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Market jitters set off $27bn plunge

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Original article by David Rogers
The Australian – Page: 1 : 22-Jun-17

The Australian sharemarket shed 1.6 per cent on 21 June, extending its losses since early May to nearly five per cent. The S&P/ASX 200 typically falls in May and June, in the lead-up to the end of the financial year, and it has shed 4.4 per cent over the last two months. A move to add China’s A shares to the MSCI Emerging Markets Index weighed on sharemarkets across the Asia-Pacific region, although China’s CSI 300 Index rose 1.2 per cent.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, CSI 300 INDEX, MSCI EMERGING MARKETS INDEX, BELL POTTER SECURITIES LIMITED, QBE INSURANCE GROUP LIMITED – ASX QBE, MACQUARIE GROUP LIMITED – ASX MQG, AMAZON.COM INCORPORATED, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

PE, capital flows bolster local M&A prospects

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 13 & 17 : 20-Jun-17

Data from Dealogic shows that $US44.1bn ($A57.9bn) worth of Australian mergers and acquisitions have been announced so far in 2017. This is 52 per cent higher than at the same time in 2016, and market watchers anticipate that M&A activity will remain strong in the second half of the year. Kate Towey of law firm Allens says overseas investors regard the Australian market as stable and attractive, while Alex Cartel of Deutsche Bank expects shareholder activism to have an increasing influence on the local market.

CORPORATES
DEALOGIC (AUSTRALIA) PTY LTD, ALLENS, DEUTSCHE BANK AG, TATTS GROUP LIMITED – ASX TTS, TABCORP HOLDINGS LIMITED – ASX TAH, ENDEAVOUR ENERGY LIMITED, ALINTA ENERGY (AUSTRALIA) PTY LTD, FAIRFAX MEDIA LIMITED – ASX FXJ, KKR AND COMPANY LP, VOCUS GROUP LIMITED – ASX VOC, PLATINUM EQUITY HOLDINGS, STAPLES AUSTRALIA PTY LTD, OFFICEMAX INCORPORATED, BHP BILLITON LIMITED – ASX BHP, ELLIOTT MANAGEMENT CORPORATION, JOHNSON AND JOHNSON, ACTELION, AMAZON.COM INCORPORATED, WHOLE FOODS MARKET INCORPORATED, MINTER ELLISON, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD

Time running out for tax-loss selling

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Original article by Jessica Sier
The Australian Financial Review – Page: 20 : 19-Jun-17

Katana Asset Management’s Romano Sala Tenna notes that Australian investors traditionally engaged in tax-loss selling in the final week of June. However, he says investors are increasingly selling underperforming stocks well before the end of the financial year. Quantitative analysis shows that stock which experience a sharp sell-off in May and June typically rebound over the first few months of the new fiscal year. Stocks that have been subject to tax-loss selling in 2017 include Mayne Pharma, APN Outdoor Group and Harvey Norman.

CORPORATES
KATANA ASSET MANAGEMENT LIMITED, MAYNE PHARMA GROUP LIMITED – ASX MYX, APN OUTDOOR GROUP LIMITED – ASX APO, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, JB HI-FI LIMITED – ASX JBH, SUPER RETAIL GROUP LIMITED – ASX SUL, ORIGIN ENERGY LIMITED – ASX ORG, SPOTLESS GROUP HOLDINGS LIMITED – ASX SPO, SLATER AND GORDON LIMITED – ASX SGH, AUSTRALIAN TAXATION OFFICE

IPO tale: more floats, less cash

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Original article by Scott Murdoch
The Australian – Page: 20 : 19-Jun-17

A total of 137 companies listed on the Australian sharemarket during the first five months of 2017, compared with 113 for the same period in 2016. However, the total value of initial capital raised has fallen from $A22.6bn to just $A13.67bn, and the total value of secondary capital raised has fallen from $A43.5bn to $A35.5bn. Simon Poidevin of Bell Potter anticipates an upturn in secondary capital raisings in the new financial year as companies seek growth via acquisitions.

