K64 Auxiliary Finance and Insurance Services

Year of shame puts floats on ice

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Original article by Jonathan Shapiro, Sarah Thompson
The Australian Financial Review – Page: 1 & 18 : 10-Dec-18

Hugh Dive of Atlas Funds Management says the financial market is approaching the end of its bull run, resulting in lower-quality IPOs. Sebastian Evans of NAOS says many companies have no good reason for listing on the Australian sharemarket, and he does not anticipate an improvement in the quality of IPOs in the near-term. Meanwhile, Andrew Stevens of UBS says investors are becoming more selective with regard to IPOs. Coronado Global Resources and Viva Energy are among the recent IPOs that have underperformed.

CORPORATES
ATLAS FUNDS MANAGEMENT PTY LTD, NAOS ASSET MANAGEMENT LIMITED, UBS HOLDINGS PTY LTD, CORONADO GLOBAL RESOURCES INCORPORATED – ASX CRN, VIVA ENERGY GROUP LIMITED – ASX VEA, REDCAPE HOTEL GROUP – ASX RDC, SMILES INCLUSIVE LIMITED – ASX SIL, EVANS DIXON LIMITED – ASX ED1, BLUE SKY ALTERNATIVE INVESTMENTS LIMITED – ASX BLA, PROSPA GROUP LIMITED, RAIZ INVEST LIMITED – ASX RZI, TRIMANTIUM GROWTHOPS LIMITED – ASX TGO, RCR TOMLINSON LIMITED – ASX RCR, LATITUDE FINANCIAL PARTNERS, WOODSIDE PETROLEUM LIMITED – ASX WPL, TRANSURBAN GROUP LIMITED – ASX TCL

Volatility can’t stop deal-hungry companies

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Original article by Joyce Moullakis
The Australian – Page: 21 & 25 : 7-Dec-18

Herbert Smith Freehills partner Tony Damian believes that 2019 will be a stronger year than 2018 for mergers and acquisitions, and John Pickhaver of Macquarie Capital is similarly optimistic. Herbert Smith Freehills predicts that superannuation funds will show a continued willingness to be directly involved in M&A deals in 2019, while healthcare, property and infrastructure are tipped to be popular sectors for M&A activity in 2019. Announced 2018 Australian M&A deals totalled $US155.9 billion ($215.4 billion) as of 5 December, according to Refinitiv.

CORPORATES
HERBERT SMITH FREEHILLS PTY LTD, MACQUARIE CAPITAL PTY LTD, GRAINCORP LIMITED – ASX GNC, HEALTHSCOPE LIMITED – ASX HSO, COLES GROUP LIMITED – ASX COL, WESFARMERS LIMITED – ASX WES, GREENCROSS LIMITED – ASX GXL, TPG TELECOM LIMITED – ASX TPM, VODAFONE AUSTRALIA LIMITED, AUSTRALIANSUPER PTY LTD, BGH CAPITAL PTY LTD, APA GROUP – ASX APA, CHEUNG KONG (HOLDINGS) LIMITED, BINGO INDUSTRIES LIMITED – ASX BIN, DIAL A DUMP INDUSTRIES PTY LTD, REFINITIV

Sharemarket in $30bn surge after thaw in US-China trade war

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Original article by David Rogers
The Australian – Page: 17 & 28 : 4-Dec-18

Materials and energy stocks posted the strongest gains on 3 December, with the Australian sharemarket rebounding from a big fall in the previous trading session. Investors responded positively to trade discussions between the US and China at the G20 meeting, as well as claims by President Donald Trump that China has agreed to remove tariffs on US cars. Meanwhile, the Australian dollar peaked at a four-month high of $US0.7384 in local trading.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, GROUP OF TWENTY (G-20), ROYAL BANK OF CANADA, BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, SOUTH32 LIMITED – ASX S32, OZ MINERALS LIMITED – ASX OZL, BLUESCOPE STEEL LIMITED – ASX BSL, BORAL LIMITED – ASX BLD, SANTOS LIMITED – ASX STO, BEACH ENERGY LIMITED – ASX BPT, ORIGIN ENERGY LIMITED – ASX ORG, SHANGHAI COMPOSITE INDEX, HANG SENG INDEX, NIKKEI 225 INDEX, KOSPI INDEX, FTSE 100 INDEX

