K64 Auxiliary Finance and Insurance Services

Dud stocks stage tidy turnarounds

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Original article by Simon Evans
The Australian Financial Review – Page: 16 : 15-Jun-16

A number of stocks whose poor performance had made them candidates for tax-loss selling in the lead-up to the end of the financial year have rebounded in recent months. Santos reached a low of $A2.64 early in 2016, but the stock has since risen to around $A4.48. Other resources and mining-related stocks have also staged a turnaround in recent months, while grocery wholesaler Metcash has risen strongly since September 2015. Likewise, speculation of a potential demerger has boosted the share price of Origin Energy.

CORPORATES
SANTOS LIMITED – ASX STO, METCASH LIMITED – ASX MTS, ORIGIN ENERGY LIMITED – ASX ORG, SOUTH32 LIMITED – ASX S32, WORLEYPARSONS LIMITED – ASX WOR, BRADKEN LIMITED – ASX BKN, PERPETUAL INVESTMENTS, IGA, WOOLWORTHS LIMITED – ASX WOW, COLES SUPERMARKETS AUSTRALIA PTY LTD, ALDI STORES SUPERMARKETS PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG, ARRIUM LIMITED – ASX ARI

Beaten-down blue chips offer attractive buying opportunities

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Original article by Stephen Cauchi
The Australian Financial Review – Page: 30 : 14-Jun-16

Australia’s S&P/ASX300 has gained 3.76 per cent so far in 2016, while the S&P/ASX 200 has shed 2.4 per cent. However, Olivia Engel of State Street Global Advisors remains upbeat about the top 20 blue chip stocks, arguing that the sell-off means that some of them offer value. Tim Schroeders of Pengana Capital recently noted that blue-chip miners BHP Billiton and Rio Tinto represent "reasonable" value on an enterprise value and EBITDA basis.

CORPORATES
STANDARD AND POOR’S ASX 300 INDEX, STANDARD AND POOR’S ASX 20 INDEX, STATE STREET GLOBAL ADVISORS AUSTRALIA LIMITED, PENGANA CAPITAL LIMITED, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, 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, CSL LIMITED – ASX CSL, WESFARMERS LIMITED – ASX WES, WOOLWORTHS LIMITED – ASX WOW, SCENTRE GROUP – ASX SCG, MACQUARIE GROUP LIMITED – ASX MQG, TRANSURBAN GROUP LIMITED – ASX TCL, WOODSIDE PETROLEUM LIMITED – ASX WPL, WESTFIELD CORPORATION – ASX WFD, BRAMBLES LIMITED – ASX BXB, QBE INSURANCE GROUP LIMITED – ASX QBE, AMP LIMITED – ASX AMP, SUNCORP GROUP LIMITED – ASX SUN, INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG

Locals fall short when it comes to annual reports

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Original article by Michael Roddan
The Australian – Page: 23 : 9-Jun-16

Research by KPMG shows that the annual reports of French companies average 310 pages, while Australian annual reports average just 155. Meanwhile, local companies’ consolidated financial statements average 70 pages, compared with 140 in Italy. However, the length of the remuneration reports of Australian companies tend to exceed the global average, comprising 28 per cent of their annual report. KPMG’s global survey also shows that just 14 per cent of Australian companies outline their longer-term business strategy in the annual report.

CORPORATES
KPMG

Minority rule would knock confidence

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 29 : 9-Jun-16

The 2016 federal election remains too close to call, raising the prospect of a hung parliament or a minority government. Analysts warn that investor sentiment would be affected by a minority government, with Chris Nicol and Daniel Blake of Morgan Stanley noting that both business and consumer confidence were hit during the tenure of the previous minority government between 2010 and 2013. Analysis by Citigroup concludes that the Coalition is likely to win the election, although the Australian Labor Party could gain around 10 seats.

CORPORATES
CITIGROUP PTY LTD, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, AUSTRALIAN LABOR PARTY, MORGAN STANLEY AUSTRALIA LIMITED, CITIGROUP PTY LTD, STANDARD AND POOR’S ASX 200 INDEX, MACQUARIE GROUP LIMITED – ASX MQG, WESTPAC BANKING CORPORATION – ASX WBC, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, JB HI-FI LIMITED – ASX JBH, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, WHITEHAVEN COAL LIMITED – ASX WHC

Is the yield play back in vogue?

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Original article by Jessica Sier
The Australian Financial Review – Page: 25 : 8-Jun-16

The low interest rate environment has prompted strong support for high-yielding Australian stocks. However. investors recently began selling yield stocks amid expectations of several interest rate rises in the US during 2016. Citi Global Markets’ Karen Jorritsma notes that yield stocks will be back in favour following the release of the latest US jobs data, which will dampen expectations that the Federal Reserve will increase the cash rate.

