changes to negative gearing “on the table” has taken the shine out of the property market. This could see more investors start looking at investing in listed property.

Last week’s move up, was a strong move and if it can find the momentum this week we could see the market stay higher for longer.