Sunset Strip (Afternoon Report) | Aussie market opened negative on the lack of global lead and remained weak with selling pressure on all fronts. Aussie market was down 0.38% while turnover was just below $4.1b. Market is becoming very negative on Iron Ore and AUDUSD despite better China data yesterday and Iron Ore holding up overnight. If the negativity continues, we may have to get positive just to be different. We are beginning to see more strategist and economist coming to our view that unemployment will hit 6.5%, consumer sentiment recovery will be delayed and any chance of rate rise is now in the second half of 2015. Keep in mind that there are a large number of property, infrastructure and other stocks going ex-dividend on Thursday. BNO had a cracker day up 22% with Merck deal announcement while KMD dropped 12% on another retail downgrade. (VIEW LINK)
It is also funny that market is shocked that warm winter hurts KMD. KMD has a solid brand and global expansion plans. Not sure you need discretionary retail exposure, but KMD is one of the better picks and I expect it to recover from these levels.
I thought it was ironic that the KMD downgrade comes as we get hit by massive snow storms and cold winds. I suspect KMD will do decent trade over the next few days.