Aussie 200 edge higher

The market has drifted higher today, slowly grinding away without a lot of resistance.

Most of the big banks are trading higher, up around 1-2%. CBA is the sole loser of the big four.

It has been another interesting day in the resources space. BHP has raised €2.25 billion in fresh bond issue, adding to the US$3.25 billion last week. BHP says will be used to pay for general business purposes (most likely to pay off short-term debt), but some expect the big miner will use the cash to fund acquisitions.

Market-sensitive stocks ASX and CPU are enjoying good days today, a sign of the market’s current confidence.

For the past 2 weeks stock across the whole have been rising to the new level for 2009? Is this a bear market rally or this is the beginning bull market? Will the market keep going up to the next resistance level of 3700?

Aussie Dollar on the Rise

It has been a awesome week for the AUD, with the Fed's planning to inject US$1 trillion into the financial system seeing the US dollar fall sharply against its rivals. With this announcement, the AUD gained ground. It is also backed by the rise of the commodity prices.

This is the highest level that the AUD reached since 12th January.

AUD will set to rise higher? From the time being it looks bullish. There will be resistant at 0.7101 or higher at 0.7293.

This is just an opinion for general information only.

Australian pre-open market depth

Why are there considerably larger parcels under the bid/ask in today's Australian pre-open market depth? What is the significance of today (March 19th) for buying and selling such large quantities into pre-open in so many major equities? Obviously Institutions, but why are they all re-balancing their books today?

The significance of the 19th is that the March SPI futures contract expires. As a result, all the funds with large futures positions will be doing one of two things. Either they roll out of the March contract into the next month, which is the June contract.

Mr. Market

Mr. Market is very obliging indeed. Everyday he tells you what he thinks your interest is worth.

Benjamin Graham
The Intelligent Investor

RBA cutting cash rate from 4.25% to 3.25%

On the 3 February 2009, Reserve Bank of Australia board has decided to cut the cash rate by 100 basis points, to 3.25 per cent in a bid to cushion a flagging economy. The significant deterioration of the global economic conditions has affected household and business confidence and has a major impact to the financial institution with results in a sharp economic contraction in the December quarter that followed the Lehman Brothers collapse. There is also a sign of declining in the global inflation since the middle of 2008 and it is likely to decline further.

China is also showing sign of economic slowdown even though the Chinese economy is still growing but it has contracted since the boom period. This reduces Chinese commodity consumption which indirectly affects Australian economy because Australia exports commodities to China. This rate cut will also lower the cost of funds and over time it will increases the household expenditure and businesses investment. It will be very likely that housing affordability is expected to improve due to the massive rate cut by the RBA. This also meant that mortgage repayment will be lower and gives the consumer more spending power on other goods and services. With the RBA cutting the cash rate, it will help to cushion the Australian economy from the contractionary effects that are coming from overseas economy.

The All Ordinary ended up 0.16% higher after the government announced the fiscal stimulus package and the RBA cut interest rate by100 basis points. At the end, the market closes higher because it was pushed up by the financial stocks which received the news positives.

Fast growing and cash positive companies

Despite the current economic gloom, there are some companies out there that are defying the trend and posting outstanding performances. This free member showcase highlights three interesting companies:

> Universal Biosensors: Mark Morrisson, Managing Director
> M2 Telecommunications Group Limited: Vaughan Bowen, Managing Director / CEO
> XRF Scientific: Terry Sweet, Managing Director

Event	Showcase: Fast growing and cash positive companies
Date:	Thursday 16 April 2009, 12.00pm to 2.00pm
Venue:	Shaw Stockbroking, Level 21, 90 Collins Street, Melbourne
Cost:	Free for members; $44.00 non-members
Register:	Online or download the event registration form

More great professional development events in Melbourne

Don't miss our next Women in Finsia networking event on Thursday 21 May, featuring Professor Carol Adams, Deputy Dean, La Trobe University. Visit www.finsia.com/events for more details or a full listing of events around the country.