Sunset Strip | Aussie Afternoon Institutional Market Wrap

Mathan Somasundaram

Deep Data Analytics

Aussie market started strong and then pulled back before a late recovery to end a decent positive day. The market valuation looks stretched at 5200-5300 and the two main sectors (i.e. banks and miners) seem to run into a brick wall. The two key risks for the Aussie market in the short term are US reporting season and Commodities. Last two negative quarters drove the market into profit taking mode and we expect this quarterly will also deliver similar result from the highs. Any profit taking in the US and Australia will get dragged down. The next big negative is the risk of falling commodities and the currency as a by-product. Pullback in US market, commodities and/or currency will be negative for Aussie market. Time to be patient and pick the time to buy-in or add more exposure…maintain medium to long term view > long Yield and Gold, short Iron Ore and Oil. May has historically been a negative month. Stretched valuations and lack of positive catalyst means that the markets are highly prone to repeat history. (VIEW LINK)


Mathan Somasundaram
Founder & CEO
Deep Data Analytics

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...

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.