The ASX is selling off in above average volume today, what is driving the move

James Marlay

Livewire Markets

The ASX is selling off in above average volume today, what is driving the move? I reached out to a dealer at a local fund manager to get his take. I suggested that it was possibly offshore money looking to make an exit. Here is what he had to say; A lot of that has already happened, as everyone has been calling the AUD lower for some time. It is more the risk of increasing bond rates in the USA causing selling in yield names ie Banks, TLS etc. The other interesting trade is the yield funds selling stocks once they go ex dividend. Stocks are losing much more than their div and franking ie SKE ex yesterday $0.095 down $0.21 yesterday and another $0.07 today currently. IRE ex $0.16 on the 11th down $0.32 on the day and down another $0.12 in the 3 days following.


James Marlay
Co Founder
Livewire Markets

Livewire is Australia’s #1 website for expert investment analysis. We work with leading investment professionals to deliver curated content that helps investors make confident and informed decisions. Safe investing and thanks for reading Livewire.

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.

Comments

Sign In or Join Free to comment