Pakistan study notes for Matric, Intermediate, B.A, B.COM BSC, M.A, BCS. Free Pakistani Urdu educational school, colleges and University notes.

Formal Market Report Number 11

REPORT # 11

 

Sydney: Australian shares edged a modest 0.09 per cent higher on the back of investor approval of further resource sector consolidation, brokers said. The announcement of a reduction in official interest rates to 4.75 per cent did little to enthuse the market.

 

Reference      

This excerpt of the report has been taken from the Sydney Stock Exchange

 

Meanings of difficult words  

Edged                          moved up gradually
Modest                        moderate
On the back of             by support of

 

Tendency of the market

The market shows moderate upward movement

 

Governing factor

The investor’s interest in buying shares sent the market high. But the cut in the bank rate by the Australian central bank to 4.75 per cent did not affect the market.

 

Explanation

The Sydney Stock Exchange experienced heavy buying by the investors that took the index up by a .nominal 0.09 per cent, The central bank of Australia reduced its bank rate to 4.75 percent to speed up business activity and to encourage borrowings, but this act did not push up the market significantly high.

 

Summary

The Sydney Stock Exchange market showed upward movement, the sole reason being the buying pressure from the investors. The cut in the bank rate by the central bank did not play any role.

 

Forecast         

Keeping in view the buying pressure the market many continue going up the next day. The delayed reaction of the cut in the rate of interest is also likely to affect the market with promise.

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