K64 Auxiliary Finance and Insurance Services

What’s in store for listings in 2018

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Original article by James Frost
The Australian Financial Review – Page: 27 : 25-Jul-18

Just 39 companies listed on the Australian sharemarket during the first half of 2018, compared with 57 during the corresponding period in 2017. However, Marcus Ohm of HLB Mann Judd notes that IPO activity is traditionally higher in the second half of a calendar year. IPOs collectively raised $2.5bn in the first half of 2018, although this was dominated by the L1 Long Short Fund. The materials sector is poised to account for a significant proportion of IPOs in the second half, as it did in the first half.

CORPORATES
HLB MANN JUDD, L1 LONG SHORT FUND LIMITED – ASX LSF, LATITUDE FINANCIAL SERVICES LIMITED

Strong US earnings growth tipped but it’s unlikely to last

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Original article by Timothy Moore
The Australian Financial Review – Page: 20 : 16-Jul-18

Expectations of earnings growth has been a major contributor to the rise of the S&P 500, which has gained 8.5 per cent since its February low. Market strategist Ed Yardeni notes that US corporate tax cuts in late 2017 have been the major driver of earnings growth. Analysts forecast earnings growth of 22.3 per cent in 2018 and 9.9 per cent in 2019. However, some analysts warn that earnings growth could come under pressure in the second half of 2018, due to factors such as the trade war with China and the rising US dollar.

CORPORATES
STANDARD AND POOR’S 500 INDEX, YARDENI RESEARCH INCORPORATED, FUNDSTRAT GLOBAL ADVISORS LLC, BLACKROCK INCORPORATED, LPL FINANCIAL LLC, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, JP MORGAN CHASE AND COMPANY, CITIGROUP INCORPORATED, WELLS FARGO AND COMPANY, FACEBOOK INCORPORATED, AMAZON.COM INCORPORATED, APPLE INCORPORATED, NETFLIX INCORPORATED, GOOGLE INCORPORATED, ALPHABET INCORPORATED, MICROSOFT CORPORATION, BHP BILLITON LIMITED – ASX BHP, RBC CAPITAL MARKETS, FACEBOOK INCORPORATED, EXPEDIA INCORPORATED, BANK OF MONTREAL

Exchange-traded funds set for take-off

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Original article by Glenda Korporaal
The Australian – Page: 19 : 12-Jul-18

ETF Securities founder Graham Tuckwell is upbeat about the outlook for Australia’s exchange-traded fund market, which he expects to grow significantly in the next five years. Tuckwell says Australians have been slow to embrace ETFs while financial advisers have instead favoured actively managed funds, as they receive a commission for recommending such products to clients. He adds that active fund managers often underperform the market after their fees are taken into account.

CORPORATES
ETF SECURITIES LIMITED

Dream run may be over as credit faces headwinds

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Original article by David Rogers
The Australian – Page: 28 : 11-Jul-18

The S&P/ASX 200 failed to reach a new 10-year high on 10 July, with the banking sector leading the market lower. Jonathan Mott of UBS notes that the Australian market had significantly outperformed its global peers between early April and early July, although this had followed a sharp fall in the March quarter. Meanwhile, a number of factors may weigh on the local bourse in the lead-up to the August reporting season, including the potential for the US-China trade war to escalate.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, UBS HOLDINGS PTY LTD, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, RESERVE BANK OF AUSTRALIA, TELSTRA CORPORATION LIMITED – ASX TLS, MACQUARIE GROUP LIMITED – ASX MQG, BANK OF QUEENSLAND LIMITED – ASX BOQ, SUNCORP BANK, AMP BANK LIMITED, PEPPER GROUP LIMITED, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

AMP warns planners on risky advice

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Original article by Alice Uribe
The Australian Financial Review – Page: 1 & 4 : 10-Jul-18

AMP appears reluctant to retain self-employed financial planners under its operating licence, as it continues to be impacted by the "fee for no service" scandal. AMP is understood to have given some self-employed planners just months to find a new operating licence. Meanwhile, the Australian Securities & Investments Commission has confirmed that plans to continue its investigation of AMP over the fees scandal.

CORPORATES
AMP LIMITED – ASX AMP, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, HILLROSS FINANCIAL SERVICES LIMITED, IPAC FINANCIAL CARE LIMITED, CHARTER FINANCIAL PLANNING LIMITED, AUSTRALIA. DIRECTOR OF PUBLIC PROSECUTIONS, ADVISER SOLUTIONS PTY LTD, CONNECT FINANCIAL SERVICES BROKERS

Strategists offer their wisdom on ASX outlook for 2018-19

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Original article by Sarah Turner
The Australian Financial Review – Page: 13 : 2-Jul-18