AMP’s new CEO starts in the hot seat

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Original article by Misa Han
The Australian Financial Review – Page: 15 & 20 : 3-Dec-18

Francesco De Ferrari starts his first day as CEO of AMP on 3 December, having previously been head of Credit Suisse’s Asia-Pacific private banking business. De Ferrari says he is determined to make the most of the impetus provided by the banking royal commission to bring about change in the way that AMP does business. Hamish Carlisle from Merlon Capital says De Ferrari should give AMP shareholders the opportunity to vote on the proposed sale of the AMP Life division, as well as renegotiating the deal if possible.

CORPORATES
AMP LIMITED – ASX AMP, AMP LIFE LIMITED, CREDIT SUISSE AG, MERLON CAPITAL PARTNERS PTY LTD, SHAW AND PARTNERS LIMITED, ATLAS FUNDS MANAGEMENT PTY LTD, AUSTRALIAN SHAREHOLDERS’ ASSOCIATION

Reasons to be grateful amid rout: Citi strategist

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Original article by David Rogers
The Australian – Page: 27 : 22-Nov-18

The Australian sharemarket shed 6.1 per cent in October, while bearish sentiment in the US saw the S&P 500 fall seven per cent. However, Tobias Levkovich of Citigroup is upbeat about the outlook for US equities in the year ahead, noting that the "sentiment metric" indicates a high probability that the S&P 500 will be higher in 12 months’ time. David Kostin of Goldman Sachs also expects the S&P 500 to rise over the next year.

CORPORATES
STANDARD AND POOR’S 500 INDEX, CITIGROUP INCORPORATED, THE GOLDMAN SACHS GROUP INCORPORATED, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, GROUP OF TWENTY (G-20)

Battered bourse ready for a recovery

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Original article by David Rogers
The Australian – Page: 29 : 16-Nov-18

The S&P/ASX 200 reached an intra-day low of 5,686.8 points on 15 November, before recovering to post a modest gain for the session. The recent sell-off means that with some exceptions, the Australian sharemarket now offers quite good value. The market’s forward price-earnings ratio is now slightly above its long-term average, while the dividend yield of five per cent is at its highest level in almost three years. Meanwhile, the benchmark index has recorded an average gain of 2.1 per cent in December over the last five years.

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

Blue-chip beating adds to rout

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Original article by David Rogers
The Australian – Page: 17 & 27 : 15-Nov-18

The Australian sharemarket has now shed more than 10 per cent since it peaked at a 10-year high in August. The 3.5 per cent decline in the last two trading sessions followed a rebound in recent weeks, after the local market fell 6.1 per cent in October. Blue-chip stocks in particular have been heavily sold down, and traders suggest that offshore selling has been a major driver of the pullback. Richard Coppleson of Bell Potter says this could potentially result in a rebound in the next week or so.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, BELL POTTER SECURITIES LIMITED, TELSTRA CORPORATION LIMITED – ASX TLS, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESFARMERS LIMITED – ASX WES, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, WOODSIDE PETROLEUM LIMITED – ASX WPL, SOUTH32 LIMITED – ASX S32, CSL LIMITED – ASX CSL, FORTESCUE METALS GROUP LIMITED – ASX FMG, SANTOS LIMITED – ASX STO, COCHLEAR LIMITED – ASX COH, SEVEN WEST MEDIA LIMITED – ASX SWM, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, PACT GROUP HOLDINGS LIMITED – ASX PGH, RAMSAY HEALTH CARE LIMITED – ASX RHC, BINGO INDUSTRIES LIMITED – ASX BIN, AUSNET SERVICES LIMITED – ASX AST, COMPUTERSHARE LIMITED – ASX CPU, MEDIBANK PRIVATE LIMITED – ASX MPL, SHANGHAI COMPOSITE INDEX, HANG SENG INDEX, NIKKEI 225 INDEX, KOSPI INDEX, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, ORGANISATION OF PETROLEUM EXPORTING COUNTRIES, AUSTRALIAN LABOR PARTY, CREDIT SUISSE (AUSTRALIA) LIMITED