CORPORATES
BELL POTTER SECURITIES LIMITED, BINGO INDUSTRIES LIMITED – ASX BIN, OFFICEWORKS SUPERSTORES PTY LTD, ZIP INDUSTRIES AUSTRALIA, CRAVEABLE BRANDS LIMITED, RED ROOSTER FOODS, OPORTO PTY LTD, KELLY PARTNERS GROUP HOLDINGS LIMITED – ASX KPG, NUTRANO PRODUCE GROUP, STANDARD AND POOR’S ASX 200 INDEX, DOW JONES INDUSTRIAL AVERAGE INDEX, STANDARD AND POOR’S 500 INDEX

ASX ripe for activist investors: Credit Suisse

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Original article by David Rogers
The Australian – Page: 27 : 15-Jun-17

Hasan Tevfik of Credit Suisse expects more activist investors to target Australian-listed stocks in the wake of Elliott Management’s push for a restructuring at BHP Billiton. He says activist investment is gaining momentum in Australia and it is inevitable that local superannuation funds will adopt this strategy given the returns achieved by activist hedge funds in North America. Caltex, AMP, News Corporation and Lendlease are among the companies that are seen as potential targets for activist investors.

CORPORATES
CREDIT SUISSE (AUSTRALIA) LIMITED, BHP BILLITON LIMITED – ASX BHP, ELLIOTT MANAGEMENT CORPORATION, CALTEX AUSTRALIA LIMITED – ASX CTX, AMP LIFE LIMITED, NEWS CORPORATION – ASX NWS, LEND LEASE GROUP LIMITED – ASX LLC, CSR LIMITED – ASX CSR, MYER HOLDINGS LIMITED – ASX MYR, AMP CAPITAL INVESTORS LIMITED, TRIBECA INVESTMENT PARTNERS PTY LTD, ESCALA PARTNERS LIMITED, ARDENT LEISURE GROUP – ASX AAD, BRICKWORKS LIMITED – ASX BKW, WASHINGTON H SOUL PATTINSON AND COMPANY LIMITED – ASX SOL, PERPETUAL LIMITED – ASX PPT, FEDERAL COURT OF AUSTRALIA, LIM ADVISORS LIMITED, AMP CAPITAL CHINA GROWTH FUND

Tech sell-off isn’t end of the world

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Original article by Philip Baker
The Australian Financial Review – Page: 32 : 14-Jun-17

The Nasdaq Composite Index has gained nearly 15 per cent so far in 2017, despite shedding 2.5 per cent in the last two trading sessions. While shares in the so-called FAANG stocks (Facebook, Apple, Amazon, Netflix and Google parent Alphabet) have been heavily sold down in recent days, they have all posted strong gains so far in the calendar year. Meanwhile, although US technology stocks are widely considered to be overvalued, the price-to-earnings ratio of the Nasdaq 100 is trading at around 20.3, compared with a peak of around 45 prior to the "tech wreck" in 2000.

CORPORATES
NASDAQ COMPOSITE INDEX, FACEBOOK INCORPORATED, APPLE INCORPORATED, AMAZON.COM INCORPORATED, NETFLIX INCORPORATED, GOOGLE INCORPORATED, ALPHABET INCORPORATED

Technology plunge raises fears of meltdown

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Original article by John Kehoe
The Australian Financial Review – Page: 27 : 13-Jun-17

The Nasdaq Composite Index reached a record high on 9 June 2017, before closing down 1.8 per cent amid bearish sentiment toward technology stocks. Shares in Facebook, Amazon, Apple, Netflix and Google parent Alphabet shed 3-5 per cent. The sell-off was prompted by a range of factors, including a report from Goldman Sachs suggesting that many US technology stocks are overvalued. Analysts have downplayed comparisons with the "tech wreck", while Bruce McCain of Key Private Bank says a pullback in the sector was inevitable.

CORPORATES
NASDAQ COMPOSITE INDEX, FACEBOOK INCORPORATED, AMAZON.COM INCORPORATED, APPLE INCORPORATED, NETFLIX INCORPORATED, GOOGLE INCORPORATED, ALPHABET INCORPORATED, MICROSOFT CORPORATION, THE GOLDMAN SACHS GROUP INCORPORATED, KEY PRIVATE BANK, CITRON RESEARCH, NVIDIA CORPORATION, DOW JONES INDUSTRIAL AVERAGE INDEX, STANDARD AND POOR’S 500 INDEX

Paradice mulls responsible investor fund

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Original article by John Stensholt
The Australian Financial Review – Page: 26 : 13-Jun-17

Paradice Investment Management’s David Paradice says his company is considering setting up a number of new funds over the next year. He says they could include an emerging markets fund and an environmental, social and governance fund. Paradice, who is currently based in the US, was the recipient of an Order of Australia award as part of the 2017 Queen’s Birthday honours. He says he would like to see companies focus more on making communities better, as well as treating their staff better and reducing waste.

CORPORATES
PARADICE INVESTMENT MANAGEMENT PTY LTD, UNIVERSITY OF COLORADO, ALPHABET INCORPORATED, FACEBOOK INCORPORATED, GOOGLE INCORPORATED, AMAZON.COM INCORPORATED, CLIMATE COUNCIL OF AUSTRALIA LIMITED, SOCIAL VENTURES AUSTRALIA LIMITED, TARONGA CONSERVATION SOCIETY AUSTRALIA

Small cap stock the winners in slow-growth local economy

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Original article by Myriam Robin
The Australian Financial Review – Page: 27 : 7-Jun-17

Victor Gomes of UBS says any economic slowdown in Australia means small-capitalisation stocks with significant offshore earnings are likely to perform well. Large-cap stocks have outperformed in recent years, and some small-caps were heavily sold down during the February 2017 reporting season. Robert Talevski of Activus Investment Advisors says investors need to focus on the long-term investment horizon when buying into small-caps.

CORPORATES
UBS HOLDINGS PTY LTD, ACTIVUS INVESTMENT ADVISORS PTY LTD, FORAGER FUNDS MANAGEMENT PTY LTD, STANDARD AND POOR’S ASX SMALL ORDINARIES INDEX, STANDARD AND POOR’S ASX 20 INDEX, AMAZON.COM INCORPORATED, YOWIE GROUP LIMITED – ASX YOW, GENWORTH MORTGAGE INSURANCE AUSTRALIA LIMITED – ASX GMA

Credit Suisse chief’s cautionary IPO tale

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 17 : 5-Jun-17

Some high-profile IPOs in Australia have been withdrawn in 2017, and Credit Suisse John Knox says the market needs some successful IPOs in order to boost float activity. He adds that private equity firms are unlikely to be behind the majority of IPOs in the near-term. Knox is upbeat about the outlook for mergers and acquisitions activity during the remainder of 2017, while he has welcomed a move by the Foreign Investment Review Board to provide greater clarity regarding offshore bidders.

CORPORATES
CREDIT SUISSE (AUSTRALIA) LIMITED, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, OFFICEWORKS SUPERSTORES PTY LTD, WESFARMERS LIMITED – ASX WES, ZIP INDUSTRIES AUSTRALIA, ALINTA ENERGY (AUSTRALIA) PTY LTD, CHOW TAI FOOK ENTERPRISES LIMITED, ICON GROUP, QIC LIMITED, GOLDMAN SACHS PRIVATE EQUITY, PAGODA INVESTMENTS, TPG CAPITAL LP, FAIRFAX MEDIA LIMITED – ASX FXJ, DEALOGIC (AUSTRALIA) PTY LTD, AMAZON.COM INCORPORATED