HALISTER1: Australian Rate-Sensitive Stocks Oversold, Macquarie Says

Australian Rate-Sensitive Stocks Oversold, Macquarie Says

(Bloomberg) -- Interest-rate sensitive stocks aren’t cheap but they are oversold on technical indicators, according to report from Macquarie Wealth Management.
  • Macquarie Atlas Roads, Sydney Airport, Transurban among a small number of rate-sensitive stocks “flashing strong valuation signals”
  • Macquarie Wealth says it’s favoring a lower growth, lower bond yield and lower A$ environment that is supportive for infrastructure and utilities over REITs
  • Commodity stocks including BHP Billiton, Fortescue, Rio Tinto will continue to be supported
  • Unexpected U.S. election result has strengthened case for RBA to cut rates in 2017, now expect 25bps cut in Feb and 25 bps cut in May
  • NOTE: Nov. 10, U.S. VOTE WRAP: Gold, Yield Stocks Seen Best ASX Plays on Trump
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
FMG AU (Fortescue Metals Group Ltd)
MQA AU (Macquarie Atlas Roads Group)
RIO LN (Rio Tinto PLC)
TCL AU (Transurban Group)

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