Market up on solid earnings

Market up on solid earnings

By William Leys (Sales Trader, CMC Markets)
18 February 2013

The Australian market is up in early trading, again driven by a raft of solid local earnings results.

Bluescope Steel is leading the way, up 12.73%. Although it posted a $12 million loss, the result reflects a significant turnaround for the steel manufacturer, given it was $530 million in the red the same time last year. Pacific Brands is another big mover, gaining 6.44%, after posting $38.9 million net profit for the year, and announcing a fully franked dividend of 2.5 cents per share.

The banks are continuing to outperform the market, with the exception of CBA, which has gone ex-dividend. NAB is up 2.44%, Westpac 2.5%, and ANZ 2.02%. These moves provide an indication that investors are maintaining a preference for yield stocks. With the RBA minutes being released tomorrow, investors appear to be anticipating the RBA's comments to reaffirm their path of monetary easing in the coming year, which will further increase the attraction of the yield play.

www.cmcmarkets.com

ENDS

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