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Equity Market Rally Contradicts Weak Earnings

Published 17/08/2016, 08:00
BHPB
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David Buik, Senior Market Commentator at Panmure Gordon, joined the Tip TV Finance Show to discuss Billiton’s journey from being one of the crowd favourite to “one of the worst of the mining lot”, and the ‘most hated’ rally in the stock market. Interviewed by Nick Batsford, CEO at Tip TV.

Highlights:

“BHP Billiton (LON:BLT) could have made it to anyone list of ‘must own’ stocks post GFC and nobody would have believed back then that the company would post horrible results seven years down the line.” The company has blamed falling commodity prices for 31% plunge in its revenue.

Buik also sheds light on the ‘most hated’ rally in the stock markets in the recent history. He states the equity market rally is ignoring the weak prospects of corporate earnings and questions the sustainability of the gains.

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