K64 Auxiliary Finance and Insurance Services

Institutional investors buy back into rally

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Original article by David Rogers
The Australian – Page: 27 : 31-Oct-17

Australia’s S&P/ASX 200 index has gained 4.3 per cent so far in October, putting the local bourse on track for its best month since July 2016. Tony Brennan of Citigroup still expects the benchmark index to reach the 6,000-point level by the end of 2017. However, the market may face a number of headwinds. The S&P/ASX 200 Bank Index has risen by 3.5 per cent in October, but November is traditionally a bearish month for the sector. On the other hand, the resources sector is benefiting from the continued strength of commodity prices, while the growing prospect of tax cuts in the US should boost the earnings of companies with significant exposure to the US.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, CITIGROUP PTY LTD, STANDARD AND POOR’S ASX 200 BANKS INDEX

The most common question on Wall Street: when will rally end?

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Original article by Philip Baker
The Australian Financial Review – Page: 31 : 27-Oct-17

Australia’s benchmark S&P/ASX 200 Index has gained four per cent so far in 2017, and it has not ended a month in positive territory since April. Meanwhile, the major US indices have finished in the black every month except for March, and the S&P 500 has gained nearly 15 per cent in the year to date. Wall Street’s sustained rally has prompted speculation as to when it will end, but there are strong indications that the current bull run will extend beyond seven months.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S 500 INDEX, DOW JONES INDUSTRIAL AVERAGE INDEX, NASDAQ COMPOSITE INDEX, CLIME INVESTMENT MANAGEMENT LIMITED – ASX CIW, CITIGROUP INCORPORATED, EPFR GLOBAL

Brexit shut one door, opened another for Auscap

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Original article by Glenda Korporaal
The Australian – Page: 17 & 21 : 24-Oct-17

Auscap Asset Management, which was founded by Tim Carleton and Matthew Parker in 2012, boasts about $A450m worth of funds under management. Carleton says Auscap saw Britain’s vote to leave the European Union as an opportunity to buy several Australian stocks with exposure to the UK at a healthy discount to their pre-Brexit share price. Likewise, the firm capitalised on bearish sentiment toward retail stocks following the Federal Government’s 2014 Budget to buy oversold stocks in the sector.

CORPORATES
AUSCAP ASSET MANAGEMENT PTY LTD, GOLDMAN SACHS AUSTRALIA PTY LTD, ANSELL LIMITED – ASX ANN, JB HI-FI LIMITED – ASX JBH, CALEDONIA INVESTMENTS LIMITED, COTA CAPITAL, THORNEY INVESTMENT GROUP AUSTRALIA PTY LTD, COLONIAL FIRST STATE GROUP LIMITED, BLACK DOG INSTITUTE, VICTOR CHANG CARDIAC RESEARCH INSTITUTE LIMITED, MULTIPLE SCLEROSIS RESEARCH AUSTRALIA LIMITED, JUVENILE DIABETES RESEARCH FOUNDATION INTERNATIONAL

ASX’s $100b rally could be far from over, analysts predict

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Original article by Jessica Sier, Patrick Commins
The Australian Financial Review – Page: 13 & 27 : 19-Oct-17

The Australian sharemarket had been range-bound since May, but a rally in the last nine trading sessions has increased its capitalisation by about $A100bn. JP Morgan’s Jason Steed says the near-term outlook for the local bourse will depend to a large extent on financial and mining stocks, which dominate the market. However, Steed adds that investors are looking for greater political certainty, particularly with regard to issues such as energy policy and regulation of the banking sector.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, JP MORGAN AUSTRALIA LIMITED, CREDIT SUISSE (AUSTRALIA) LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, TOKYO STOCK PRICE INDEX, DEUTSCHER AKTIEN INDEX

‘Market vulnerable to 1987-style crash’

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Original article by Glenda Korporaal
The Australian – Page: 19 & 23 : 16-Oct-17

With the 30th anniversary of the Black Monday stock market crash of October 1987 approaching, experts warn that there is the potential for another sharemarket rout. Former ASX chairman Maurice Newman was the head of Bain & Company at the time of the 1987 crash. He notes that sharemarket valuations are again highly inflated, and share prices are now well above those that prevailed immediately before previous crashes. The former CEO of the Sydney Futures Exchange, Les Hosking, also warns that financial markets are vulnerable to another crash.

