Shares briefly erased all of yesterday's gains before paring their losses as most Asian markets rallied and the biggest float of the year, Medibank Private, offered investors a quick stag profit.
At lunchtime the ASX 200 was 37 points or 0.7% lower at 5325 but on the improve after touching a mid-morning low of 5297. Gold +0.2% was the only sector to extend yesterday's gains. The metals & mining sector slid 2.1%, materials 1.8%, energy 1.9% and utilities 1.1%.
Shares in Medibank, the third largest float anywhere in the world this year, opened at $2.22 or 11% above the $2 paid by retail investors. The opening price also offered a paper profit to the institutional buyers who received their shares in a book-build at $2.15.
Asian markets were mixed. China's Shanghai Composite put on 0.25%, Hong Kong's Hang Seng eased 0.05% and Japan's Nikkei added 0.35%. Dow futures were recently down 12 points or less than 0.1%.
Crude oil futures retreated 13 cents this morning to US$75.66 a barrel. Spot gold was 90 cents firmer at US$1,198.60 an ounce. The dollar was buying 86.01 US cents.
Is it just me or does yesterday's rally seem a long time ago? Tough market. Not many shares going on with it from yesterday. Still, there are always opportunities. APN opened too cheap, as did DLX after going ex-dividend. HVN offered a cracking trade for anyone quick enough to get in at the low. I also took MND on the basis that the sell-off was overdone since NWH's problems related more to company-specific issues than those of the industry - that thought has yet to pay off. Lately added TFC in the expectation/hope it trims its fall this arvo.
