The session started strong, catapulting the ASX 200 close to 5800 points following encouraging leads from Wall Street and a number of upbeat earnings reports, but investors have started taking profits after the recent rally.
Looks like a five-day rally that has added 150 points to the ASX200 is finally running out of steam.
After a promising start to today’s session that pushed the benchmark index close to 5800 points, investors have started to cash in some of their profits.
“Given that our local index … was approaching the psychological barrier of breaking through 2017 highs, it’s not surprising to see a level of profit taking,” said Gary Huxtable, client adviser at Atlantic Pacific Securities.
He noted that after some frantic movements, particularly in the top 20 stocks this morning, the local sharemarket is slowly unwinding this afternoon.
“We may still finish in the green today, but it’s interesting to note that the bears have gained a semblance of control throughout the day,” Huxtable said.
Shares have been on a roll since no other than the US President revived the Trump trade last week, flagging a substantial tax cut announcement over the next few weeks.