MARKET COMMENT: S&P/ASX 200 May Rise As Dividend Payments Flow

2251 GMT [Dow Jones] Australia's S&P/ASX 200 may rise as dividend payments continue to flow into high-yield stocks. Goldman Sachs says this week is the most intense dividend payment period of the year, with A$5.5 billion hitting investors pockets. Banks, property trusts, consumer staples, telcos and utilities may outperform on that basis. Financials could get additional support after Cyprus was granted an extra two years to achieve reforms tied to its EUR10 billion bailout. U.S. exposed cyclicals like Brambles (BXB.AU) may outperform after U.S. factory orders rose 3% to five-month high in February, pushing the S&P 500 up 0.5% to a record high. However, the materials sector may weaken again after metal prices fell, with spot gold down 1.5% to US$1,575.3, spot iron ore down 0.9% to US$136.10, and LME base metals down 1%-2.9%. ADRs suggest BHP (BHP.AU) will open down 0.2% at A$32.65. Macquarie has upgraded Atlas Iron (AGO.AU) to Neutral from Underperform, on valuation grounds. Overall quiet trading is expected before Friday's U.S. jobs data, and the outcome of BOJ and ECB meetings Thursday. The S&P/ASX 200 index closed 0.4% higher at 4985.5. ([e-mail])

 
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