K64 Auxiliary Finance and Insurance Services

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

Slowdown is not a meltdown

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Original article by Jens Meyer
The Australian Financial Review – Page: 20 : 5-Jun-17

The Australian sharemarket fell 2.7 per cent during May 2017, compared with a 1.4 per cent gain for the S&P 500. The upcoming release of GDP data will be the next test for the market, with expectations that the economy expanded by 0.3 per cent during the March quarter and 1.6 per cent year-on-year. Weak consumer spending and doubts regarding the outlook for the housing market are key concerns for investors at present, although David Cassidy of UBS says fears about a housing market collapse are not warranted.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S 500 INDEX, UBS HOLDINGS PTY LTD, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, MORGAN STANLEY AUSTRALIA LIMITED, NIKKEI 225 INDEX, AMAZON.COM INCORPORATED, MERRILL LYNCH (AUSTRALIA) PTY LTD, CITIGROUP PTY LTD, RESERVE BANK OF AUSTRALIA

Australia ‘must deal with quite spectacular housing bubble’

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Original article by David Rogers
The Australian – Page: 28 : 1-Jun-17

A sharp downturn in the residential property market and an economic slowdown in China are among the biggest risks to the Australian economy, according to Willem Buiter of Citigroup. The investment bank’s global chief economist warns that the Federal Government’s plans to invest $A75bn in infrastructure over 10 years will not be sufficient to offset the impact of a property market downturn. He says the Government must take action to ensure that the housing market has a soft landing.

CORPORATES
CITIGROUP INCORPORATED, THE GOLDMAN SACHS GROUP INCORPORATED, LONDON SCHOOL OF ECONOMICS, BANK OF ENGLAND, WORLD BANK, EUROPEAN COMMISSION, EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, CORELOGIC AUSTRALIA PTY LTD, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

Bourse in $57bn wipe-out for May

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Original article by Chris Kohler
The Australian – Page: 28 : 1-Jun-17

The Australian sharemarket posted modest gains on 31 May 2017, with the S&P/ASX 200 adding 0.2 per cent to close at 5,724.6 points. National Australia Bank advanced 1.3 per cent to $A30.12 and Wesfarmers was up 1.1 per cent at $A42.70. However, Rio Tinto fell 0.7 per cent to $A62.81 and New Hope Corporation was down 11 per cent at $A1.62. The S&P/ASX 200 shed 3.4 per cent in May, and analysts note that the local market tends to underperform in June.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S ASX ALL ORDINARIES INDEX, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESFARMERS LIMITED – ASX WES, RIO TINTO LIMITED – ASX RIO, NEW HOPE CORPORATION LIMITED – ASX NHC, BHP BILLITON LIMITED – ASX BHP, NEW HOPE CORPORATION LIMITED – ASX NHC, WOODSIDE PETROLEUM LIMITED – ASX WPL, SANTOS LIMITED – ASX STO, OIL SEARCH LIMITED – ASX OSH, ORIGIN ENERGY LIMITED – ASX ORG, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, MACQUARIE GROUP LIMITED – ASX MQG, WOOLWORTHS LIMITED – ASX WOW, DOMINO’S PIZZA ENTERPRISES LIMITED – ASX DMP, ARISTOCRAT LEISURE LIMITED – ASX ALL, AUTOMOTIVE HOLDINGS GROUP LIMITED – ASX AHG, SIRTEX MEDICAL LIMITED – ASX SRX, MYER HOLDINGS LIMITED – ASX MYR, SIGMA HEALTHCARE LIMITED – ASX SIG, QANTAS AIRWAYS LIMITED – ASX QAN, FAIRFAX MEDIA LIMITED – ASX FXJ, IG MARKETS LIMITED, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

Numbers look good, so where’s the euphoria?

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Original article by David Rogers
The Australian – Page: 28 : 31-May-17

Australian bank and resources stocks rallied on 30 May 2017, allowing the benchmark S&P/ASX 200 to finish in the black after reaching a three-month low early in the session. Meanwhile, Citigroup notes that investor sentiment is not sufficiently high that a market retreat is likely, despite key US indices being at or near record highs. However, the S&P/ASX 200 and the S&P 500 have tended to underperform in the month of June, shedding an average of 2.2 per cent and 1.5 per cent respectively over the last 10 years.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S 500 INDEX, CITIGROUP GLOBAL MARKETS INCORPORATED, DOW JONES INDUSTRIAL AVERAGE INDEX, NASDAQ COMPOSITE INDEX, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT