In the Media

With all the noise in the past month around the Royal Commission’s final report, reporting season for ASX listed companies has taken a back seat. Resmed was first off the line and it was punished heavily after releasing its report on 24 January. At one stage it was down 23 per cent, which provided an opportunity to get into a great stock at a cheaper price. It has since traded up 11 per cent and looks set to continue to rise. Reporting will continue for another week and as it does more opportunities will arise in the market given that we are seeing a trend whereby announcements cause high volatility, especially to the downside...

Gillham said the banks were some of the efficient profit-making machines in the stock market, and, given this, it would not be long before banks were back on top again delivering good shareholder returns.  As well, of the top ten best gains in the top 50 stocks last week, six came from the financial services sector.  According to data from FE Analytics, the S&P ASX 300 Financials sector did indeed lead the sector indices, returning 5.54 per cent last week.

Wealth Within chief analyst Dale Gillham said the financials sector defied expectations and rose nearly 7 per cent last week after the release of the of the banking royal commission report. "We need to see the dust settle before making a decision to purchase the banks, as it could just be a false rally before they fall away again" he said. He expects the All Ordinaries Index, which closed at 6136 points on Friday to remain bullish this year.

After what was touted to be a day of reckoning for the financial services industry, especially the banking sector with the release of the final report by the Royal Commission, the financial sector defied expectations and rose nearly 7 per cent this week. So is this current move a false rally or does it now mean that the banks are finally in the clear and ready to start moving up again? Interestingly, the banks traded up the day before we really knew what was in the final report..

Right now the All Ords is looking bullish, but will it continue to rise through 2019? Put simply I believe the answer is yes. I expect 2019 to be a great year for Australian shares with the All Ords rising to around 6,200 points in the first half of the year. For the Australian market to challenge the previous all time high set prior to the GFC, we need to see it trade above the highs in 2015 and 2017 at around 6000 points for approximately 2-3 consecutive months...