MQG rallied +0.8% yesterday ignoring a relatively heavy session for the Banking Sector with only CBA from the “Big 4” managing to close in positive territory. With no dividend due until May the only reason to buy MQG short-term is for capital gain and the risk/reward looks good on this front over the coming weeks. We hold a large 7% exposure to MQG in our Flagship Growth Portfolio, which we may trim above $180 looking to increase our exposure to one of the more vanilla banks as touched on in yesterday’s “Portfolio Positioning” report i.e. a net increase in bank exposure.
- We are initially targeting the $185 area for MQG, or another 6% higher.
MM remains long and bullish MQG at least short-term
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