Local market started positive and maintained the pace with better commodities and higher rates outlook. US market remains the overhang and NASDAQ falls to the 50 day MA for the third time since US elections…last time NASDAQ broke 100 day MA, we had the high PE growth sell off…local investors will be watching!!!
The best performing sectors were Miners, Financials and Energy while the worst performers were Gold, Industrials and Health Care. On the sector/stock front….(1) SRX had a massive short covering rally on business restructure and growth stabilization update (2) CKF leads the way with outperforming consumer retail stocks after recent KFC acquisitions (3) SXL was the best performer of the old media stocks after government gave fee relief…rest of the sector ran on the same theme (4) IAG updated that higher than expected reserves will be released…the rest of the insurance sector also ran on the similar theme (5) SGM ran on better Iron Ore and steel outlook (6) TGA looks way too cheap in the retail space (7) BKL jumped on leadership update. US Fed confirmed their rate hike outlook, ECB talked about tightening monetary policies and ex-RBA member said there may be 8-9 rate hike in Australian in 2018 and 2019. I guess anything is possible…but I stopped believing in Santa about 40 years ago!!!
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