CORPORATES
CITIGROUP PTY LTD, UNITED STATES. FEDERAL RESERVE BOARD, SCENTRE GROUP – ASX SCG, SYDNEY AIRPORT – ASX SYD, TRANSURBAN GROUP LIMITED – ASX TCL, APA GROUP – ASX APA, KATANA ASSET MANAGEMENT LIMITED, DEXUS PROPERTY GROUP – ASX DXS, MIRVAC GROUP – ASX MGR

Dobbed in, found guilty

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Original article by Misa Han
The Australian Financial Review – Page: 1 & 2 : 3-Jun-16

Former investment banker Oliver Curtis could be jailed for up to five years after being convicted of conspiracy to commit insider trading. The Australian Securities & Investments Commission had alleged that he profited by using market-sensitive information to trade contracts for difference in 2007 and 2008. Curtis had used inside information supplied by co-conspirator John Hartman, an equities dealer at Orion Asset Management. Hartman has served a 15-month jail term, and received a reduced sentence for providing evidence against Curtis.

CORPORATES
ORION ASSET MANAGEMENT (AUST) PTY LTD, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, MACQUARIE GROUP LIMITED – ASX MQG, LYNAS CORPORATION LIMITED – ASX LYC, CLIFFORD CHANCE

Coca-Cola Amatil tops 10 stocks to buy if June turns ugly

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Original article by Simon Evans
The Australian Financial Review – Page: 30 : 3-Jun-16

The Australian sharemarket has performed well since mid-April 2016, but some analysts believe that this may not be sustained. Tim Baker of Deutsche Bank has identified a number of defensive stocks that investors should consider if sentiment becomes bearish in June. They are Coca-Cola Amatil, Estia Health, Mirvac Group, DUET Group, AGL Energy, Suncorp Group, Medibank Private, Shopping Centres Australasia Property Group, Vicinity Centres and Healthscope.

CORPORATES
DEUTSCHE BANK AG, COCA-COLA AMATIL LIMITED – ASX CCL, ESTIA HEALTH LIMITED – ASX EHE, MIRVAC GROUP – ASX MGR, DUET GROUP – ASX DUE, AGL ENERGY LIMITED – ASX AGL, SUNCORP GROUP LIMITED – ASX SUN, MEDIBANK PRIVATE LIMITED – ASX MPL, SHOPPING CENTRES AUSTRALASIA PROPERTY GROUP – ASX SCP, VICINITY CENTRES – ASX VCX, HEALTHSCOPE LIMITED – ASX HSO

Retail investors face lockout from IPOs if proposals adopted

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Original article by Sally Patten
The Australian Financial Review – Page: 21 : 3-Jun-16

The ASX argues that proposed changes to listing rules are intended to enhance the Australian bourse’s reputation as a market of "quality and integrity". However, the Australian Shareholders’ Association is concerned that the changes outlined in a recent consultation paper will make it harder for retail investors to participate in IPOs. The ASX proposes to introduce a minimum free-float of 20 per cent and scale back the minimum number of shareholders a company must have at the time of its IPO.

CORPORATES
ASX LIMITED – ASX ASX, AUSTRALIAN SHAREHOLDERS’ ASSOCIATION, STANDARD AND POOR’S ASX 200 INDEX

ASX posts best rise for May since 2005

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 26 : 1-Jun-16

The Australian sharemarket lost ground on 31 May 2016, with the S&P/ASX 200 shedding 0.5 per cent to close at 5,378.6. The Commonwealth Bank was one per cent lower at $A77.43 and BHP Billiton was down 0.8 per cent at $A19.08. However, Select Harvests advanced 6.7 per cent to end the session at $A7.15 and Incitec Pivot was up 2.1 per cent at $A3.45. The market gained 2.4 per cent in May.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BHP BILLITON LIMITED – ASX BHP, SELECT HARVESTS LIMITED – ASX SHV, INCITEC PIVOT LIMITED – ASX IPL, RIO TINTO LIMITED – ASX RIO, NEWCREST MINING LIMITED – ASX NCM, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WOOLWORTHS LIMITED – ASX WOW, WESFARMERS LIMITED – ASX WES, TELSTRA CORPORATION LIMITED – ASX TLS, FLEXIGROUP LIMITED – ASX FXL, ARISTOCRAT LEISURE LIMITED – ASX ALL, TRANSURBAN GROUP LIMITED – ASX TCL, MORGANS FINANCIAL LIMITED, AUSTRALIAN BUREAU OF STATISTICS, RESERVE BANK OF AUSTRALIA, BLOOMBERG LP, STANDARD AND POOR’S ASX ALL ORDINARIES INDEX

Forget May, June’s the time to sell and go away

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 26 : 1-Jun-16

The Australian sharemarket has gained nearly 10 per cent since 11 April 2016, which equates to more than 450 points. However, fund managers do not expect the recent rally to be sustained in June, citing factors such as the prospect of an interest rate rise in the US in coming months. Tax loss selling and portfolio rebalancing in the lead-up to the end of the financial year will also influence the near-term direction of the market.

CORPORATES
UBS GLOBAL ASSET MANAGEMENT (AUSTRALIA) LIMITED, PEAK ASSET MANAGEMENT PTY LTD, OPHIR ASSET MANAGEMENT PTY LTD, BELL POTTER SECURITIES LIMITED, CSL LIMITED – ASX CSL, NEWCREST MINING LIMITED – ASX NCM, UNITED STATES. FEDERAL RESERVE BOARD, LIQUEFIED NATURAL GAS LIMITED – ASX LNG, CAPITOL HEALTH LIMITED – ASX CAJ, 1-PAGE LIMITED – ASX 1PG, CARDNO LAWSON TRELOAR PTY LTD, CUDECO LIMITED – ASX CDU