K64 Auxiliary Finance and Insurance Services

Brace for more volatility, warns ASX chief

roymorgansocial Leave a comment

Original article by Glenda Korporaal
The Australian – Page: 21 : 16-Feb-18

Stock market operator ASX Limited has posted a 2018-17 interim net profit of $A230.5m, which is 5.1 per cent higher than previously. The half-year was characterised by a low level of market volatility, and ASX CEO Dominic Stevens says the volatility experienced so far in 2018 is likely to persist for 3-4 months. He adds that a certain amount of volatility can boost the earnings of stock exchange and futures market operators like the ASX, although he cautions that too much volatility can affect the IPO market.

CORPORATES
ASX LIMITED – ASX ASX

Share indexes tipped to test recent lows

roymorgansocial Leave a comment

Original article by David Rogers
The Australian – Page: 27 : 15-Feb-18

Bank of America Merrill Lynch’s Bull & Bear Indicator suggests that global equities face a further pullback and could fall to around the level seen during the recent sharemarket rout. Meanwhile, BAML’s latest survey of fund managers shows that respondents’ average cash balance has risen by 0.3 per cent to 4.7 per cent, while equity allocation has fallen by 12 per cent and bond allocation has fallen to the lowest level in two decades.

CORPORATES
BANK OF AMERICA NA, MERRILL LYNCH AND COMPANY INCORPORATED, MSCI ALL COUNTRY WORLD INDEX, UNITED STATES. FEDERAL RESERVE BOARD, WESTPAC BANKING CORPORATION – ASX WBC

Bargain hunters happy to take the risks

roymorgansocial Leave a comment

Original article by David Rogers
The Australian – Page: 30 : 9-Feb-18

Australian investors returned to the sharemarket on 8 February, seeking buying opportunities among stocks that had been heavily sold down in the recent sharemarket rout. Blue-chip stocks in particular attracted buying activity. However, investors should be mindful that financial market volatility can persist for some time, and the pace at which the US Federal Reserve tightens monetary policy will be a key factor in the outlook for equities.

CORPORATES
UNITED STATES. FEDERAL RESERVE BOARD, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, MACQUARIE GROUP LIMITED – ASX MQG, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, CHICAGO BOARD OPTIONS EXCHANGE VOLATILITY INDEX, CREDIT SUISSE AG, STANDARD AND POOR’S 500 INDEX, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, UNITED STATES. DEPT OF THE TREASURY, LPL FINANCIAL LLC

Shaky markets signal more share pain on way

roymorgansocial Leave a comment

Original article by David Rogers
The Australian – Page: 17 & 27 : 8-Feb-18

Futures pricing suggests that the US sharemarket will experience further volatility, despite a rebound on 7 February. The bearish investor sentiment of recent days has prompted renewed support for "safe-haven" assets, including US government bonds and currencies such as the yen. Meanwhile, the Chicago Board Options Exchange’s Volatility Index briefly rose above 50 per cent on 7 February, compared with just 11.5 per cent a week earlier. However, Jeremy Lawson of Aberdeen Standard Investments does not expect global sharemarket volatility to be sustained.

CORPORATES
CHICAGO BOARD OPTIONS EXCHANGE VOLATILITY INDEX, ABERDEEN STANDARD INVESTMENTS, CREDIT SUISSE AG, BELL ASSET MANAGEMENT LIMITED – ASX BLM, STANDARD AND POOR’S 500 INDEX, DOW JONES INDUSTRIAL AVERAGE INDEX, STANDARD AND POOR’S ASX 200 INDEX, FTSE 100 INDEX, NIKKEI 225 INDEX, SHANGHAI COMPOSITE INDEX, HANG SENG INDEX

$30bn shares wipeout prompts fears bull run at an end

roymorgansocial Leave a comment

Original article by David Rogers
The Australian – Page: 1 : 6-Feb-18

Richard Coppleson of Bell Potter says the global equities market sell-off will create excellent buying opportunities when it has run its course. Futures pricing suggests that Wall Street will shed a further 0.6 per cent when trading resumes, after the Dow Jones Industrial Average fell 2.5 per cent on 2 February. The Australian bourse is likely to follow its lead, after shedding 1.6 per cent on 5 February.

CORPORATES
BELL POTTER SECURITIES LIMITED, STANDARD AND POOR’S ASX 200 INDEX, DOW JONES INDUSTRIAL AVERAGE INDEX, CSI 300 INDEX, BANK OF AMERICA CORPORATION, MERRILL LYNCH AND COMPANY INCORPORATED, STANDARD AND POOR’S 500 INDEX, WESFARMERS LIMITED – ASX WES, TARGET AUSTRALIA PTY LTD, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, PENGANA CAPITAL GROUP LIMITED – ASX PCG, RESERVE BANK OF AUSTRALIA

Investors follow Future Fund to lift share exposure

roymorgansocial Leave a comment

Original article by James Kirby
The Australian – Page: 32 : 2-Feb-18

A report from Investment Trends shows that in early 2017 the average investor expected a return of just 1-5 per cent from Australian equities for the calendar year, but the ASX achieved a full-year return of 11.8 per cent. Investment Trends’ King Loong Choi says the firm’s annual survey shows that the proportion of investors whose main goal is to maximise capital growth has risen from 18 per cent to 25 per cent in 2018. Choi adds that retail investors who increase their exposure to equities in 2018 may choose to do so via investment vehicles such as exchange-traded funds rather than directly buying shares.

