profit taking expected

Mathan Somasundaram

Market lost the momentum from four straight positive days to deliver a negative day. We are in the school holiday period where most investors will take the next two weeks off with Christmas and New Year breaks. We have seen better volumes this week than most expected and that may... Show More

Mathan Somasundaram

Market moved up again despite negative global sentiment to deliver fourth straight positive day. Aussie market looks to be suffering from delusions of grandeur by maintaining the positive momentum despite falls in global markets, currency, volatility index and yields. We are in the school holiday period where most will take... Show More

Mathan Somasundaram

Market moved up again on global positive sentiment ahead of the US Fed update to be only 40 points off the 2016 high…but on accumulation (i.e. dividends included) basis we are at all-time highs (i.e. created a new high today). The positive performers today were led by Discretionary retail and... Show More

Mathan Somasundaram

Market moved up and down like a headless chook before finishing negative on the risk that Chinese stimulus may wane after solid retail and factory data. We are seeing the early stages of friction between the corporatisation of the western fiscal policy rubbing against the authoritarian cohesion of the eastern... Show More

Mathan Somasundaram

Market is flip-flopping between aimlessness and profit taking mode ahead of the EU breakup worries and US Fed raising rates. Market continues to struggle with historically high commodity prices with historically high USD while US rates are going up and US volatility is going down….something has to give and that... Show More

Mathan Somasundaram

History shows pullback in volatility index flags profit taking risk in the market. We continue to see US market, US Dollar Index and US yields close to the historical highs while volatility indices are at the lows. We see high risk of a pullback in the US market after exuberance... Show More

Mathan Somasundaram

Market was back in the aimless mode without mother goose US to set the path tonight. Thanksgiving holiday tonight in the US means the world will be confused tonight. Tomorrow night may also be lacking sentiment in the US as investors would have taken the day off to make the... Show More

Mathan Somasundaram

Aussie market got smacked on the open before making a slight recovery through the day. Investors were rushing to the door before the ECB update and US jobless data update tonight. We also have Chinese CPI and US Fed economic forecasts tomorrow. The risk in the market means that fund... Show More

Mathan Somasundaram

Low growth and low interest rates remain the key risks for financial stocks as global economies move from one disaster to another. The growth and yield to value outlook continues to favour banks above diversified financials, insurance and property trusts. The currency is likely to weaken as market optimism of... Show More

Mathan Somasundaram

Aussie market pulled back after an opening pop before making a slight recovery to finish negative. The global markets are in a confused state as indices reach stretched valuation levels on low interest rates while FOMC update overnight was clear as mud. We remain of the view that FOMC missed... Show More

Mathan Somasundaram

Aussie market fell on the open with global market sentiment, weak oil and bank sector worries after WBC update. The market was pulled down by Banks and TLS while IT and retail were the best on the positive end. Local market seems to have broken the uptrend after pulling back... Show More

Mathan Somasundaram

Aussie market fell from the open for the second day in a row but this time the market has moved to profit taking mode as we have been expecting. We are in the August profit taking cycle ahead of the reporting season. All the positives are in the price while... Show More

Mathan Somasundaram

Aussie market fell from the open to break the 6 day positive streak on weak global sentiment and oil reaching bear territory while a mini bounce on another wasted rate cut at 2:30pm faded as quickly as it came. The market has had a great run since mid-June and we... Show More

Mathan Somasundaram

Aussie market pulled out sixth straight positive day on low bank holiday volume despite weak US growth and mixed China data. That makes it 25 positive days out of the last 32 trading days since mid-June and it also starts the week positive after 3 straight weeks of positive return.... Show More

Mathan Somasundaram

Aussie market pulled back with global sentiment as central banks remain on sidelines after markets ran up on stimulus hope. The Aussie market today was a reverse of yesterday as miners and gold were up while just about everything else was down. Super markets were seeing some selling pressure as... Show More

Mathan Somasundaram

Aussie market opened positively on global sentiment and then withered away after making two attempts at staying above 5530. Aussie market today was mainly driven by the rate cut expectations. Regulatory approvals helped push AIO/QUB and MTS. SIV follows CIM in getting hammered for negative market update. The market is... Show More

Mathan Somasundaram

Aussie market moved up on the back of banks despite falling commodities and weak global sentiment. Aussie market today can be explained as a tale of two cycles. Despite the short term profit taking worry, we continue to remain positive on the medium to long term outlook for the equity... Show More

Mathan Somasundaram

Aussie market started negative and then fell hard before bouncing back to deliver a solid negative day in line with the US sentiment over the weekend. The negative performance today puts the local market into third consecutive negative weeks. Over the past 12mths, we have not had four consecutive negative... Show More

Mathan Somasundaram

Slowing global growth, weak commodity prices and rising US inflation ahead of the US reporting season remain potential catalysts set to drive profit taking in early April. US Fed has locked its path to interest rate normalisation to the rising inflation band wagon. Despite weak expectations, the US reporting season... Show More

Mathan Somasundaram

Aussie market started positive on global sentiment and remained there as the end of month and quarter rolled over. Aussie market is trading on synch with US market after US Fed moved to water down rate rise cycle and deflate the USD. US corporates are not seeing better growth outlook... Show More