Sunset Strip | Aussie Afternoon Institutional Market Wrap
Aussie market started positive on the China stimulus move and then ran into profit taking on low volume as the day went on. It was clear to see a rotation out of TLS and into WBC for the dividend cycle in November. We had expected China to deliver a rate cut and reserve ratio drop while we continue to expect another yuan devaluation to come through sooner rather than later. The best performing sectors were all the REITS and Metals and Mining while the worst performers were Telcos and Industrials. TLS was the big negative as investors moved into WBC for the dividend cycle in November. We expect the overall positive trend to continue with the financial sectors beginning to see support as more clarity comes with FSI response. Property bubble and higher tax worries will hit discretionary retailers and residential property stocks. The market today ran out of puff on low volume, while new home sales tonight will set the trend for tomorrow!!! (VIEW LINK)
Over 25 years’ experience in the finance/tech industry. Mathan has worked extensively in all parts of the finance sector (i.e. County NatWest, Citi, LIM, Southern Cross, Bell Potter, Baillieu Holst and Blue Ocean Equities). Currently Founder and...