It’s “do the opposite” day on the ASX as ANZ’s awful result triggers a buying frenzy in banks with CBA 2%, WBC 1.6%, NAB 2.5%, ANZ 3.6%, BOQ 1.3%, SUN 1.8%, BEN 1.3% and MQG 1.8%:
In truth this is not surprising given the extent of the ANZ selloff and buying the fact is a tried and tested reaction to selling the rumour. And we do know that the ASX loves a bank withdrawing from offshore investments, irrespective of what it may actually be coming home to. Perhaps there’s a long bet on an RBA cut this arvo too though wider markets are pricing the other way. MB remains of the view that this is not the bottom for banks.
Upside down world is also at work for big iron as Dalian drops like a stone at the open -4% which we all know is the perfect trigger to buy FMG which is up 1% as the price of its only product craters. BHP and RIO still occupy this dimension down -2.4% and -1.3% respectively:
Finally, big gas can feel righteously aggrieved as it actually falls in conjunction with its underlying business with oil down sharply WPL is -2%, OSH -2%, ORG -3.8%, STO -3.6% and LNG -2.1%:
Do the opposite!
