Sunset Strip | Aussie Afternoon Institutional Market Wrap

Aussie market started negative and remained there ahead of the RBA meeting tomorrow as well as investors reducing exposure before the drinking begins for the race that stops the nation. We don’t think RBA will cut rates tomorrow, but will be forced to cut twice as the economy declines over the next 12mths. ANZ, NAB and WBC go ex div in the next few weeks and that will drive yield hunters to jump in to make 14% grossed up I just over 12mths. BKL and BGA decided to get together and really make a move on China while BAL lost its take-over premium as BGA finds a new China dance partner. M&A playbook moved from Qube/Asciano to REA/IPP…and the market is reading through to CAR/ICQ now. Media stocks were seeing more interest on government looking to move on media reform that could drive consolidation. GWA continues to get smacked since their AGM update as brokers get in line to downgrade. (VIEW LINK)