K64 Auxiliary Finance and Insurance Services

Time ripe for buybacks: analyst

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 25 : 25-May-16

Analysis by Credit Suisse shows that S&P/ASX 200 companies that have undertaken share buybacks have achieved an annual return of 9.3 per cent since 2002. In contrast, companies that have not repurchased shares have delivered a return of negative 1.9 per cent over this period. Hasan Tevfik of Credit Suisse argues that more listed companies should capitalise on the low cost debt to undertake buybacks or mergers and acquisitions. He adds that the falling cost of debt in China is likely to prompt more Chinese companies to pursue acquisitions in Australia.

CORPORATES
CREDIT SUISSE (AUSTRALIA) LIMITED, STANDARD AND POOR’S ASX 200 INDEX, QANTAS AIRWAYS LIMITED – ASX QAN, CSR LIMITED – ASX CSR, JAMES HARDIE INDUSTRIES PLC – ASX JHX, BELL POTTER SECURITIES LIMITED, CSL LIMITED – ASX CSL

Even lower interest rates keep dividends attractive

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

Tim Baker of Deutsche Bank expects the high dividend yields of Australian equities to remain attractive to investors, amid historically low interest rates and bond yields. He notes that Australian dividend yields have averaged about five per cent over the long-term, which is significantly higher than the yield on international shares. He adds that Australian superannuation funds may reduce their exposure to cash products in favour of shares, while banks’ high yields may attract both local and offshore investors.

CORPORATES
DEUTSCHE BANK AG, UBS HOLDINGS PTY LTD, RESERVE BANK OF AUSTRALIA, UNITED STATES. FEDERAL RESERVE BOARD, AUSTRALIA. FUTURE FUND MANAGEMENT AGENCY, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, ORICA LIMITED – ASX ORI, CSR LIMITED – ASX CSR, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, STOCKLAND – ASX SGP, PACT GROUP HOLDINGS LIMITED – ASX PGH, ALUMINA LIMITED – ASX AWC, MACQUARIE GROUP LIMITED – ASX MQG, SYDNEY AIRPORT – ASX SYD, APA GROUP – ASX APA, SUNCORP GROUP LIMITED – ASX SUN

IPOs bigger but small caps outperform

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 29 : 17-May-16

Data from fintech group OnMarket BookBuilds shows that 27 per cent of the 94 new listings on the Australian sharemarket in 2015 were technology companies, compared with just four of the 97 IPOs in 2010. In contrast, the number of IPOs in the energy and resources sector fell from 72 in 2010 to just four in 2015. Meanwhile, the number of companies being listed by private equity firms has fallen from 22 per cent of IPOs in 2014 to just six per cent in 2015.

CORPORATES
ON-MARKET BOOKBUILDS PTY LTD, WISETECH GLOBAL LIMITED – ASX WTC, AFTERPAY HOLDINGS LIMITED – ASX AFY, REDBUBBLE LIMITED – ASX RBL, DICK SMITH HOLDINGS LIMITED – ASX DSH

Finding the best return in a low-return world

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 28 : 17-May-16

Research by Societe Generale’s global asset allocation strategy team has concluded that investors can expect an annualised total return of 5-7 per cent from the majority of developed equity markets in the medium- to long-term. The research also suggests that emerging market equities and bonds are likely to deliver the best returns, with Societe Generale preferring bonds issued by India. However, the group says Australian investors should favour shares rather than bonds.

CORPORATES
SOCIETE GENERALE SA

Companies need to come up with growth strategies

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Original article by Philip Baker
The Australian Financial Review – Page: 26 : 13-May-16

Many Australian-listed companies have prioritised dividend yields in recent years, rather than investing in growth strategies. However, Macquarie Securities’ Jason Todd believes that investors are poised to reward companies that pursue growth via strategies such as acquisitions and capital expenditure. He identifies a number of stocks that could benefit from a growth strategy, including Transurban Group, Wesfarmers, Amcor, Carsales.com, CSL and Orora.

CORPORATES
MACQUARIE SECURITIES PTY LTD, TRANSURBAN GROUP LIMITED – ASX TCL, WESFARMERS LIMITED – ASX WES, AMCOR LIMITED – ASX AMC, CARSALES.COM LIMITED – ASX CAR, CSL LIMITED – ASX CSL, ORORA LIMITED – ASX ORA, ASCIANO LIMITED – ASX AIO, ASX LIMITED – ASX ASX, WOOLWORTHS LIMITED – ASX WOW, DOMINO’S PIZZA ENTERPRISES LIMITED – ASX DMP, SEEK LIMITED – ASX SEK, INCITEC PIVOT LIMITED – ASX IPL, TREASURY WINE ESTATES LIMITED – ASX TWE, RAMSAY HEALTH CARE LIMITED – ASX RHC

Nikkei, banks rally lifts ASX to a 2016 high

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Original article by Stephen Cauchi
The Australian Financial Review – Page: 26 : 11-May-16

