ORD MINNETT - MARKET UPDATE

The Australian stock market had another strong week, with resources stocks bolstered by a surge in commodity prices. Banks also enjoyed a bounce and offshore strength added to the firm tone. The S&P/ASX 200 Index was up 1.6% in Friday afternoon trade, adding to last week’s 4.6% gain, for the strongest two-week period since September 2015. The Australian VIX hit its lowest level in six weeks and the Australian dollar maintained its strength at US$0.78. Oil prices sustained an upward trajectory. Top iron ore miners Vale, Rio Tinto and BHP Billiton, all trimmed production targets – a move that could help sustain the current rebound in iron ore prices. Minutes of the RBA's April decision revealed the board had paid greater attention to global headwinds in justifying its decision and current policy stance.

 

Telstra                                  Hold                                                    Capital idea

NIB                                       Buy                                                      Trending right now

Rio Tinto                              Hold                                                     Shipments to slide

BHP                                      Lighten                                                Shipments to slide

Austal                                  Accumulate                                        In the (Aussie) Navy

 

To discuss further, please contact Kieran Hailes of Ord Minnett on (02) 8216 6337 or khailes@ords.com.au.