CMC Markets Afternoon Market Commentary

The standout sectors today were in mining and energy. This came despite weakness in commodities markets over the weekend.

The major banks were a drag early as investors turned their backs on the government plan to wind back the bank guarantee that had made it less difficult for our banks to acquire wholesale money market funding. This only lasted an hour or so though before the banks found traction again.

JB Hi-Fi made headlines after announcing first half earnings rose 29 per cent to $76 million. The result was basically in line with expectations, as was their full year guidance ... what the market appeared to frown upon was news that the CEO, Richard Uechtritz, was stepping down.

And the Ten Network rose sharply today in line with news that the Federal government will offer rebates to commercial stations for their licence fees. The market sees this as being earnings positive for these companies as they compete with an ever increasing market of lower cost broadcasting.

Turnover was thin today as the market prepares to digest more earnings reports, and as we dust ourselves off after what has been a fairly rocky couple of weeks.