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‘Something’s gotta give’: rising stocks, bonds and gold sound alert

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Original article by Michael Roddan
The Australian – Page: 19 & 27 : 13-Jul-16

The Australian sharemarket has gained six per cent since reaching its recent low in the wake of Great Britain’s vote to leave the European Union. Meanwhile, the S&P 500 has risen by 16 per cent since February 2016, and it reached a record high in mid-July. Traditional safe haven investment classes are also in strong demand, with the yield on 10-year Australian government bonds remaining close to a record low and the gold price testing its highest level in more than two years.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S 500 INDEX, MACQUARIE GROUP LIMITED – ASX MQG, PLATINUM ASSET MANAGEMENT LIMITED – ASX PTM, BAKER STEEL CAPITAL MANAGERS LLP, UNITED STATES. FEDERAL RESERVE BOARD, BELL POTTER SECURITIES LIMITED, PERPETUAL LIMITED – ASX PPT, JAPAN. OFFICE OF THE PRIME MINISTER, NIKKEI 225 INDEX

Expensive defensives ‘threatened’

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 1 & 11 : 12-Jul-16

Paul Ashworth of Cameron Harrison is among the financial market experts who question whether the rally in defensive stocks can be sustained. Defensive sectors such as healthcare, utilities and industrials have posted double-digit gains over the last year, while the broader Australian sharemarket has shed three per cent. Prime Value Asset Management’s ST Wong notes that some stocks such as infrastructure and utilities are now trading at high forward price-earnings ratios, but he says they could post further gains if the bond rally continues.

CORPORATES
CAMERON HARRISON PTY LTD, PRIME VALUE ASSET MANAGEMENT LIMITED, STANDARD AND POOR’S ASX 200 INDEX, AGL ENERGY LIMITED – ASX AGL, ALTIUM LIMITED – ASX ALU, TREASURY WINE ESTATES LIMITED – ASX TWE, INFIGEN ENERGY LIMITED – ASX IFN, INVESTORS MUTUAL LIMITED, WOOLWORTHS LIMITED – ASX WOW, WESFARMERS LIMITED – ASX WES, INTEGRAL DIAGNOSTICS LIMITED – ASX IDX, VIRTUS HEALTH LIMITED – ASX VRT, ORORA LIMITED – ASX ORA, VITA GROUP LIMITED – ASX VTG

ASX tipped to hit 5500 by end of 2016

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Original article by Jessica Sier
The Australian Financial Review – Page: 21 : 11-Jul-16

Hasan Tevfik of Credit Suisse says Australian shares are relatively cheap at present, in comparison to alternative investments such as cash and bonds. Tevfik adds that the prospect of further official interest rate cuts should also prompt investors to switch to equities. Meanwhile, UBS notes that the market’s price-to-book value is now 13 per cent below the long-term average, and about 50 per cent lower in the case of resources stocks. UBS’s David Cassidy expects the market to be trading at around 5,500 points by the end of 2016.

CORPORATES
CREDIT SUISSE (AUSTRALIA) LIMITED, UBS HOLDINGS PTY LTD, STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S ASX ALL ORDINARIES INDEX, RESERVE BANK OF AUSTRALIA, CSL LIMITED – ASX CSL, BRAMBLES LIMITED – ASX BXB, AMCOR LIMITED – ASX AMC

PayPal takes $85m slice of SME lending pie

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Original article by Michael Bennet
The Australian – Page: 23 : 8-Jul-16

PayPal has written more than $A85 million worth of loans to about 3,000 small businesses in Australia since late 2014. Darrell Esch, the global general manager of small and medium business lending at PayPal, is amazed by the rate of growth at PayPal Working Capital. The program’s combined figure for loans in the US, Great Britain and Australia exceeds $US2 billion ($A2.6 billion).

CORPORATES
PAYPAL AUSTRALIA PTY LTD, PAYPAL INCORPORATED, SOCIETYONE AUSTRALIA PTY LTD, PROSPA FINANCIAL PTY LTD, MACQUARIE SECURITIES PTY LTD, ETTITUDE AUSTRALIA

Investors defy Brexit to scoop bargains

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Original article by Jessica Sier
The Australian Financial Review – Page: 29 : 8-Jul-16

CYBG and Henderson Group are among the Australian-listed stocks that have been heavily sold down in the wake of the UK’s vote to leave the European Union. Some local fund managers have capitalised on the bearish sentiment to increase their holdings of unloved stocks that have exposure to the UK. However, Bennelong Australian Equity Partners’ Julian Beaumont remains cautious about such stocks, while some fund managers are increasing their holdings of gold stocks or real estate investment trusts.

CORPORATES
CYBG PLC – ASX CYB, HENDERSON GROUP PLC – ASX HGG, PERPETUAL INVESTMENTS, BENNELONG AUSTRALIAN EQUITY PARTNERS PTY LTD, AVIVA PLC, THE STAR ENTERTAINMENT GROUP LIMITED – ASX SGR, ARISTOCRAT LEISURE LIMITED – ASX ALL, PHOENIX PORTFOLIOS PTY LTD, DESANE GROUP HOLDINGS LIMITED – ASX DGH, BLACKWALL PROPERTY TRUST – ASX BWR, STATE STREET GLOBAL ADVISORS AUSTRALIA LIMITED, CHARTER HALL RETAIL REIT – ASX CQR, VAN ECK ASSOCIATES CORPORATION, REGIS RESOURCES LIMITED – ASX RRL, MOONSTAR INVESTMENTS PTY LTD, PANTERRA GOLD LIMITED – ASX PGI, UBS HOLDINGS PTY LTD, SYRAH RESOURCES LIMITED – ASX SYR, MACQUARIE GROUP LIMITED – ASX MQG, GRYPHON MINERALS LIMITED – ASX GRY

Brexit II pushes Aussie bonds to record low

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Original article by Vesna Poljak, James Chessell
The Australian Financial Review – Page: 1 & 29 : 7-Jul-16

The yield on Australia’s 10-year government bond fell to a record low of 1.84 per cent on 6 July 2016. Bearish sentiment toward equities also prompted the yield on US Treasuries to fall to 1.34 per cent. The global shift to "safe haven" assets also prompted a rally in the gold price, which reached its highest level in two years. Meanwhile, the fallout from the UK’s vote to leave the European Union is continuing, with several British property funds moving to freeze redemptions.

