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HEXUS.sharewatch: Bailout bounce short lived

by Scott Bicheno on 29 September 2008, 10:11

Tags: Dell (NASDAQ:DELL), Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), NVIDIA (NASDAQ:NVDA), Avnet (NYSE:AVT)

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On 19th September we asked if the US government plan to bailout the financial system was the beginning of the end of the credit crunch.

A week or so later the bailout has yet to be approved by Congress so it's too early to come up with an answer, but we can conclude the mini-bounce that greeted the first announcement of the plan was a false dawn.

Comparing prices at around 9am today with those at close of business on the 19th - the day of the bailout announcement - show a broad retreat from that day's highs.

Of the market indices, the Dow is down 2.2 percent and the NASDAQ down four percent. The FTSE 100 is down 6.3 percent, but this figure is taken after UK markets opened this morning and the FTSE dropped by over 100 points, mainly due to the Bradford & Bingley nationalisation news. It closed last week at 5088.47, down 4.2 percent from the 19th.

Consequently most of our list is down too, in many cases more or less back to their pre mini-bounce prices. The biggest losers are Apple and Avnet, who are both down around nine percent, which is pretty much what they gained on the 19th. Yahoo!'s five percent gain has been eradicated too.

Some companies are still clinging on to at least some of their gains, with big boys HP, IBM and Intel all still up on their 18th September prices. AMD and Google have also clung onto some mini-bounce gains despite dropping by 4-5 percent since the 19th.