CORPORATES
INVESTMENT TRENDS PTY LTD, STANDARD AND POOR’S ASX 200 INDEX, JP MORGAN AUSTRALIA LIMITED, AUSTRALIA. FUTURE FUND MANAGEMENT AGENCY

Smaller end of town to buoy ASX

roymorgansocial Leave a comment

Original article by Glenda Korporaal
The Australian – Page: 25 : 31-Jan-18

A report by HLB Mann Judd notes that 37 companies have plans to list on the Australian sharemarket at present, compared with 23 at the same time in 2017. Third Party Technologies heads the list of prospective floats, with plans to raise $A123m from investors. HLB Mann Judd expects small and medium-sized companies to continue to dominate the IPO market in 2018. There were no IPOs worth more than $A1bn in 2017, and no IPOs of this size are currently in the works.

CORPORATES
HLB MANN JUDD, THIRD PARTY TECHNOLOGIES INCORPORATED – ASX 3PT, INDIA FUND LIMITED – ASX INF, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, COLONIAL FIRST STATE GROUP LIMITED, INGHAMS GROUP LIMITED – ASX ING, WESFARMERS LIMITED – ASX WES, OFFICEWORKS SUPERSTORES PTY LTD, ARCHER CAPITAL PTY LTD, CRAVEABLE BRANDS LIMITED, OPORTO PTY LTD, RED ROOSTER FOODS, ZIP INDUSTRIES AUSTRALIA, QUADRANT PRIVATE EQUITY PTY LTD, CHAMP PRIVATE EQUITY PTY LTD, ACCOLADE WINES LIMITED

Meet the Bond who helped return 74 per cent in 2017

roymorgansocial Leave a comment

Original article by Vesna Poljak
The Australian Financial Review – Page: 13 & 27 : 30-Jan-18

Terra Capital founder Jeremy Bond is upbeat about the outlook for equities in 2018, particularly the resources sector. The firm’s natural resources fund achieved a return of 74 per cent in 2017, benefiting from rising demand for raw materials used in electric car and storage batteries, such as lithium and cobalt. However, Bond notes that the rally in the resources sector is broad-based and encompasses most commodities.

CORPORATES
TERRA CAPITAL PTY LTD, TERRA CAPITAL NATURAL RESOURCE FUND PTY LTD, TAWANA RESOURCES NL – ASX TAW, FIRST COBALT CORPORATION – ASX FCC, ECOBALT SOLUTIONS INCORPORATED, OKLO RESOURCES LIMITED – ASX OKU, CHAMPION IRON LIMITED – ASX CIA, CLEVELAND-CLIFFS AUSTRALIA PTY LTD, RIVERSDALE MINING LIMITED, MERCER INVESTMENTS PTY LTD, BENNELONG CONCENTRATED AUSTRALIAN EQUITIES FUND, TRIBECA GLOBAL NATURAL RESOURCES FUND

Firms sidestep AGM protest votes

roymorgansocial Leave a comment

Original article by Andrew White
The Australian – Page: 19 : 30-Jan-18

The Australian Securities & Investments Commission has released the results of its review of the latest AGM season. ASIC found that there was a decline in the number of "first strikes" issued against company boards over their remuneration reports, although here was an increase in the number of votes against individual directors. Shareholder-generated resolutions relating to climate change and human rights were tabled at eight AGMs, but attracted an average of just six per cent of "for" votes.

CORPORATES
AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE

Citi upbeat on stocks amid rising resources

roymorgansocial Leave a comment

Original article by David Rogers
The Australian – Page: 28 : 30-Jan-18

The general consensus of analysts is for the S&P/ASX 200 to be trading at around 6,250 points at the end of 2018. However, Citigroup has upgraded its year-end forecast from 6,400 points to 6,600. Tony Brennan of Citigroup notes that there is the potential for further upside if the recent rise in commodity prices is sustained. The S&P/ASX 200 has gained 0.2 per cent so far in 2018, compared with a gain of 7.5 per cent for the S&P 500.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, CITIGROUP PTY LTD, STANDARD AND POOR’S 500 INDEX, MSCI ALL COUNTRY WORLD INDEX, WOOLWORTHS GROUP LIMITED – ASX WOW, TELSTRA CORPORATION LIMITED – ASX TLS, QBE INSURANCE GROUP LIMITED – ASX QBE, LEND LEASE GROUP LIMITED – ASX LLC