The latest edition of our fortnightly email newsletter was sent to subscribers on the 3rd of June. This edition looked at franking credits, provided a summary of the movements in markets over the past fortnight and looked at the golden rules of investing. If you would like to be added to the mailing list please click the following link to be taken to the sign up page - The Financial Fortnight That Was Sign Up Page.
The latest edition also contained the following Market Update:
Market Indices
Since our previous edition, Australian and global sharemarkets have both experienced negative movements. The S&P ASX200 Index has fallen 4.66% from the 16th to the 30th of May. It is now down 9.43% from the same time last year and down 10.81% for the calendar year (2008) so far. The MSCI World - ex Australia, a measure of the global market, has fallen 1.81% over the same period. The index is down 10.45% from the same time last year and down 5.95% for the calendar year so far.
Emerging markets have also experienced negative movement with the MSCI Emerging Markets Index falling 2.83% since the 16th of May. It is up 16.68% from the same time last year but down 3.66% for the calendar year so far.
Property trusts have also fallen since the 16th of May with the S&P ASX 200 A-Reit Index (formerly known as the Property Trust Index) falling by 5.19%. The index is down 33.36% from the same time last year and also down 23.61% for the calendar year so far.. The S&P/Citigroup Global Real Estate Investment Trust (REIT) Index, a measure of the global property market, has fallen 3.19% over the same period. It is down 20.20% from the same time last year and down 2.17% for the calendar year so far.
Exchange Rates
As of 4pm the 30th of May, the value of the Australian dollar has risen against major benchmarks for the fortnight. It has risen against the US Dollar since the 16th of May being up 1.16% at .9559. It is up 16.74% from the same time last year and up 8.43% for the calendar year so far. Since May16th the Aussie has also risen 0.83% against the Trade Weighted Index now at 72.8. This puts it up by9.31% since the same time last year and up 5.97% for the calendar year so far. (The Trade Weighted Index measures The Australian dollar against a basket of foreign currencies.)
General News
Since our last edition the Australian Bureau of Statistics has released a range of interesting data. For the month of April, retail trade figures have reduced by 0.2%. This was worse than analyst expectations of a 0.2% rise.
They have also released the latest business indicator data up to the end of March 2008 with a 2.2% increase in company gross operating profits for the first quarter of 2008 compared to the December 2007 quarter and up 7% over the year. News reports suggest that economists were expecting gross operating profits to rise by 1.0 per cent in the quarter.
