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Showing posts from February, 2008

Australian Stocks Drop

Australian Stocks DropAustralia's S&P/ASX 200 index snapped a three-day rise, led by financial stocks after Suncorp Metway Ltd. reported a slide in profit and Goldman Sachs JBWere Ltd. slashed its share-price forecast for the nation's financial shares. Suncorp, Australia's second-largest car and home insurer, reported a 28 percent drop in first-half earnings after credit costs crimped returns and it had to pay higher payouts after storms in northern Queensland. Analysts at Goldman Sachs including James Freeman lowered their forecast for Australian banks by as much as 26 percent, citing increasing concerns over their earnings. Suncorp is ``swimming in the same ocean as a sector that hasn't seen a lot of positive news,'' said Hans Kunnen, who helps manage the equivalent of $128 billion at Colonial First State Global Asset Management in Sydney. ``Higher interest rates and slower growth in bank profits are really crunching the finance stocks.'' ABC cris…

Australian Superfunds And withdrawing your super (superannuation)

Todays Australian stock UpdateTHE Australian share market closed firmly in the black following a strong lead from Europe, with Wall Street closed overnight for a public holiday.The benchmark S&P/ASX200 index was up 60.7 points, or 1.09 per cent, to 5619.1 while the broader All Ordinaries index had risen 54.6 points, or 0.97 per cent, to 5688.6.
On the Sydney Futures Exchange at 4.18pm AEDT, the March share price index contract was 35 points higher at 5613 on a volume of 20,800 contracts.
CommSec market analyst Juliette Saly said the solid market performance had been driven by a recovery in the banking sector and the top two miners.
"Banks and miners were what helped the European markets,'' Ms Saly said.
"Rio Tinto and BHP Billiton are benefiting from news of higher commodity prices but other stocks that performed well yesterday have fallen a bit, including Fortescue Metals Group (FMG), which had a big run up when it was announced that iron ore pr…


Why are stock markets volatile?
There has been unprecedented volatility in the domestic markets last month. In India, all major market indices lost over 20 percent from their highs (mid-cap and small-cap stocks were the worst hit in this correction). Intraday volatility was also quite high in the markets. There were many days when the Sensex recorded more than 1,000 points (above five percent) intraday swings. The main reason for the correction seen in markets last month is negative news inflows from the US and world economy front.
The rise and fall of share prices (market direction) depends on various market forces. In fact, the factors that affect stock markets have increased significantly over the last one decade due to globalisation and technological advancements. Volatility is an important consideration while computing risk, and hence, the returns expectations from investments in the market.
These are some market forces that directly or indirectly drive the stock market…