K64 Auxiliary Finance and Insurance Services

OPEC deal sparks energy stocks rally

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Original article by Jessica Sier, Jens Meyer
The Australian Financial Review – Page: 30 : 30-Sep-16

The S&P/ASX 200 index rose one per cent to 5,471.3 points on 29 September 2016. Energy stocks performed strongly following a decision of OPEC members to reduce production in the coming months. The energy sector closed 6.3 per cent higher, with Beach Energy gaining 10 per cent and Santos, Origin and Woodside all climbing more than seven per cent.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, ORGANISATION OF PETROLEUM EXPORTING COUNTRIES, BEACH ENERGY LIMITED – ASX BPT, SANTOS LIMITED – ASX STO, ORIGIN ENERGY LIMITED – ASX ORG, WOODSIDE PETROLEUM LIMITED – ASX WPL, FORTESCUE METALS GROUP LIMITED – ASX FMG, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, LYNAS CORPORATION LIMITED – ASX LYC, SPARK INFRASTRUCTURE GROUP – ASX SKI, MIGME LIMITED – ASX MIG, SOSV, DEUTSCHE BANK AG, UNITED STATES. FEDERAL RESERVE BOARD

Bull market in bonds not over just yet: Citi

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Original article by Chris Kohler
The Australian – Page: 32 : 27-Sep-16

The yield on Australian 10-year government bonds peaked at 2.13 per cent on 21 September 2016, but it has since retreated to below the two per cent level. Citigroup does not believe that the recent spike in bond yields will signal the end of the three-decade bull market, and the firm does not expect the rise in yields to be sustained. Citigroup notes that financial stock are among those that should benefit from higher bond yields, while it says Australian stocks that are vulnerable include real estate investment trusts and utilities.

CORPORATES
CITIGROUP PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED, APA GROUP – ASX APA, SYDNEY AIRPORT – ASX SYD, TATTS GROUP LIMITED – ASX TTS, INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG, HEALTHSCOPE LIMITED – ASX HSO, QANTAS AIRWAYS LIMITED – ASX QAN, RIO TINTO LIMITED – ASX RIO, MACQUARIE GROUP LIMITED – ASX MQG, CALTEX AUSTRALIA LIMITED – ASX CTX, UNITED STATES. FEDERAL RESERVE BOARD, BANK OF JAPAN, EUROPEAN CENTRAL BANK

Investors warned not to expect smooth ride

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 31 : 23-Sep-16

Australian equity strategists are cautious about the near-term outlook for the domestic bourse, with most still expecting the S&P/ASX 200 to be trading at around the 5,500-point level at the end of 2016. Meanwhile, Tony Brennan of Citigroup forecasts that the benchmark index will top 5,750 points by mid-2017. With the US Federal Reserve opting to leave interest rates on hold in September, David Cassidy of UBS says the presidential election could influence the timing of the next interest rate move.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, CITIGROUP PTY LTD, UBS HOLDINGS PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED, UNITED STATES. FEDERAL RESERVE BOARD, BANK OF JAPAN

Chi-X accuses ASX of freezing the market

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Original article by Vesna Poljak, Jessica Sier
The Australian Financial Review – Page: 13 & 18 : 22-Sep-16

ASX Limited has been accused of mismanaging an outage which occurred on 19 September 2016. The exchange operator put the market in "enquire" mode, thus preventing stockbrokers from cancelling their open orders on the ASX and executing them at rival exchange Chi-X Australia. John Fildes, the CEO of Chi-X, said the ASX should have put the market in "adjust" mode, which is less restrictive.

CORPORATES
ASX LIMITED – ASX ASX, CHI-X AUSTRALIA PTY LTD, TABB GROUP INCORPORATED, AUSTRALIA. DEPT OF THE TREASURY

Two-thirds of funds beaten by the index

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 29 : 20-Sep-16

Data from Morningstar shows that 36.25 per cent of Australia’s actively-managed large-capitalisation funds matched or exceeded the return from the S&P/ASX 200 Accumulation Index in the year to 31 August 2016. This compares with 37.16 per cent over a three-year period, and 35.9 per cent over five years. In contrast, the five-year performance of US actively managed large-cap equity funds against the S&P 500 was just 9.5 per cent. Julian Beaumont of Bennelong Australian Equity Partners notes that Australia’s large-cap funds are more likely to engage in so-called index hugging.

CORPORATES
MORNINGSTAR PTY LTD, STANDARD AND POOR’S ASX 200 ACCUMULATION INDEX, STANDARD AND POOR’S 500 INDEX, BENNELONG AUSTRALIAN EQUITY PARTNERS PTY LTD, STATE STREET GLOBAL ADVISORS LIMITED, STANDARD AND POOR’S ASX SMALL ORDINARIES ACCUMULATION INDEX, RAMSAY HEALTH CARE LIMITED – ASX RHC, PRIMARY HEALTH CARE LIMITED – ASX PRY, WESTPAC BANKING CORPORATION – ASX WBC, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

IT system fault floors ASX

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Original article by Jessica Sier
The Australian Financial Review – Page: 1 & 2 : 20-Sep-16

Stock exchange operator ASX Limited has indicated that an "internal hardware failure" rather than a cyber attack was responsible for technical problems that curtailed sharemarket trading on 19 September 2016. The market opened later than usual and closed early, with just $A169m worth of shares in the top 200 stocks changing hands. The ASX has stressed that the problems were not related to the issues that disrupted trading for four hours in 2011.

