Asx Down On Cyclone Worries

Submitted by: Trader J Howell

ASX Down On Cyclone Worries:

Australian shares are trading a bit soft in Friday s session after Cyclone Narelle is expected to hit the country in few hours. Many oil and gas companies as well as iron ore companies, metals, etc. shut down their plants due to this cyclone. This will have some minor impact on production and thereby, sales and revenues of these companies.

Yesterday, all the major indices in the United States closed on a positive note and many expected that this would drive the Asian markets as well as the Australian markets higher. Some of the Asian markets are trading in the positive territory whereas others are trading flat.

There are some good data numbers which came out of Australia this week. Building numbers and construction data has been good as well as the housing sales numbers. On the other hand, retail sales and job figures are making the investors to be a bit cautious on the Australian economy. Michael Blythe, CBA chief economist, said, On the whole, the data was soft and indicative of an economy that is growing at a modest pace.

Technical Analysis:

The Australian stock markets have been consolidating form the past few days after a superb up move from 4600 levels to around 4750 levels. Most of the analysts said that the index will break out of that 4600 level and the index will try to conquer the 4750 level. The index did just the same and is now consolidating at the 4700 level.

Markets will watch out for the data which comes out of Australia in the next week. But, most of the investors think that the index will start consolidating at these 4700 levels and will trade in a range for the next few days.

Stocks to watch out for:

Seek company is in the news today after this online job advertisement company is all set to increase its stake in a Chinese internet company called Zhaopin. Zhaopin is a similar online jobs company in China and Seek is continuing to expand globally.

That is the reason it is increasing its stake in this employment company. The stocks of this company rose by around 2 percent and were trading at 7.41 dollars per share, last time we checked.

Trans Urban is also in the news after the company reported excellent numbers in this quarter. The Company has reported decent revenue up tick on the back of increase in the traffic in its roadways. The stock is trading down around 1 percent and was last trading at 6.16 dollars per share.

Metals stocks are in the news today after many of the companies have shut down their plants in the fear of a cyclone coming through. Fortescue metals was trading down around 2 percent and this has been the most hit as it has many plants at that side of the country.

BHP Billiton and Rio Tinto were trading down around 1.5 percent each. These iron ore companies will have to face some problems in the near by future.

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