Fund managers count the cost of Red October meltdown

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Original article by Melissa Yeo
The Australian – Page: 28 : 14-Nov-18

Platinum Investment Management CEO Andrew Clifford notes that October 2018 was the most challenging month for global markets since February 2009. The Australian sharemarket lost 5.4 per cent during October, extending its losses since an August peak to more than 10 per cent. The Platinum Global Fund and Monash Capital’s Absolute Investment Fund posted losses of 5.9 per cent and 5.69 per cent respectively, although hedge fund VGI Partners posted a modest gain of 0.8 per cent.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, PLATINUM INVESTMENT HOLDING PTE LTD, PLATINUM GLOBAL FUND, MONASH CAPITAL PTY LTD, MONASH ABSOLUTE INVESTMENT FUND, VGI PARTNERS PTY LTD, GRYPHON CAPITAL INCOME TRUST – ASX GCI, L1 LONG SHORT FUND LIMITED – ASX LSF, OPHIR ASSET MANAGEMENT PTY LTD, CONTANGO INCOME GENERATOR LIMITED – ASX CIE, K2 GLOBAL EQUITIES FUND, WCM GLOBAL GROWTH LIMITED – ASX WQG, CARSALES.COM LIMITED – ASX CAR, VIVA ENERGY GROUP LIMITED – ASX VEA, THE STAR ENTERTAINMENT GROUP LIMITED – ASX SGR, GWA GROUP LIMITED – ASX GWA, PERPETUAL LIMITED – ASX PPT, VIRTUS HEALTH LIMITED – ASX VRT, AMAZON.COM INCORPORATED, CORPORATE TRAVEL MANAGEMENT LIMITED – ASX CTD, BLOOMBERG LP, MSCI WORLD INDEX

Local rally defies Wall Street blues to signal correction may be over

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Original article by David Rogers
The Australian – Page: 28 : 31-Oct-18

The Australian sharemarket has posted strong gains in the last two trading sessions, reducing its loss for the month to 6.5 per cent. The local bourse has recovered from its recent 18-month low of 5,624 points, having peaked at 6,373 points in late August. Meanwhile, Tony Brennan of Citigroup notes that growth stocks were the biggest underperformers in the Australian market’s recent sell-off, although he adds that these stocks’ price-earnings multiples remain high.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, CITIGROUP PTY LTD, SHANGHAI COMPOSITE INDEX, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, NASDAQ COMPOSITE INDEX, STANDARD AND POOR’S 500 INDEX, DOW JONES INDUSTRIAL AVERAGE INDEX, MSCI WORLD INDEX, MSCI EMERGING MARKETS INDEX

Why there is a silver lining in bear markets

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Original article by David Rogers
The Australian – Page: 26 : 24-Oct-18

Global sharemarkets fell on 23 October, and Wall Street is one of the few markets that are still in positive territory for the year. Tobias Levkovich, the chief US equity strategist at Citigroup, notes that investors have become more focused on risk following the recent sell-off on Wall Street. He says the outlook for the US market remains encouraging until at least the middle of 2019, arguing that a major fall on Wall Street would require US corporate profits to fall sharply. He adds that US companies’ profit margins remain lower than in 2009.

CORPORATES
CITIGROUP INCORPORATED, STANDARD AND POOR’S ASX 200 INDEX, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, JP MORGAN AND COMPANY INCORPORATED