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How CSL and BHP helped drive the index above 7000

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Original article by William McInnes
The Australian Financial Review – Page: 27 : 17-Jan-20

The S&P/ASX 200 has taken just over two years to rise from 6,000 points to its new record high of 7,000. The index rose above 6,000 for the first time since the global financial crisis on 7 November 2017. BHP and CSL have been the biggest contributors to the S&P/ASX’s 200 rally since this time, adding 200 and 277 points respectively to the benchmark. Shares in CSL were trading at just $144.59 in November 2017, and the stock rose above $300 for the first time on 16 January.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX,{SPAC}BHP GROUP LIMITED – ASX BHP,{SPAC}CSL LIMITED – ASX CSL

Investors ready to turn savage

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Original article by Melissa Yeo
The Australian – Page: 21 : 15-Jan-20

The sharemarket rally has seen the S&P/ASX 200’s price-to-earnings multiple rise to a record high of 18 times. Mirrabooka Investments’ MD Mark Freeman says high valuations means that stocks which fail to meet expectations in the February reporting season will be punished by investors. Meanwhile, Mirrabooka has reported a 2019-20 interim profit of $4.4m, compared with $4.6m previously. Shareholders will receive a first-half dividend of $0.35 per share.

CORPORATES
MIRRABOOKA INVESTMENTS LIMITED – ASX MIR, STANDARD AND POOR’S ASX 200 INDEX

Conditions ideal for melt-up in world markets

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Original article by David Rogers
The Australian – Page: 18 : 10-Jan-20

The S&P/ASX 200 fell just shy of the record 6,893.7 points on 9 January, as tensions between the US and Iran eased. Meanwhile, the S&P 500 reached a new intra-day high. Peter Cecchini of Cantor Fitzgerald says the S&P 500 could potentially reach 3,300 points in the near-term, but he expects it to fall to 2,880 by the end of 2020. However, there is every indication that equities markets in developed countries will continue to rally in the near-term; the Australian market will receive a further boost if the cash rate is reduced in February.

CORPORATES
STANDARD AND POOR’S ASX 200 A-REIT INDEX, STANDARD AND POOR’S 500 INDEX, CANTOR FITZGERALD, RESERVE BANK OF AUSTRALIA

Investors ride out Iran’s missile attacks

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Original article by David Rogers
The Australian – Page: 13 & 18 : 9-Jan-20

The price of Brent crude oil has peaked at a four-month high in response to Iran’s missile attacks, while the spot gold price reached an 11-year high. The Australian dollar fell to a three-week low, but the local sharemarket closed only slightly down after clawing back initial losses. Kyle Rodda of IG Markets has downplayed the prospect of a US-Iran war, noting that this would not be in the strategic interests of either country. AMP Capital’s Shane Oliver warns that geopolitical risk will remain an issue in 2020.

CORPORATES
IG MARKETS LIMITED, AMP CAPITAL INVESTORS LIMITED, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

Equity boom helps ASX offset fall in IPOs

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Original article by Joyce Moullakis
The Australian – Page: 13 & 18 : 8-Jan-20

The ASX’s latest activity report shows that a total of $66.3bn in capital was raised on the Australian sharemarket in 2019, compared with $98.9bn in 2018. The number of IPOs fell from 132 to just 94 in 2019, amid volatility in the global IPO market and the cancellation of several major floats on the domestic market. Meanwhile, total trades in the ASX’s cash market were 25 per cent higher in the second half of 2019 compared with the previous corresponding period, while the total on-market value traded for the half-year was nine per cent higher than previously.

CORPORATES
ASX LIMITED – ASX ASX

ASX could hit 7000, but don’t get too excited

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Original article by Luke Housego
The Australian Financial Review – Page: 13 & 26 : 7-Jan-20

Market strategists are generally upbeat about the outlook for Australian equities in 2020, with the majority forecasting that the S&P/ASX 200 will reach 7,000 points. However, Chris Nicol of Morgan Stanley expects the benchmark to end the year at just 6,700 points, while Hasan Tevfik of MST Marquee has a year-end target of 7,100. Meanwhile, Damien Boey of Credit Suisse has forecast earnings-per-share growth of seven per cent.

