NK nuke blast the market..and Telstra
October 9th 2006 13:18
The anticipation was for the release of Telstra's T3 offer, which was delayed by 2 hours, trumpeted by the Government but criticised by the Opposition for its hefty marketing expenses paid for by the taxpayers' money. As of 10.24 pm, The Age reported that Telstra has got its potential;
In the report, an analyst from Fat Prophets was quoted;
"Telstra looks attractive from a short and long term investment horizon, based on the fact that in the short term you're getting a very attractive yield and the longer term upside from the successful transformation of the company," Mr Canavan said.
Yet, Telstra shed nine cents today despite a scramble for its shares and just after 12pm, the market went sliding after reports that North Korea conducted its first nuclear bomb test in an underground site which was confirmed by South Korean Government. Although there were no concrete evidence that the test has been carried out but judging from the rather fierce reaction and condemnation by North Korea's closest ally, China, the blast is safe to be considered tried and tested.
Personally, I expect the test to be of something yet it will be nothing. Asian countries in general, with exception of Japan, would probably raise some eyebrows but in no time, it would probably be a non issue as it is finely understood that the North Koreans are famous for its rhetoric and no action. China will not hesitate and is ready to raise its whip on North Korea for being "naughty".
The reaction of the market to the test for the rest of the afternoon is understandable but it is unlikely that such trend would last long. However, the media would probably splash its pages and fill air time discussing and analysing the consequences of the test but one thing for sure is that North Korea is not a terrorist group but a rogue nation that could be tamed through diplomatic channels and pressure. Afterall they just want the attention from the US.
The Portfolio 1.5 - EW did not react strongly to the nuclear test as it remained steady at a closing valuation of 12.48% and it ended the day with a paper profit of $4,328. The ASX S&P 200 benchmark index ended 0.4% lower.
In the report, an analyst from Fat Prophets was quoted;
"Telstra looks attractive from a short and long term investment horizon, based on the fact that in the short term you're getting a very attractive yield and the longer term upside from the successful transformation of the company," Mr Canavan said.
Yet, Telstra shed nine cents today despite a scramble for its shares and just after 12pm, the market went sliding after reports that North Korea conducted its first nuclear bomb test in an underground site which was confirmed by South Korean Government. Although there were no concrete evidence that the test has been carried out but judging from the rather fierce reaction and condemnation by North Korea's closest ally, China, the blast is safe to be considered tried and tested.
Personally, I expect the test to be of something yet it will be nothing. Asian countries in general, with exception of Japan, would probably raise some eyebrows but in no time, it would probably be a non issue as it is finely understood that the North Koreans are famous for its rhetoric and no action. China will not hesitate and is ready to raise its whip on North Korea for being "naughty".
The reaction of the market to the test for the rest of the afternoon is understandable but it is unlikely that such trend would last long. However, the media would probably splash its pages and fill air time discussing and analysing the consequences of the test but one thing for sure is that North Korea is not a terrorist group but a rogue nation that could be tamed through diplomatic channels and pressure. Afterall they just want the attention from the US.
The Portfolio 1.5 - EW did not react strongly to the nuclear test as it remained steady at a closing valuation of 12.48% and it ended the day with a paper profit of $4,328. The ASX S&P 200 benchmark index ended 0.4% lower.
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