K64 Auxiliary Finance and Insurance Services

‘Sell everything’ call a distant memory

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 31 : 19-Aug-16

Global sharemarkets have defied forecasts in January 2016 of a major slump, with most key indices having recovered from a sell-off in February. Andrew Mitchell of Ophir Asset Management says equities should continue to rise, unless there is a "black swan" event. Many fund managers increased their portfolios’ exposure to cash holdings following the Australian market’s downturn in April 2015, but its rebound from 2016 lows has prompted some to reinvest in equities.

CORPORATES
OPHIR ASSET MANAGEMENT PTY LTD, ROYAL BANK OF SCOTLAND GROUP PLC, FTSE 100 INDEX, BENNELONG AUSTRALIAN EQUITY PARTNERS PTY LTD, KATANA ASSET MANAGEMENT LIMITED, BANK OF AMERICA CORPORATION, MERRILL LYNCH AND COMPANY INCORPORATED, DOW JONES INDUSTRIAL AVERAGE INDEX, ORGANISATION OF PETROLEUM EXPORTING COUNTRIES

Bankers, lawyers to get busy as merger deals poised to pick up

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 19 : 12-Aug-16

Data from Dealogic shows that the value of announced mergers and acquisitions deals in Australia in the year-to-date has fallen to an 11-year low of $US36.3bn. However, the Real Flow Predictor report from Intralinks suggests that there will be an upturn in announced M&As in the final quarter of 2016. Karen Evans-Cullen of law firm Clayton Utz is also upbeat about the outlook for M&A activity.

CORPORATES
DEALOGIC (AUSTRALIA) PTY LTD, INTRALINKS PTY LTD, CLAYTON UTZ, AUSGRID PTY LTD, ASCIANO LIMITED – ASX AIO, BROOKFIELD INFRASTRUCTURE PARTNERS LP, QUBE PROPERTY GROUP PTY LTD, THE GOOD GUYS, NATURE’S CARE, PORT OF MELBOURNE, STATE GRID CORPORATION OF CHINA, CHEUNG KONG INFRASTRUCTURE HOLDINGS LIMITED, AUSTRALIA. DEPT OF THE TREASURY

That high P/E for a stock may not be that high a P/E after all

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Original article by Philip Baker
The Australian Financial Review – Page: 26 : 9-Aug-16

Australia’s benchmark S&P/ASX 200 Index currently boasts a forward price/earnings ratio of 16 times, while its long-term average is around 14.5 times. In contrast, the Dow Jones Industrial Average and the S&P 500 boast forward P/E ratios of about 18 and 20 times. Meanwhile, many individual stocks in the ASX/200 boast P/E ratios of more than 20 times. Clime Investment Management argues that the elevated P/E ratios of some top-20 stocks may not be justified.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, DOW JONES INDUSTRIAL AVERAGE INDEX, STANDARD AND POOR’S 500 INDEX, CLIME ASSET MANAGEMENT PTY LTD, DOMINO’S PIZZA ENTERPRISES LIMITED – ASX DMP, RAMSAY HEALTH CARE LIMITED – ASX RHC, REA GROUP LIMITED – ASX REA, COCHLEAR LIMITED – ASX COH, CSL LIMITED – ASX CSL, BLOOMBERG LP

Strategists see little to fire the ASX 200 past 5500 by end of year

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 1 & 11 : 9-Aug-16

Australia’s benchmark S&P/ASX 200 Index closed at 5,537.8 points on 8 August 2016, but opinion is divided on the level at which it will be trading by the end of the year. Morgan Stanley still expects the ASX 200 to fall to 4,800 by years’ end, although Citigroup, UBS and Credit Suisse forecast that it will be trading at around 5,500. Meanwhile, Tony Brennan of Citigroup expects it to be trading at 5,750 in mid-2017.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, MORGAN STANLEY AUSTRALIA LIMITED, CITIGROUP PTY LTD, UBS HOLDINGS PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WOOLWORTHS LIMITED – ASX WOW

Reporting season may test resilience of ASX

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 20 : 8-Aug-16

Futures traders expect the Australian sharemarket to gain 31 points when trading resumes on 8 August 2016, following a positive lead from Wall Street. The reporting season will continue to be a focus for investors in the coming week, with the Commonwealth Bank, REA Group, Telstra and Cochlear among the companies that are slated to release their latest financial result. The Reserve Bank of New Zealand’s monthly board meeting and Chinese economic data will also attract investors’ attention.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, REA GROUP LIMITED – ASX REA, TELSTRA CORPORATION LIMITED – ASX TLS, COCHLEAR LIMITED – ASX COH, RESERVE BANK OF NEW ZEALAND, AGL PETROLEUM, TRANSURBAN GROUP LIMITED – ASX TCL, BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC, UNIVERSITY OF MELBOURNE. INSTITUTE OF APPLIED ECONOMIC AND SOCIAL RESEARCH, UNITED STATES. FEDERAL RESERVE BOARD, STANDARD AND POOR’S 500 INDEX, RESERVE BANK OF AUSTRALIA, PERPETUAL INVESTMENTS, TD SECURITIES

Lower rates help stocks but won’t spur growth

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Original article by David Rogers
The Australian – Page: 31 : 4-Aug-16

Australia’s S&P/ASX 200 gained 6.3 per cent in July 2016, but it has shed 2.2 per cent since the Reserve Bank reduced the cash rate to a record low on 2 August. However, equities are likely to benefit from a likely trend for self-managed superannuation funds to reduce their exposure to cash as returns from such investments fall. The outlook for interest rates in Australia and abroad is also likely to ensure that price-earnings ratios remain elevated for some time.

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

Post-Brexit rally tipped to continue

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Original article by David Rogers
The Australian Financial Review – Page: 32 : 2-Aug-16

Australia’s S&P/ASX 200 gained 6.3 per cent in July 2016, and it has risen by 11 per cent since falling sharply after the UK voted to leave the European Union. The benchmark index is likely to continue to perform well in August, regardless of whether the Reserve Bank decides to reduce the cash rate. The bourse is benefiting from expectations that interest rates in Australia and overseas will remain low for some time. The latest GDP data in the US has dampened expectations that the Federal Reserve will ease monetary policy in 2016.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, RESERVE BANK OF AUSTRALIA, UNITED STATES. FEDERAL RESERVE BOARD, BANK OF JAPAN

New ASX boss Dominic Stevens ‘cautious’ on blockchain switch

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Original article by James Eyers
The Australian Financial Review – Page: 1 & 8 : 2-Aug-16

Former Challenger CEO Dominic Stevens has been appointed as the new CEO of ASX Limited. He replaces Elmer Funke Kupper, who resigned in March 2016. Stevens says he will concentrate on issues such as the consolidation in stock exchange services and changes in listing rules, whose aim would be to raise the quality of listed companies. Under his leadership, the ASX will proceed cautiously with implementing new technologies, including blockchain technology.

CORPORATES
ASX LIMITED – ASX ASX, CHALLENGER LIMITED – ASX CGF, TABCORP HOLDINGS LIMITED – ASX TAH, SOCIETYONE AUSTRALIA PTY LTD, DIGITAL ASSET HOLDINGS, CONTANGO ASSET MANAGEMENT LIMITED, LONDON STOCK EXCHANGE, DEUTSCHE BOERSE, SINGAPORE EXCHANGE LIMITED

Citi’s Brennan tips resilience in earnings growth

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Original article by David Rogers
The Australian – Page: 34 : 29-Jul-16

The Australian sharemarket currently boasts a forward price-earnings ratio of 16.6 times, but some market watchers expect that the August 2016 reporting season will justify the high earnings multiple. Tony Brennan of Citigroup is upbeat about the reporting season, saying the positive earnings surprises are likely to outweigh the negative surprises. The benchmark S&P/ASX 200 closed at 5556.6 on 27 July, although Brennan expects it to end the year at about 5,500. However, he forecasts that it will rise to 5,750 by mid-2017.

CORPORATES
CITIGROUP PTY LTD, STANDARD AND POOR’S ASX 200 INDEX, APPLE INCORPORATED, FACEBOOK INCORPORATED

ASX listing rule changes pushed back after flood of feedback

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Original article by Yolanda Redrup
The Australian Financial Review – Page: 20 : 27-Jul-16

Stock exchange operator ASX Limited has advised that new listing rules that were to have been introduced on 1 September 2016 will now take effect on 19 December. The ASX has opted to delay the starting date for the new rules in response to the significant feedback it has received during the consultation phase. The revised listing rules will make it harder for business start-ups to undertake IPOs.

CORPORATES
ASX LIMITED – ASX ASX, WISETECH GLOBAL LIMITED – ASX WTC, CONNEXION MEDIA LIMITED – ASX CXZ, GENERAL MOTORS CORPORATION