CORPORATES
UBS GLOBAL ASSET MANAGEMENT (AUSTRALIA) LIMITED, BANK OF ENGLAND, STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S ASX 200 BANKS INDEX, AXA INVESTMENT MANAGERS PTY LTD, M&G INVESTMENT MANAGEMENT LIMITED, AVIVA PLC, STANDARD LIFE PLC, YOUGOV LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, SPDR GOLD TRUST, COMMODITY EXCHANGE OF NEW YORK

Hung parliament syndrome: Lessons from Gillard in 2010

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Original article by Jessica Sier
The Australian Financial Review – Page: 27 : 5-Jul-16

The potential for a hung parliament following the 2016 federal election is likely to weigh on investor sentiment in the near-term, although equities quickly recovered after a sell-off in the wake of the 2010 election. The prospect of another obstructive Senate in particular is a concern for investors, as it is likely to affect the timing of a return to a Budget surplus. However, financial markets are proving to be resilient to risk factors, as the rebound following the UK’s "Brexit" referendum demonstrates.

CORPORATES
WATERMARK FUNDS MANAGEMENT PTY LTD, STANDARD AND POOR’S ASX 200 INDEX, CAPITAL ECONOMICS LIMITED, CITIGROUP PTY LTD, STANDARD AND POOR’S CORPORATION

ASX gains despite election uncertainty

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Original article by Jessica Sier
The Australian Financial Review – Page: 26 : 5-Jul-16

The Australian sharemarket posted solid gains on 4 July 2016, with the S&P/ASX 200 adding 0.7 per cent to close at 5,281.8. The knife-edge federal election result weighed on financial stocks, with Tristan K’Nell of Altair Asset Management noting that the Australian Labor Party will hold a royal commission into the banks if it wins office. However, resources groups benefited from a rise in commodity prices, while the yield on 10-year government bonds increased to 1.99 per cent after previously reaching a record low.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S ASX ALL ORDINARIES INDEX, ALTAIR ASSET MANAGEMENT PTY LTD, AUSTRALIAN LABOR PARTY, CAPITAL ECONOMICS LIMITED, OANDA AUSTRALIA PTY LTD, SELECT HARVESTS LIMITED – ASX SHV, RESERVE BANK OF AUSTRALIA, AUSTRALIAN BUREAU OF STATISTICS, MORGAN STANLEY CAPITAL INTERNATIONAL ASIA-PACIFIC INDEX

Election shock means tougher job for RBA

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Original article by Vesna Poljak
The Australian Financial Review – Page: 28 : 4-Jul-16

The Australian sharemarket is expected to lose ground when trading resumes on 4 July 2016. Uncertainly regarding the outcome of the federal election is likely to weigh on investor sentiment, while the Australian dollar is tipped to fall after peaking at $US0.7503 in local trading on 1 July. Stephen Walters of the Australian Institute of Company Directors says Australia’s "AAA" credit rating may be reviewed as a result of the election. Meanwhile, economists say the Reserve Bank is now unlikely to reduce the cash rate in July.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, AUSTRALIAN INSTITUTE OF COMPANY DIRECTORS, AUSTRALIAN INSTITUTE OF COMPANY DIRECTORS, RESERVE BANK OF AUSTRALIA, FIIG SECURITIES LIMITED, DOW JONES INDUSTRIAL AVERAGE INDEX, STANDARD AND POOR’S 500 INDEX, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

ASX enjoys sweet end to sour financial year

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Original article by Jessica Sier
The Australian Financial Review – Page: 29 : 1-Jul-16

The Australian sharemarket posted solid gains on 30 June 2016, with the S&P/ASX 200 adding 1.8 per cent to end the financial year at 5,233.4. The Commonwealth Bank was 1.2 per cent higher at $A74.37 and BHP Billiton advanced 1.9 per cent to end the session at $A18.65. Woodside Petroleum rose 2.8 per cent to close at $A26.84 and Mayne Pharma was up 35.1 per cent at $A1.09. The benchmark index shed 4.1 per cent in 2015-16.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BHP BILLITON LIMITED – ASX BHP, WOODSIDE PETROLEUM LIMITED – ASX WPL, MAYNE PHARMA GROUP LIMITED – ASX MYX, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, NEWCREST MINING LIMITED – ASX NCM, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, TELSTRA CORPORATION LIMITED – ASX TLS, WOOLWORTHS LIMITED – ASX WOW, WESFARMERS LIMITED – ASX WES, PM CAPITAL LIMITED, PERPETUAL INVESTMENTS, RESERVE BANK OF AUSTRALIA, COLES SUPERMARKETS AUSTRALIA PTY LTD, STANDARD AND POOR’S ASX ALL ORDINARIES INDEX, FTSE 100 INDEX, FTSE 250 INDEX