Liams Last Post : markets rebound as buyers take advantage of weakness

Good Afternoon ,

 

Strong end to a hairy week,  Markets reacted nervously this week , initially on the sell off in China at the weekend and then to the news from Dubai that they were seeking a standstill agreement with Bond holders.  That and the London Stock exchange technical breakdown made sure that Thanks Giving day was one to be remembered for al the wrong reasons… But the falls yesterday were on quite light volume , there is definitely money looking to be put to work and rather than a sense of panic ,  the atmosphere was definitely calmer with investors looking for opportunities.

 

Today as the week closes , there is a rebound in Europe though the USA catches up with a downward moves of -1.2% at this stage.

 

Across Europe the Financials have been the hardest hit sector down -3.85% , though there is a wide variation of performances within that group. Most sectors recorded losses this week , IT-2.1% , Industrials -2% energy -1.8% with Materials , Consumer discretionary and Utilities all down roughly -1.5%

 

In Ireland this will be the week remembered for the Public sector strike and the massive shopping day up the North. Next week the Public sector are going on strike again. It is incredible that the only sector with guaranteed employment and pensions went on strike for a day in a move that generated not a single iota of good will from the Private sector.

 

This week the only Corporate of note to report in Ireland was Greencore , the numbers were ok , we nudged up our forecasts but the stock has been quiet as the Carroll Stake placing is awaited

 

I still continue to Like CRH and having once again rebounded back into the 17's after testing the lows , I am happy that this is indeed a level to be buying the stock. Smurfit announced another price increase and with the mark down the price has come back , again an attractive level. Grafton is back at the levels I am happy to strongly push again and Irish Life has finally found a level where buyers are prepared to come back into the stock.

 

I have to say that I think that many of the ISEQ companies are at attractive levels , we have heard from almost the lot of them over the past few weeks and there has been no surprises and indeed a few upgrades and this is very significant looking ahead to 2010 and the next few crucial weeks to reposition portfolios to take advantage of  the recent pullback by adding to positions at these prices….

 

 

Have a great weekend ,  Aryzta numbers on Monday , they wont be good but we all know that …. And Ireland vs South Africa tomorrow…. The big test for the Iceman Johnny Sexton…

 

Liam

 

     

 

 

 

 

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Liam Boggan

　

Merrion Stockbrokers

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