Sunset Strip | Aussie Afternoon Institutional Market Wrap

Aussie market got hammered at the open and then traded sideway for the rest of the day. The market ran into a few things today: (1) Greece deal uncertainties (2) Rising bond yields (3) US data putting pressure on rate rise outlook (4) Option expiry (5) tax loss selling (6) institutional investors reducing exposure before school holidays (7) Chinese equities resuming selloff mode (8) HSBC joining the bandwagon downgrading Aussie economic outlook (9) Lack of leadership by political leaders who are stuck in scare mongering and bickering (10) Corporate downgrades and management changes keep coming pre reporting season. Private equity looking over WOW rumour saw the stock jump up 5%, but we don’t think acquirer will rush to take over a stock with structural problems, management instability, rising competition and result with potential downgrade to come when they can wait for deal at a lower price (i.e. below $25). Australia post joined the firms sending more people to the unemployment queue as they package a lower cost base under the new revenue/operational model for a float in 12mths. (VIEW LINK)