CORPORATES
ASX LIMITED – ASX ASX, SYDNEY FUTURES EXCHANGE LIMITED, BAIN AND COMPANY

ASX stalls as world hits top gear

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Original article by David Rogers
The Australian – Page: 19 & 30 : 13-Oct-17

Australia’s S&P/ASX 200 Index has risen by 2.3 per cent so far in 2017, including a 2.5 per cent gain in the last five trading sessions. However, it is still 15 per cent below its peak, and its performance significantly lags that of its international peers. AMP Capital’s Nader Naeimi says overseas markets offer better opportunities for investors at present, while James Pomeroy of HSBC forecasts that emerging markets will become a major driver of global economic growth.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, AMP CAPITAL INVESTORS LIMITED, HSBC BANK PLC, NIKKEI 225 INDEX, STOXX EUROPE 600 INDEX, DOW JONES INDUSTRIAL AVERAGE INDEX, NASDAQ COMPOSITE INDEX, EURO STOXX 50 INDEX, MSCI EMERGING MARKETS INDEX, TELSTRA CORPORATION LIMITED – ASX TLS

Tension hits world merger activity

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Original article by Cliona O’Dowd
The Australian – Page: 28 : 10-Oct-17

A new report shows that mergers and acquisitions activity in the Asia-Pacific region, excluding Japan, has fallen by 7.8 per cent so far in 2017. M&A activity in the region declined by 10.9 per cent in the September quarter, to $US157.8bn. There were some $A674bn worth of deals globally during the quarter, or 3,772 transactions in total. Macquarie Group advised on $US22.65bn worth of M&A deals in Australasia.

CORPORATES
MACQUARIE GROUP LIMITED – ASX MQG, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, LATTICE SEMICONDUCTOR, UNITED TECHNOLOGIES CORPORATION, ROCKWELL COLLINS INCORPORATED, BRITISH AMERICAN TOBACCO PLC, RJ REYNOLDS TOBACCO COMPANY

Global shares still look best for capital growth

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Original article by David Rogers
The Australian – Page: 28 : 10-Oct-17

The benchmark S&P/ASX 200 has gained 1.3 per cent so far in 2017, compared with an 8.2 per cent gain for the MSCI All Country World index in Australian dollar terms. Most analysts expect global equities to continue to outperform Australian stocks in the near-term, although Richard Coppleson of Bell Potter remains upbeat about the outlook for the local market. He notes that investors are likely to reinvest some of the $A23.7bn worth of dividends that have been paid in recent weeks.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, MSCI ALL COUNTRY WORLD INDEX, BELL POTTER SECURITIES LIMITED, CITIGROUP PTY LTD, MORGAN STANLEY AUSTRALIA LIMITED

Get ready for a lost decade for shares

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Original article by Philip Baker
The Australian Financial Review – Page: 32 : 5-Oct-17

The key US sharemarket indices are trading at record highs, while Australia’s benchmark S&P/ASX 200 is now trading slightly below its level at the start of 2017. At 5,652 points, the local bourse remains well below its record high of 6,828 on 1 November 2007. Independent investment analyst Boris Pogos notes that there have been a number of other periods during which the Australian sharemarket has delivered a negative return over 10 years or more, and these trends suggest that the all-time record high may not be breached until at least 2020.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, DOW JONES INDUSTRIAL AVERAGE INDEX, STANDARD AND POOR’S 500 INDEX, NASDAQ COMPOSITE INDEX, RUSSELL 2000 INDEX, UNITED STATES. FEDERAL RESERVE BOARD, CSL LIMITED – ASX CSL, RAMSAY HEALTH CARE LIMITED – ASX RHC, UBS HOLDINGS PTY LTD

Citi tips ‘attractive’ return on stocks

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Original article by James Thomson
The Australian Financial Review – Page: 35 : 6-Sep-17

Data from Citigroup shows that the earnings of Australian-listed companies increased by 17.8 per cent in 2016-17, although growth was just 4.3 per cent when resources stocks are excluded. Earnings are forecast to rise by 3.4 per cent overall in 2017-18, although Tony Brennan of Citigroup notes that growth could be around 10 per cent when dividends are taken into account. Meanwhile, UBS expects earnings growth of 3.5 per cent overall. Citigroup also forecasts that the S&P/ASX 200 could potentially rise by 12 per cent in 2017-18.

CORPORATES
CITIGROUP PTY LTD, UBS HOLDINGS PTY LTD, STANDARD AND POOR’S ASX 200 INDEX, SUNCORP GROUP LIMITED – ASX SUN, PRIMARY HEALTH CARE LIMITED – ASX PRY, AMP LIMITED – ASX AMP, COMPUTERSHARE LIMITED – ASX CPU, QANTAS AIRWAYS LIMITED – ASX QAN, BHP BILLITON LIMITED – ASX BHP, CALTEX AUSTRALIA LIMITED – ASX CTX