Over the weekend the member countries of the EU and also the IMF showed the strength of their convictions and a united front saying they will do whatever it takes to stabilise the Euro zone. This show of strength occasioned us to purchase back the majority of the portfolio.
The market opened just 35 points higher than Friday's close, and having pre-researched a number of companies over the weekend we made the following purchases:
BHP - for 15% of the portfolio purchase price $38.08, closing price $39.00
Woodside Petroleum - for 16% of the portfolio, purchased at $43.08 closing price $43.46
National Bank - we sold this one at over $28, purchased back at $25.06, closing price $25.54
Lend Lease - sold at $8.55, purchased back at $7.94, closing price $7.92.
These purchases leave the portfolio 69% invested.
We will expand more tomorrow on the economic rationale behind the portfolio change; but suffice to say we believe this is the first genuine opportunity to acquire quality stocks at discounted levels for our managed discretionary accounts this year.
As always if you have any questions please call us at the desk.