CORPORATES
ASX LIMITED – ASX ASX, CADENCE CAPITAL LIMITED – ASX CDT, CITIGROUP PTY LTD, PEAK ASSET MANAGEMENT PTY LTD, BLOCK EVENT, CREDIT SUISSE (AUSTRALIA) LIMITED, IG MARKETS LIMITED, CHI-X AUSTRALIA PTY LTD, RIVKIN SECURITIES PTY LTD, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIA. DEPT OF THE TREASURY

Padley ruffles feathers of the fund managers

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 20 : 19-Sep-16

Stockbroker Marcus Padley says the emergence of separately managed accounts represents a major change for the funds management industry. Padley is best known for the "Marcus Today" investment newsletter, which was launched in 1998. Marcus Today Investment Strategists has launched two SMAs, in which the client directly owns the shares. Padley favours IT stocks such as NextDC and Aconex, and healthcare stocks like Cochlear and Mayne Pharma.

CORPORATES
MARCUS TODAY INVESTMENT STRATEGISTS PTY LTD, BELL SECURITIES LIMITED, MORNINGSTAR PTY LTD, STANDARD AND POOR’S ASX 200 ACCUMULATION INDEX, AITKEN INVESTMENT MANAGEMENT PTY LTD, NEXTDC LIMITED – ASX NXT, ACONEX LIMITED – ASX ACX, COCHLEAR LIMITED – ASX COH, MAYNE PHARMA GROUP LIMITED – ASX MYX, MEGAPORT LIMITED – ASX MP1, NANOSONICS LIMITED – ASX NAN, SPARK INFRASTRUCTURE GROUP – ASX SKI, VOCUS COMMUNICATIONS LIMITED – ASX VOC, CHORUS LIMITED – ASX CNU, SUPERLOOP LIMITED – ASX SLC, SPEEDCAST INTERNATIONAL LIMITED – ASX SDA, NETCOMM WIRELESS LIMITED – ASX NTC, BT INVESTMENT MANAGEMENT LIMITED – ASX BTT, CREDIT CORP GROUP LIMITED – ASX CCP, FLIGHT CENTRE TRAVEL GROUP LIMITED – ASX FLT, MACQUARIE GROUP LIMITED – ASX MQG, TELSTRA CORPORATION LIMITED – ASX TLS

Investors face nervous wait ahead of rate calls

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Original article by Patrick Commins
The Australian Financial Review – Page: 19 : 19-Sep-16

The upcoming monetary policy meetings of the US Federal Reserve and the Bank of Japan will be a focus for Australian investors in the week beginning 19 September 2016. Futures markets have priced in a 20 per cent chance that the Federal Reserve will increase the cash rate, and Paul Ashworth of Capital Economics says a rate rise in December is more likely. The minutes from the Reserve Bank of Australia will also be released, and Philip Lowe will appear before Parliament for the first time in his new role of RBA governor.

CORPORATES
UNITED STATES. FEDERAL RESERVE BOARD, BANK OF JAPAN, RESERVE BANK OF AUSTRALIA, CAPITAL ECONOMICS LIMITED, RESERVE BANK OF NEW ZEALAND, STANDARD AND POOR’S ASX 200 INDEX, WESTPAC BANKING CORPORATION – ASX WBC, AMP CAPITAL INVESTORS LIMITED, EUROPEAN CENTRAL BANK, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Global fundies not counting on a crash

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Original article by Vesna Poljak, Jonathan Shapiro
The Australian Financial Review – Page: 15 & 22 : 15-Sep-16

Investors have been warned to expect further volatility in equity markets until the US Federal Reserve resumes increasing interest rates. Many global fund managers anticipate that the central bank will begin tightening monetary policy soon, although they generally expect rates to rise gradually. The recent equities sell-down has boosted government bond yields, and there is growing concern that the bond market’s long bull run may be nearing its end.

CORPORATES
UNITED STATES. FEDERAL RESERVE BOARD, STANDARD AND POOR’S ASX 200 INDEX, MAGELLAN FINANCIAL GROUP LIMITED – ASX MFG, BT INVESTMENT MANAGEMENT LIMITED – ASX BTT, K2 ASSET MANAGEMENT HOLDINGS LIMITED – ASX KAM, PLATINUM ASSET MANAGEMENT LIMITED – ASX PTM

Correction fears as bears claw back hopes of rally

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Original article by Chris Kohler, Daniel Palmer
The Australian – Page: 19 & 28 : 14-Sep-16

The Australian sharemarket posted further losses on 13 September 2016, after initially rebounding from the sharp fall in the previous trading session. However, US markets rallied after Federal Reserve official Lael Brainard said the central bank should adopt a cautious approach to tightening monetary policy. The Australian market has shed about six per cent in the last three weeks, and Lucinda Chan of Macquarie Private Wealth says further profit-taking is likely.

CORPORATES
UNITED STATES. FEDERAL RESERVE BOARD, MACQUARIE PRIVATE WEALTH MANAGEMENT PTY LTD, DOW JONES INDUSTRIAL AVERAGE INDEX, STANDARD AND POOR’S 500 INDEX, NASDAQ COMPOSITE INDEX, WOOLWORTHS LIMITED – ASX WOW, MYER HOLDINGS LIMITED – ASX MYR, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, TELSTRA CORPORATION LIMITED – ASX TLS, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA