Announcement posted by de2 Communications 01 Oct 2015
“The market is currently bouncing back from oversold levels but that does nothing to take away from the fact that worries, particularly on a global scale, remain”, said Chris Conway, Head of Research at Australian Stock Report.
Conway pointed out that from its high of almost 6000 in April 2015, the ASX had recently traded as low as 4920, after the 5000 level finally gave way.
“Whilst the index has since recovered the 5000 level, we wouldn’t be surprised to see a move into 4700”.
According to Conway, “From a technical point of view, it’s the measured move lower from the recent descending triangle pattern (which is a bearish indicator) that formed on the ASX 200.”
In terms of sentiment, he added, “I can’t see too many people wanting to be buyers just yet whilst the global growth, China, and U.S. rates lift-off themes are still hanging like clouds over the market.”
Regarding ANZ Bank and its departing CEO Mike Smith, Conway said “They (ANZ Bank) have already said that their strategy will remain largely the same, so I don’t think the new CEO will make much difference.”
He added, “The only thing I can see the new appointment (of Shayne Elliott) doing is removing some uncertainty. The fact that they appointed someone internally creates certainty. Had they chosen someone externally, it would have created more questions than answers about the future direction of the bank.”
ANZ shares were up 1.4 per cent today, same with National Australia Bank while Commonwealth Bank shares were up 1.1 per cent.
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