Australian Markets

ASX Rejoicing over 25.9% Increase in Net Profit - Share Trading Boom

Australian Stock Exchange listed stocks with the largest dollar gain and in the S&P/ASX200. Why should a share trader be interested? Because CFDs are on margin - usually 10% on the ASX200, and the larger the dollar $ move the larger the profits. Why look at the largets Gain and Losers? because you can either go Long or Short, respectiely.

In this section of MyShareTrading.com we look at the big movers among the Penny Stocks listed on the Australian Stock Exchange. What are penny stocks on the Australian Stock Exchange? Well for the purposes of this website - any stock below 100 cents or $1. What is a penny?

Penny Stock Movers for the Australian Stock Market today: Travel.com.au [TVL] moved 2,782,010 shares to the value of $701,649 today escalating in price by 54% with a high of 0.285. Washington [WRL] moved 53.33% with a high of 0.23. Latrobe [LMG] moved 23.08% with a high of 0.017 - 41,028,302 stocks were moved to the value of $621,982. Sabre [SBR] showed a 20.83% move with a high of 0.145. Falcon [FCN] moved 27.78% to a high of 0.345. Allegiance [AGM] moved 27.59% to a high of 0.43. Penny stocks move spectacularly but the inherent risk of trading these stocks is the lack of liquidity.

Peter Costello, the Australian treasurer put out another warning yesterday at a Committee for Economic and Development of Australia lunch in Sydney. Costello said that "Those investing in resources stocks could end up being burnt, like those who invested heavily during the global information technology boom in the late 1990s. When you get into the middle of these booms - the property boom, the tech boom, the resource boom - the tendency is always to think it will last forever, but none of them do. This boom, like all booms, will come to an end. If you put all your eggs into resource companies you will be in as bad a situation in a couple of years' time as people who put all their eggs in the tech basket." Maybe he was trying to protect mum and dad investors hyped about the booming resources market and the spectacular returns being achieved in the market at the moment. Of course this is sound advice for the general public. But for people conducting share trading like us - this advice should not concern you too much. If you have proper risk management strategies in your stock trading plan then you should not worry too much about this downturn. In fact you should be looking forward to shorting opportunities.

ASIC is cracking down on brokers - with the vision of having them disclose any connections - or fees that they receive from companies they review in their research notes. Given the recent events and news from Citigroup and the Westpoint collapse, ASIC has called for submissions to a discussion paper detailing case studies of examples where there has been conflicts of interest. In the discussion paper, ASIC presents how retail and wholesale financial advisers and fund managers in their research reports currently manage their conflicts of interest.

An article from the Intelligent Investor reckons Telstra is a Long Term buy. The Telstra share price is hovering at absolute lows and it is tempting to buy into the stock on the principle of buying stocks cheap in the hope for selling it high. But according to the subscription service that now is the opportunity to get into this blue chip stock. They did recommend the stock earlier in October 2005 long Term Buy at $4.22. People who bought it at those levels must be hurting though. They also recommended the stock in February 2006 at the price $4.06.

The Australian Bureau of Statistics (ABS) found that total personal finance commitments lifted 2.1 per cent to an adjusted $6.490 billion in February - following a 3.6 per cent increase in January. This could be translated in a consumer confidence in the economy. This may be attributed to an unemployment rate at a 29 year low of 5 per cent and job advertisements at record levels.

Merrill Lynch monthly survey: Bear Market's a Coming Around the Corner with Funds Fearing Economies stretched. Short Opportunity

Potential takeover targets in the Australian Equities Market