MARKET COMMENT: S&P/ASX 200 May Rise After Breaking Resistance

2257 GMT [Dow Jones] Australia's S&P/ASX 200 may rise further Friday after breaking major technical resistance from the April 2010 peak at 5025.1 yesterday. On a technical basis, the psychological 5000 level could now support the market for a test of the next resistance level at 5177. ANZ (ANZ.AU) shares may weaken after its 1Q trading update revealed downward pressure on deposit margins, and weaker income growth than NAB (NAB.AU) and CBA (CBA.AU). Investors could switch to CBA (CBA.AU) and Telstra (TLS.AU) before they go ex-dividend on Monday. BHP (BHP.AU) ADR's fell 0.5% to A$38.72, but BHP broke resistance at A$38.25 yesterday. Rio Tinto (RIO.AU) is poised to break equivalent resistance at A$72.30. On the offshore front, European GDP data disappointed the market, with Eurozone 4Q GDP down the most in nearly 4 years. Wall Street appeared to look through the European GDP data, helped by lower than expected jobless claims, and Berkshire Hathaway's US$23 billion purchase of Heinz. S&P/ASX 200 last 5036.9. ([e-mail])

 
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