MARKET TALK: S&P/ASX 200 Turns Positive After Early Dip

29th Jun 2010 01:49

0049 GMT [Dow Jones] S&P/ASX 200 up 0.3% at 4398.9, hits 4402.2 after early dip to 4370.5, but it's just drifting, amid a lack of fresh catalysts. Energy, materials, financials and telcos now leading broad-based strength, with BHP (BHP.AU) up 0.5%, Rio Tinto (RIO.AU) up 1.6%, Westpac (WBC.AU) up 0.7%, CBA (CBA.AU) up 0.5%, Telstra (TLS.AU) up 0.6%, Wesfarmers (WES.AU) up 1.1%. On the negative front, Woolworths (WOW.AU) down 0.7%, Newcrest (NCM.AU) down 1.3%. "I think we are just drifting ahead of the economic data this week," says UBS executive director Mark Fitzgerald. "There's been a little bit of buying in the banks and I think the offshore guys, who have been selling this market to take money out, have stopped." He says offshore selling has dried up because the currency has stabilized since the federal leadership spill calmed some nervousness about the mining tax. Other traders say there are some transition flows in the market. S&P/ASX 200 could now buck its 5-day losing streak, although caution is expected to linger ahead of Friday's U.S. jobs data. ([email protected]) Contact us in Singapore. 65 64154 140; [email protected] (END) Dow Jones Newswires June 28, 2010 20:49 ET (00:49 GMT)