The S&P/ASX 200 gained 8.6 per cent during 2017-18, ending the financial year at 6,194 points. The energy sector rose 37 per cent and the material sector added 24 per cent. Equities strategists are generally upbeat about the outlook for commodity prices and the resources sector in 2018-19, although some are bearish about bank stocks. Meanwhile, Chris Nicol of Morgan Stanley expects the S&P/ASX 200 to be trading at 5,950 points at the end of 2018-19, while Tony Brennan of Citigroup has a target of 6,650 points.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, MORGAN STANLEY AUSTRALIA LIMITED, CITIGROUP PTY LTD, JP MORGAN AUSTRALIA LIMITED, GOLDMAN SACHS AUSTRALIA PTY LTD, TELSTRA CORPORATION LIMITED – ASX TLS, CSL LIMITED – ASX CSL, TREASURY WINE ESTATES LIMITED – ASX TWE, ARISTOCRAT LEISURE LIMITED – ASX ALL, THE A2 MILK COMPANY LIMITED – ASX A2M, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Banks to stick with advice charges

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Original article by Anthony Klan
The Australian – Page: 8 : 29-Jun-18

Westpac-owned BT recently stated that it will abolish so-called "grandfathered" advice charges for customers with legacy investment products. AMP, National Australia Bank, ANZ, and the Commonwealth Bank have indicated that they will still impose the charges. The Productivity Commission noted in a recent report that around 630,000 superannuation accounts are subject to trailing commissions, with such charges having a detrimental impact on their balances.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, BT FINANCIAL GROUP PTY LTD, AMP LIMITED – ASX AMP, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA. PRODUCTIVITY COMMISSION

ASX sails to 8pc return with BHP leading the pack

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Original article by Vesna Poljak
The Australian Financial Review – Page: 1 & 29 : 29-Jun-18

Australia’s benchmark S&P/ASX 200 Index has posted a gain of 8.6 per cent prior to dividends so far in 2017-18, after rising 9.3 per cent in 2016-17. BHP Billiton, CSL and Macquarie Group have been the biggest contributors to the local market’s gains in the current financial year. Citigroup has forecast that the ASX 200 will rise to 6,500 points in 2018-19, while the consensus of analysts is for earnings-per-share growth of eight per cent in 2018-19.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, BHP BILLITON LIMITED – ASX BHP, CSL LIMITED – ASX CSL, MACQUARIE GROUP LIMITED – ASX MQG, CITIGROUP PTY LTD, TELSTRA CORPORATION LIMITED – ASX TLS, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AMP LIMITED – ASX AMP, RESERVE BANK OF AUSTRALIA, XERO LIMITED – ASX XRO, WISETECH GLOBAL LIMITED – ASX WTC, AFTERPAY TOUCH GROUP LIMITED – ASX APT, ALTIUM LIMITED – ASX ALU, APPEN LIMITED – ASX APX, BLOOMBERG LP, STANDARD AND POOR’S 500 INDEX, WILSON ASSET MANAGEMENT, ATLAS FUNDS MANAGEMENT PTY LTD, BIS OXFORD ECONOMICS PTY LTD, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY

Remarkable rebound as June changes its tune

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Original article by David Rogers
The Australian – Page: 29 : 22-Jun-18

Australia’s S&P/ASX 200 has gained nearly three per cent since the start of 2018 and nine per cent so far in 2017-18. However, the market typically posts strong gains in the second half of June, after the tax-loss selling and profit warning season has run its course and bank stocks rebound from initial falls after trading ex-dividend. Meanwhile, bank dividend payments traditionally boost the local market in July, although factors such as the potential for a US-China trade war remain a risk to Australian equities.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, AMP CAPITAL INVESTORS LIMITED, CITIGROUP PTY LTD, BLOOMBERG LP, CSL LIMITED – ASX CSL, ARISTOCRAT LEISURE LIMITED – ASX ALL, TREASURY WINE ESTATES LIMITED – ASX TWE, QANTAS AIRWAYS LIMITED – ASX QAN, MACQUARIE GROUP LIMITED – ASX MQG, TELSTRA CORPORATION LIMITED – ASX TLS, RAMSAY HEALTH CARE LIMITED – ASX RHC, UNITED STATES. DEPT OF THE TREASURY

Investors run for cover amid trade tension

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Original article by David Rogers
The Australian – Page: 19 & 28 : 20-Jun-18

The Australian dollar has fallen to a 13-month low amid renewed concerns about a US-China trade war. The local bourse eased slightly on 19 June but Asian markets fell sharply, with China’s Shanghai Composite Index and Shenzhen Composite Index shedding 3.8 per cent and 5.7 per cent respectively. A move by US President Donald Trump to look at imposing tariffs on more Chinese products prompted China to warn that it would respond in kind, and Louis Kuijis of Oxford Economics says such a move would affect economic growth in China, the US and globally.

CORPORATES
SHANGHAI COMPOSITE INDEX, SHENZHEN COMPOSITE INDEX, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, OXFORD ECONOMICS LIMITED, OANDA AUSTRALIA PTY LTD, HANG SENG INDEX, KOSPI INDEX, NIKKEI 225 INDEX, NASDAQ, RESERVE BANK OF AUSTRALIA, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA