Sunset Strip > Trading Day Wrap From Blue Ocean 20170703

Mathan Somasundaram

Local market ran into a brick wall after lunch despite solid China data. China Caxin Manufacturing data was better than expected and in expansion territory…good for commodities who had another good night. Bond yield proxies and currency proxies were under pressure from the start while banks joined the slide after lunch. NASDAQ maintains the volatility and the down trend…continue to see risk in high growth as Resources recover…take some profit in the High PE local Industrial growth stocks and come back in a month. Fundies have set the positions for school holiday period…Retail investors have flicked the tax loss candidates…Fundies have locked in their financial year performances…anything could happen next week…time to remain nimble as US markets have more downside than upside in the short term and likely to drag Aussie market down as well. The best performing sectors were Energy, Miners and Telecom Services while the worst performers were Retail, Utilities and Health Care. On the sector/stock front….(1) MSB & IPD saw interest after the tax loss as both sectors are doing well (2) FXJ lead the way down as they confirmed the deal was off and back to domain partial spinoff plan (3) health care remains weak as AUDUSD climbs and CSL comes off stretched valuations (4) Utilities and infrastructure stocks remain weak as yield bounces and AGL comes off stretched valuations (5) Despite weak USD, gold struggling to bounce (6) BWX acquisition should give it another leg higher (7) Anything linked to TANZANIA will run into risk with proposed legislative changes negative for miners listed there… Preliminary list: BKT, MNS, ORR, PEK, TRL, KNL, VRT, GPX, CXX, LTR, STA!!!

Click here for the full report.


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...

Expertise

No areas of expertise

Comments

Please sign in to comment on this wire.