Giant IOOF to lift its game after MLC buy

Original article by Cliona O’Dowd
The Australian – Page: 17 & 19 : 1-Sep-20

IOOF Holdings has reported a 2019-20 underlying net profit of $128.8m, which is 35 per cent lower than previously, with revenue up 10 per cent at $1.17bn. Meanwhile, IOOF will boast $510bn worth of funds under management following its deal to acquire MLC, making it Australia’s largest retail wealth manager. CEO Renato Mota says the $1.4bn deal is ‘transformational’ for both IOOF and the broader wealth management industry. The deal with National Australia Bank will be partially funded via a $1.04bn capital raising.

CORPORATES
IOOF HOLDINGS LIMITED – ASX IFL, MLC LIMITED, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

AMP to reveal damning report

Original article by Joyce Moullakis
The Australian – Page: 15 & 19 : 20-Aug-20

Wealth manager AMP has advised that it will release the report of an independent investigation into the sexual harassment allegations against Boe Pahari. The investigation was undertaken in 2017, and the lawyers representing complainant Julia Szlakowski say that she never received a copy of the full report of the investigation. Pahari was appointed as CEO of AMP Capital in July. Australian Council of Superannuation Investors CEO Louise Davidson contends that Pahari’s position is untenable.

CORPORATES
AMP LIMITED – ASX AMP, AMP CAPITAL INVESTORS LIMITED, AUSTRALIAN COUNCIL OF SUPERANNUATION INVESTORS INCORPORATED

Results so far are a shot in the arm for investors

Original article by David Rogers
The Australian – Page: 23 : 20-Aug-20

The S&P/ASX 200 has gained two per cent since the start of the August reporting season. Investors have responded positively to earning results, dividend payouts and outlook guidance, as well as a rally in the S&P 500 and the continued strength of commodity prices. Indeed, dividend announcements were a common factor among many stocks that outperformed on 19 August; likewise, a lack of dividend payments contributed to some stocks being sold down.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S 500 INDEX

AMP culture rife with bullying: staff

Original article by Michael Roddan
The Australian Financial Review – Page: 13 & 17 : 27-Jul-20

AMP has the worst rating of any major financial services company in terms of being a place to work, according to workplace rating website Glassdoor. AMP has been in the headlines as a result of staff uproar over the promotion of Boe Pahari to the role of AMP Capital CEO despite having received a $500,000 penalty after the firm settled a sexual harassment claim against him by a female subordinate in 2017. Comments made on Glassdoor by current and former AMP employees suggest its workforce culture is ‘rife’ with bullying and intimidation by senior managers.

CORPORATES
AMP LIMITED – ASX AMP, GLASSDOOR INCORPORATED, AMP CAPITAL INVESTORS LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG, CHALLENGER LIMITED – ASX CGF, SUNCORP GROUP LIMITED – ASX SUN, BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, BANK OF QUEENSLAND LIMITED – ASX BOQ

Investors brace for harder hit from second wave

Original article by David Rogers
The Australian – Page: 20 : 9-Jul-20

The S&P/ASX 200 has shed 3.2 per in the last three trading sessions, while the Australian dollar has retreated ahead of Melbourne going into lockdown. Damien Boey of Credit Suisse says policymakers may have underestimated the economic cost of the lockdown, which may be closer to $26bn than the $6bn that has been forecast. He adds that the new lockdown may the "straw that broke the camel’s back" for many small businesses that were already struggling. Analysts also expect the new coronavirus outbreak in Victoria to weigh on corporate earnings and dividend payouts.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, CREDIT SUISSE (AUSTRALIA) LIMITED

Capital raising rush far from over

Original article by Joyce Moullakis
The Australian – Page: 13 & 19 : 1-Jul-20

Data from Refinitiv shows that Australian-listed companies raised $US14.9bn ($21.8bn) via the issuance of new shares in the June quarter, as they sought to boost their balance sheets in response to the coronavirus pandemic. This is the highest quarterly total since late 2010, while some $US18.8bn worth of new shares were issued in the first half of calendar 2020. Fund managers generally expect the capital raisings momentum to be maintained in the second half. Meanwhile, the total value of mergers and acquisitions fell to $US24.9bn in the first half of 2020, compared with $US48.2bn for the first half of 2019.

CORPORATES
REFINITIV AUSTRALIA PTY LTD

Greed, fear: ASX wraps worst year since 2012

Original article by William McInnes
The Australian Financial Review – Page: 12 & 24 : 1-Jul-20

The Australian sharemarket shed 10.9 per cent during 2019-20, in a turbulent financial year for investors. The local bourse reached a record high in February, before the coronavirus pandemic prompted a savage sell-off. However, a number of stocks performed well during 2019-20, with Afterpay, Fisher & Paykel Healthcare and Mesoblast all gaining more than 100 per cent. Fund managers warn that the August reporting season will be a key test for the sharemarket’s recent rebound.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, AFTERPAY LIMITED – ASX APT, FISHER AND PAYKEL HEALTHCARE CORPORATION LIMITED – ASX FPH, MESOBLAST LIMITED – ASX MSB

Investors need to mind the looming earnings gap

Original article by Luke Housego
The Australian Financial Review – Page: 29 : 16-Jun-20

The coronavirus pandemic is set to weigh on the financial results of Australian-listed companies, with Morgan Stanley noting that the consensus forecast is for earnings to fall by 15.2 per cent in 2020. The average 12-month forward price-earnings ratios for the S&P/ASX 200 was 18.1 times before the recent sell-off, compared with a long-term average of around 14 times. Jason Steed of Morgan Stanley says a relatively small shift in earnings expectations when P/E ratios are high can prompt a sharp fall in share prices.

CORPORATES
MORGAN STANLEY AUSTRALIA LIMITED, STANDARD AND POOR’S ASX 200 INDEX

What crisis? Bull market rages on as beaten-down banks lead value charge

Original article by David Rogers
The Australian – Page: 13 & 19 : 5-Jun-20

The S&P/ASX 200 has gained more than 30 per cent since reaching a seven-year low of 4,402.5 points on 23 March. Morgan Stanley estimates that the benchmark index is currently trading on a record 12-month forward price-to-earnings ratio of about 19.55 times. While there has been strong support for some defensive growth stocks, value stocks continue to outperform; Chris Nicol of Morgan Stanley says there will be further upside for value stocks if there is a V-shaped economic recovery.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, MORGAN STANLEY AUSTRALIA LIMITED

Investors should brace for another sharemarket sell-off, warn analysts

Original article by Euan Black
The New Daily – Page: Online : 12-May-20

The S&P/ASX200 has gained more than 20 per cent since 23 March, rebounding from a major sell-off in response to the coronavirus pandemic. Glenn Leese of TradingView cautions that the local bourse may retreat again; he notes that sharemarkets often rally after a big fall, only to incur an even larger slump. He adds that sharemarket crashes and corrections normally occur in a series of three waves, and the local market is currently experiencing its second wave.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, TRADINGVIEW