The Australian sharemarket posted solid gains on 10 May 2016, with the S&P/ASX 200 adding 0.4 per cent to close at 5,342.8, which is its highest level for the year to date. The Commonwealth Bank was 2.9 per cent higher at $A78 and Qantas advanced 2.4 per cent to end the session at $A3.41. However, Rio Tinto eased 2.9 per cent to finish at $A45.40 and Sims Metal Management shed 10.1 per cent to close at $A8.45.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, QANTAS AIRWAYS LIMITED – ASX QAN, RIO TINTO LIMITED – ASX RIO, SIMS METAL MANAGEMENT LIMITED – ASX SGM, BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, WOODSIDE PETROLEUM LIMITED – ASX WPL, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, MACQUARIE GROUP LIMITED – ASX MQG, TELSTRA CORPORATION LIMITED – ASX TLS, SCENTRE GROUP – ASX SCG, LEND LEASE GROUP LIMITED – ASX LLC, VICINITY CENTRES – ASX VCX, INCITEC PIVOT LIMITED – ASX IPL, BLUESCOPE STEEL LIMITED – ASX BSL, MORGANS FINANCIAL LIMITED, IG MARKETS LIMITED, STANDARD AND POOR’S ASX ALL ORDINARIES INDEX, NIKKEI 225 INDEX

Investors to get lead on smart play for May

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Original article by Jessica Sier
The Australian Financial Review – Page: 27 : 3-May-16

The Australian sharemarket gained 3.3 per cent in April 2016, but historical analysis shows that it has lost ground in the month of May in six of the last eleven years. A number of factors may influence the direction of the sharemarket in May, including the release of interim financial results in the banking sector, the outlook for commodity prices and the outcome of the Reserve Bank’s monthly monetary policy meeting.

CORPORATES
RESERVE BANK OF AUSTRALIA, WESTPAC BANKING CORPORATION – ASX WBC, STANDARD AND POOR’S ASX 200 INDEX, RIVKIN SECURITIES PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, WATERMARK FUNDS MANAGEMENT PTY LTD

IPOs reward wary investors

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Original article by Michael Bennet
The Australian – Page: 20 : 26-Apr-16

Some 13 companies debuted on the Australian sharemarket in the March 2016 quarter, with a total capitalisation of $A796m. A report from Deloitte notes that the 12 IPOs during the same period in 2015 were worth a combined $A754m. Meanwhile, new IPOs in the first quarter of 2016 posted an average gain of 7.6 per cent, while the benchmark S&P/ASX 200 shed four per cent. Afterpay, StatePlus and Reliance Worldwide Corporation are among the companies that are currently considering an IPO.

CORPORATES
DELOITTE TOUCHE TOHMATSU LIMITED, STANDARD AND POOR’S ASX 200 INDEX, AFTERPAY HOLDINGS LIMITED – ASX AFY, STATEPLUS, RELIANCE WORLDWIDE CORPORATION LIMITED – ASX RWC, BRAVURA SOLUTIONS LIMITED, SCOTTISH PACIFIC BUSINESS FINANCE PTY LTD, FASTACASH, CAMPERDOWN DAIRY INTERNATIONAL, DICK SMITH HOLDINGS LIMITED – ASX DSH, DEALOGIC (AUSTRALIA) PTY LTD, ONEVIEW HEALTHCARE PLC – ASX ONE, DING SHENG XIN FINANCE COMPANY LIMITED – ASX DXF, WISETECH GLOBAL LIMITED – ASX WTC, GLOBAL FORTUNE INVESTMENT LIMITED – ASX GFI, JC INTERNATIONAL GROUP LIMITED – ASX JCI, CADENCE ASSET MANAGEMENT PTY LTD, CITIBANK PTY LTD, THOMSON REUTERS PLC, McGRATH LIMITED – ASX MEA, SPOTLESS GROUP HOLDINGS LIMITED – ASX SPO

Banks, property still the top investment picks

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Original article by Simon Evans
The Australian Financial Review – Page: 30 : 20-Apr-16

The Australian sharemarket has been trading within a range of 4,900 to 5,200 points in recent months. However, VISIS Private Wealth’s Chris Smith argues that investors should be focusing on the outlook for the market in the next 3-5 years, rather than its short-term performance. Smith says the nation’s four major banks should achieve good returns over the longer-term, while he is also upbeat about the long-term outlook for the residential and commercial property markets.

CORPORATES
VISIS PRIVATE WEALTH, STEPHAN STRATEGIC, RMIT UNIVERSITY, 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

Executives retain appetite for deals

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 15 : 18-Apr-16

A new report by law firm Herbert Smith Freehills and the research division of the Financial Times shows that takeovers remain on the agenda for many companies. The survey of senior executives found that 75 per cent of respondents who are based in Australia expect to pursue mergers and acquisitions in the next three years, although only 33 per cent expect to make acquisitions that will boost group revenue by at least five per cent.

CORPORATES
HERBERT SMITH FREEHILLS PTY LTD, FINANCIAL TIMES GROUP, DEALOGIC (AUSTRALIA) PTY LTD, ASCIANO LIMITED – ASX AIO, CBH LIMITED, INTRALINKS INCORPORATED