Sunset Strip | Aussie Afternoon Institutional Market Wrap

Mathan Somasundaram

Aussie market ran out of puff after Westpac went ex div to deliver a slight negative day. The market opened up quite negative followed by a mid-day short recovery before trending slightly higher from the lows through the day. US market remains in a precarious position with growth outlook and valuation looking stretched. We are in the “Sell in May and Go Away” period for the US market and volatility index is pointing to profit taking. Time to keep adding to your exposure in Yield and Gold while taking profit in Resources. ANZ and WBC have already gone ex div while NAB and MQG will go ex div next Tuesday. Aussie market are susceptible to profit taking risk when they run into a lull ex div period in May, June and July. Given the move by RBA and the likelihood of US Fed pushing back, the downside risk from US correction is likely to be less than 5% for the Aussie market. The local rate cut cycle may get another boost from weaker employment data next week. (VIEW LINK)


Mathan Somasundaram

2017 - Now > Blue Ocean (AUS) > Market Portfolio Strategist 2012 - 2017> Baillieu Holst (AUS) > Head of Strategy, Quant and Data Analytics 2009 - 2012 > Bell Potter / Southern Cross (AUS) > Head of Quant and Data Analytics 2007 - 2009 > LIM...

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