With US markets closed and a lack of macro news, the stock market remains inwardly focussed today as investors respond to company results.
Amongst the larger stocks, ongoing selling in Brambles after yesterday’s result continues to weigh on the index. Investors are concerned about the medium term strategic impact of online shopping on Bramble’s US business which is weighted towards the distribution of groceries and healthcare products to bricks and mortar retailers. However, the company did note yesterday that is has had talks with Amazon.
Caltex on the other hand has produced a solid result, helping to support the Australia 200. The company continues to do a good job on productivity and the market has made an adjustment for the loss of revenue that will result if the ACCC approves the sale of Woolworths’ fuel business to BP.
The overall outcome of profit results over the past 2 days has been mixed and leaves the Australia 200 index faltering nervously below established resistance at 5827. The BHP profit result due for release after the market closes may have a bearing on whether the index can break through this level. A close below the lows of recent days around 5775 would be an indication of weakness, signalling potential for a retreat into this year’s trading range instead of a break to new high ground.
