Sunset Strip | Aussie market held out for another small positive to end the week with 12th straight positive days delivering just short of 10% on the back of...

Sunset Strip | Aussie market held out for another small positive to end the week with 12th straight positive days delivering just short of 10% on the back of global investor short covering due to RBA action. The turnover today also went back to low $5b, which is around 20% discount to the turnover in the past 3 days. We are also very close to the highest market multiple expansion since GFC compared to long term multiples (i.e. the S&P 300 level of 5800). We maintain our long term view of the market running to 6500 by 2016 on dividend yield thematic. But in the short term, the market is close to our profit taking level of 5800. Stay nimble, the market momentum is being pushed by global investors on short covering. When that stops, local investors will also take profit. Volatility index is beginning to move higher as we move towards the main part of the reporting season. (VIEW LINK)