Sunset Strip | Aussie Afternoon Institutional Market Wrap

Aussie market ran into overseas investor selling pressure flowing from the US Fed comments and growth downgrades. The global investors are telling the Aussie market that it is going to get a lot worse before it gets better. Australia is trading like an emerging market due to our commodity dependency, links to China, government instability and lack of any credible growth plans. The selloff today was hard and fast in the morning and we were aimless after that. The school holidays period has started when usually the retail investors take over from the institutional investors on lower volume. Global investor selling pressure will be hard to absorb in these low volume days. We remain of the view that the market will see buying support on yield thematic around the 5000 fair value level. The sector performances show that Health Care, IT and Telco were the relatively better performers as the new economy continues to outperform the old economy. REITs were back in favour on M&A activity. (VIEW LINK)