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

Japan tipped to lead inbound M&A

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Original article by Lucas Baird
The Australian Financial Review – Page: 14 : 6-Jan-20

Alex Cartel of Deutsche Bank expects Japanese companies to pursue more takeover deals in Australia during 2020, following bids for Carlton & United Breweries and DuluxGroup in 2019. He notes that Japan has replaced China as a key driver of inbound mergers and acquisitions deals in the last several years. Simon Ranson of JP Morgan adds that offshore private equity firms are cashed up, noting that factors such as the low Australian dollar will make the nation attractive to them.

CORPORATES
DEUTSCHE BANK AG, JP MORGAN AUSTRALIA LIMITED, CARLTON AND UNITED BREWERIES, DULUXGROUP LIMITED, ASAHI GROUP, NIPPON PAINT, HERBERT SMITH FREEHILLS PTY LTD, BELLAMY’S AUSTRALIA LIMITED, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

ASIC next in line to be climate cop

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Original article by Michael Roddan
The Australian – Page: 1 & 4 : 24-Dec-19

The Australian Securities & Investments Commission will begin to legally enforce a requirement that listed companies must inform their shareholders and customers of any material risks from climate change. ASIC has not yet used this enforcement power under the Corporations Act 2001, but it intends to do so in 2020. Woolworths and Treasury Wine Estates are among the companies that have warned of the potential impact of climate change in their financial reports.

CORPORATES
AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, WOOLWORTHS GROUP LIMITED – ASX WOW, TREASURY WINE ESTATES LIMITED – ASX TWE, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, CITIGROUP PTY LTD, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, RESERVE BANK OF AUSTRALIA

ASX creates the Aussie Nasdaq index

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Original article by Paul Smith
The Australian Financial Review – Page: 14 & 16 : 16-Dec-19

Stock exchange operator ASX Limited will launch the S&P All Technology Index in February. It will be based on the Nasdaq Composite Index, and will offer an alternative listing option for technology companies whose capitalisation is too small for the US index. The ASX’s Max Cunningham says the new index should raise the profile of smaller technology companies. The existing S&P/ASX 200 Information Technology index covers just 13 stocks.

CORPORATES
ASX LIMITED – ASX ASX, STANDARD AND POOR’S FINANCIAL SERVICES LLC, NASDAQ COMPOSITE INDEX, STANDARD AND POOR’S ASX 200 INFORMATION TECHNOLOGY INDEX, WISETECH GLOBAL LIMITED – ASX WTC, APPEN LIMITED – ASX APX, XERO LIMITED – ASX XRO, COMPUTERSHARE LIMITED – ASX CPU, AFTERPAY TOUCH GROUP LIMITED – ASX APT, ALTIUM LIMITED – ASX ALU, LINK ADMINISTRATION HOLDINGS LIMITED – ASX LNK, NITRO SOFTWARE LIMITED – ASX NTO, TYRO PAYMENTS LIMITED – ASX TYR, LATITUDE FINANCIAL GROUP LIMITED, RETAIL ZOO PTY LTD, PROPERTYGURU LIMITED

$45bn ASX hit as trade war flares

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Original article by David Rogers
The Australian – Page: 17 & 25 : 4-Dec-19

The Australian sharemarket recorded its third-biggest one-day fall in the year to date on 3 December; it was driven by factors such as the interest rate outlook and the latest tariff moves in the US. However, Kyle Rodda of IG Markets says the local bourse was overdue for a pullback after the recent strong gains. Wall Street and European stocks also fell sharply, although Asian markets recorded more modest declines, while the Australian dollar reached a three-week high. Richard Coppleson of Bell Potter still expects the local market to reach a new record high by the end of 2019.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, IG MARKETS LIMITED, BELL POTTER SECURITIES LIMITED, RESERVE BANK OF AUSTRALIA