Sunset Strip | Aussie Afternoon Institutional Market Wrap

Mathan Somasundaram

Deep Data Analytics

Aussie market delivered fourth straight positive day on the back of global optimism that China is taking the right steps forwards. We turned cautiously positive when the market opened up with a big sell on Tuesday and the market fell to long term fair value. This valuation support level has held for the past 3 years and we see no reason why it will fail now. Then PBOC removed support for the Shangbang and delivered stimulus for the local economy on Wednesday. Then PBOC followed it up with more cash injection to improve liquidity and reduce borrowing costs. Shangbang popped up 5% yesterday in the last 30min…and today it’s up nearly 5%...DON’T FIGHT THE PBOC!!! The market is now showing value and the risk/return points to buying time…quality yield stocks in low growth outlook will deliver over time…global investor pain can be local investor gain…stay nimble…momentum building, fear subsiding and FOMO is inevitable!!! US and European markets are likely to take some profit as the weekend looms, but the downtrend is broken. (VIEW LINK)


Mathan Somasundaram
Founder & CEO
Deep Data Analytics

Over 30 years’ experience in the finance/tech industry. Mathan has worked extensively in all parts of the finance sector (i.e. County NatWest, Citi, LIM, Southern Cross, Bell Potter, Baillieu Holst and Blue Ocean Equities). Currently Founder and...

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