Sunset Strip | Aussie Afternoon Institutional Market Wrap

Aussie market held up a positive day mainly due to the banks despite negative global lead. The risk remains with Greece negotiations getting to the eleventh hour. We still remain of the view that the global politics, self-interest and the in-ability to deal with long term structural issues will see Greece, EU and IMF to come up with a last minute miraculous predictable deal to last 3-6mth before we come back to this song and dance again. Chinese equity markets were down over 6% on Friday and the market is shut today. We maintain our positive long term view on the yield trade (i.e. banks, div financials and telcos) while health care looks the best growth/currency story and gold sector looks the best margin/global risk play. Banks continue to hold the market up while the market was reducing market exposure on both long and short side for Greece risk, tax loss and school holidays. (VIEW LINK)