Dealforfree clients bullish; Aristocrat rebound tipped 15:09,...

Dealforfree clients bullish; Aristocrat rebound tipped
15:09, Tuesday, 27 May 2003

Sydney - Tuesday - May 27: (RWE) - Dealforfree.com clients
remained bullish about the Australian sharemarket despite a pause in the
rally that started in March, said senior dealer Scott Scrase.
"Clients are buying on dips or on good news and continue to take
long positions, even though the S&P/ASX 200 index has failed to make new
highs since late April," he said.
Mr Scrase said Aristocrat was a good example of this phenomenon.
"Despite a 32 per cent fall in the price of Aristocrat today, we
have seen a tenfold increase in the amount of buying activity for this
stock since the stock came off halt this morning," he added.
"It looks like investors are trying to pick a bottom here and
are assuming all the bad news has been released.
"Buying activity suggests clients are expecting a rebound from
current lows, at least in the short term," Mr Scrase said.
Mr Scrase also said Peptech was heavily traded today.
"The news about the arthritis drug had buyers move into Peptech
today as it traded above the $1.80 level," he commented.
"However, the stock has failed to follow through on the upside.
"It appears the old highs on the chart around $1.80 to $1.84 are
providing resistance to further gains.
"Peptech has erased most of today's early rally but clients are
holding on, hoping the gains over the last month will continue," he
said.