Sunset Strip | Aussie Afternoon Institutional Market Wrap

Aussie market ran up hard on global positive sentiment to deliver third positive day in a row. Market is up nearly 5% in three days with yield and currency stocks leading the fight back. Market was well supported with 3 out of the 4 “Once Were Warriors” Big Caps (i.e. BHP, STO, TLS and WOW) making big moves up while STO was the underperformer. US Fed expectations of rate rise have moved from “will they raise” to “by how much and how long will it take to normalise”. Big Caps outperformed Small Caps again with Banks leading the charge. The exposure to new economy, global business models and the premium growth and yield to value offered by MITCH (Media, Information, Telco, Consumer and Health) sectors are in the forefront of bargain hunters in the rebound….even more attention needs to be paid to the Small Cap MITCH stocks. Tomorrow is Friday….and given the weather forecast in Sydney (i.e. hitting 40 degrees)…it’s actually FRY DAY and we may see some “end of week” profit taking after the big bounce. (VIEW LINK)