Since mid 2012 the Australian stock market has been on a roll with the ASX All Ords & S&P/ASX 200 both closing today above 5100 points as the bull market continues. When I last looked at a few 52 week high and low stock prices the All Ords/ASX 200 were around 4300 so not surprisingly most stocks are now trading much higher and investors generally should be a happier lot than they were back then. However some stocks have actually fared relatively poorly since October 2011 and this may help us understand what might be moving the stock market at the moment.
If we look at the table of stocks below we can see most stocks are now trading higher, and in many cases much higher, since the last review in October 2011. But the mining stocks- BHP Billiton (BHP) and RIO Tinto (RIO) have actually struggled but to date this has not put the brakes on the wider rally across the market. Fairfax Media (FXJ) like many other media stocks, is in a rough patch, and it is the only other stock which is trading lower since the last review.
52 Week Stock Prices Highs/Lows
(Last trade/closing prices as of 5th March 2013)
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A closing price in green means the stock is trading higher than last time a check of 52 week stock prices was undertaken. (February 2010) A closing price in red means the stock price has fallen over the same period. A figure in black means the share price is approximately the same as the last review.
Virgin Blue Holdings (VBA) name/code change to Virgin Australian Holdings (VAH)
Generally speaking not only are most stocks trading higher but they are also trading close to their 52 week highs which indicates just how broad the share market rally has been. As I have been saying for some years now, the All Ords/ASX 200 should have been trading between 4800-5200 and so now we are finally in that range. It appears for now at least, that shares are comfortably trading within that range although as I have mentioned before, I am expecting a correction of around 10% or perhaps even more if commodities prices take a tumble.
Now a quick look at some stock charts.
Platinum Asset Management (ASX:PTM) 2 year stock price chart
Platinum Asset Management (PTM) has rallied strongly over the last couple of months but curiously didn’t initially move upwards when the broader market started its move in mid 2012. I would class PTM as an income stocks and reckon many investors have bought into it to tap into the around 4% fully franked dividend.
Next up, a stock that is struggling – Goodman Fielder.
Goodman Fielder (ASX:GFF) 2 year stock price chart
GFF stocks are higher than they were at the last review but only just as if we look at the 2 year chart above we can see how the share prices has slumped. Personally when I see a stock like GFF with an ROE of around 7% I quickly move onto looking at another company.
Finally a brief look at a property/real estate related stock.
Australand Holdings (ASX:ALZ) 2 year stock price chart
Australand has probably benefited quite a bit from the interest rate cuts so my thinking would be that it hasn’t got much further to run. But for investors that we able to snap up shares when they were around $2.50 or below the dividend yield and capital gain would be giving their portfolios a nice boost.
So this latest review of 52 week share prices basically reflects what we already know – the market has enjoyed a broad rally, the mining stocks have been under some pressure and investors appear to have been moving backs into stocks.
But has the party just begun or is it later than we thought and soon the lights will go out?
Greg Atkinson is the editor of Shareswatch Australia and the Managing Director of Ohori Capital. He is originally from Australia but currently resides in Japan. He can be followed on twitter via @GregAtkinson_jp