Share Market Wrap 19th August 2008
Reporting season is always interesting and so far it has not let us down. On Wednesday the Commonwealth Bank announced a $4.7 billion dollar profit, which equates to a massive $90 million dollars per week. Now call me cynical, but over the last 12 months the banks have informed us how hard they have had it with the sub-prime mortgage meltdown, yet in reality it is the average Australian who is doing it tough with high interest rates and bank fees.
While I agree with the notion that companies are in business to make a profit, you have to question at whose expense, particularly when the service you receive from banks is relatively poor. In my opinion, we need more competition in the market rather than a decrease as will occur with the merger of St George and Westpac.
So what can we expect in the share market?
While the All Ordinaries Index moved over a range of 138 points this week, it displayed signs of indecision given that the close on Thursday was only 5 points lower than market opening on Monday. That said the indecision is a positive sign, as it is quite common at markets tops and bottoms and usually leads to a change in the trend.
Technically this week the market has traded up given that the high for the week was 5111 points, which was also the highest price achieved in the past month. This could indicate that the buyers are now coming back into the market, although given the current market indecision, I still recommend investors be patient right now until we get a stronger sign that the market will continue to rise.
Dale Gillham
Chief Analyst
Wealth Within
Dale Gillham, ‘one of the country’s most respected analysts’ (Wealth Creator Magazine, Nov/Dec 2004), sought after key note speaker and author of the best selling book ‘How to Beat the Managed Funds by 20%’, has assisted thousands of traders and investors to become confident and profitable in their direct share investments. Tired of an industry saturated by quick fix gimmicks and expensive short-courses, Dale co-founded Wealth Within to provide ‘ real education and ongoing personalised support’, as well as independent investment advice to traders and investors who have become disillusioned by the market for one reason or another. As testament to this, Wealth Within launched Australia’s first and only nationally accredited Diploma and Advanced Diploma of Share Trading and Investment.
For more information please visit www.wealthwithin.com.au
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