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. 

CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

CMC Markets Singapore may provide or make available research analysis or reports prepared or issued by entities within the CMC Markets group of companies, located and regulated under the laws in a foreign jurisdictions, in accordance with regulation 32C of the Financial Advisers Regulations. Where such information is issued or promulgated to a person who is not an accredited investor, expert investor or institutional investor, CMC Markets Singapore accepts legal responsibility for the contents of the analysis or report, to the extent required by law. Recipients of such information who are resident in Singapore may contact CMC Markets Singapore on 1800 559 6000 for any matters arising from or in connection with the information.