K64 Auxiliary Finance and Insurance Services

It’s Harry at No 1

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Original article by John Stensholt
The Australian Financial Review – Page: 1 & 2 : 27-May-16

Property developer Harry Triguboff has displaced Gina Rinehart as Australia’s wealthiest individual. Triguboff is ranked first on the 2016 "BRW" Rich 200 List, with estimated wealth of $A10.62bn. Anthony Pratt is the nation’s second-richest person, with a $A10.35bn fortune. Rinehart’s wealth has fallen from $A14.02bn in 2015 to just $A6.6bn, ranking her fourth. The combined wealth of the Rich 200 has risen by almost one per cent in 2016, to a record $A197.3bn. The list includes 53 billionaires, while 19 people appear on the exclusive list for the first time.

CORPORATES
MERITON APARTMENTS PTY LTD, WESTFIELD CORPORATION – ASX WFD, CHADSTONE SHOPPING CENTRE, BLACKMORES LIMITED – ASX BKL, WORLEYPARSONS LIMITED – ASX WOR

Capex collapse as mining investment boom unwinds

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Original article by Daniel Palmer
The Australian – Page: 31 : 27-May-16

The Australian Bureau of Statistics has reported that capital expenditure on buildings and equipment fell by 5.2 per cent in the March 2016 quarter, compared with expectations of a 3.5 per cent decline. Capex in the mining sector fell by 12 per cent and non-mining capex was down 0.4 per cent. Meanwhile, the latest figures show that capex is forecast to total $A89.2bn in 2016-17, compared with a previous forecast of $A82.6bn.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS, CAPITAL ECONOMICS LIMITED, COMMONWEALTH SECURITIES LIMITED

Trimmed down miners tipped as next hot sector

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 31 : 27-May-16

UBS Small Companies Fund portfolio managers Stephen Wood and David Haddad are upbeat about the outlook for smaller Australian-listed mining companies. They note that many small-capitalisation mining groups have significantly reduced their costs over the last five years, which has made them attractive to investors. UBS favours stocks such as Fortescue Metals Group, Sundance Resources, Whitehaven Coal, Galaxy Resources, Orocobre and Pilbara Minerals.

CORPORATES
UBS HOLDINGS PTY LTD, FORTESCUE METALS GROUP LIMITED – ASX FMG, SUNDANCE RESOURCES LIMITED – ASX SDL, WHITEHAVEN COAL LIMITED – ASX WHC, GALAXY RESEARCH AND PLANNING PTY LTD, OROCOBRE LIMITED – ASX ORE, PILBARA MINERALS LIMITED – ASX PLS, CITIGROUP PTY LTD

ASX earnings likely to get better, say fund managers

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 17 & 22 : 27-May-16

Australia’s benchmark S&P/ASX 200 Index has gained almost 10 per cent in the last seven weeks, prompting speculation as to whether the rally can be sustained. The market is now trading at a price-to-earnings ratio of about 16 times earnings, compared with its long-run average of around 14 times. However, Nader Naeimi of AMP Capital is upbeat about the earnings outlook for listed companies, and notes that even a modest increase in earnings will be sufficient to bolster the market.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, AMP CAPITAL INVESTORS LIMITED, BEL-RAY AUSTRALIA PTY LTD, MORGAN STANLEY AUSTRALIA LIMITED, FIDELITY INVESTMENTS AUSTRALIA LIMITED, CITIGROUP PTY LTD, EQUITY TRUSTEES LIMITED – ASX EQT

Negative yields could be on the way to Australia’s market

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Original article by Vesna Poljak, Jonathan Shapiro
The Australian Financial Review – Page: 21 & 26 : 26-May-16

The yield on Australian government bonds recently reached a record low of 2.2 per cent, and Arif Husain of T. Rowe Price has warned that yields may eventually fall into negative territory. The head of international fixed income says investors should consider whether bonds continue to provide the level of income and stability they require. He favour Serbian bonds for income and Swedish covered bonds for stability, with the latter hedged in Australian dollars.

CORPORATES
T ROWE PRICE GROUP INCORPORATED

Palmer and Packer up in top stocks

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Original article by John Stensholt
The Australian Financial Review – Page: 21 & 26 : 26-May-16

Reliance Worldwide Corporation chairman Jonathan Munz and WiseTech Global CEO Richard White will appear on the "BRW" Rich 200 List for the first time in 2016, with estimated wealth of $A1.07bn and $A657m respectively. Meanwhile, some members of the Rich List have increased their fortunes by investing in speculative resources stocks, including James Packer, Mark Creasy and Kerry Harmanis.

CORPORATES
RELIANCE WORLDWIDE CORPORATION LIMITED – ASX RWC, WISETECH GLOBAL LIMITED – ASX WTC, MOD RESOURCES LIMITED – ASX MOD, GASCOYNE RESOURCES LIMITED – ASX GCY, ALICANTO MINERALS LIMITED – ASX AQI, DE GREY MINING LIMITED – ASX DEG, BEADELL RESOURCES LIMITED – ASX BDR, MINERALOGY PTY LTD, CROWN RESORTS LIMITED – ASX CWN, PARADICE INVESTMENT MANAGEMENT PTY LTD, JUBILEE MINES NL, XSTRATA AG, BLACKMORES LIMITED – ASX BKL, ACONEX LIMITED – ASX ACX, SMART PARKING LIMITED – ASX SPZ, BELLAMY’S AUSTRALIA LIMITED – ASX BAL, MILLENNIUM MINERALS LIMITED – ASX MOY

Mid-cap returns surge 54pc in past five years

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Original article by Jessica Sier
The Australian Financial Review – Page: 24 : 25-May-16

Australia’s S&P/ASX MidCap 50 Index has gained nearly 14 per cent in 2016, while the benchmark S&P/ASX 200 has shed two per cent. Meanwhile, mid-capitalisation stocks have delivered total returns of 54 per cent over the last five years. While the benchmark index is heavily weighted toward banks and resources groups, the MidCap 50 includes a more diverse range of sectors. Treasury Wine Estates, Domino’s Pizza Enterprises and REA Group are among the top performers in the index over the last 12 months.

CORPORATES
STANDARD AND POOR’S ASX MIDCAP 50 INDEX, STANDARD AND POOR’S ASX 200 INDEX, TREASURY WINE ESTATES LIMITED – ASX TWE, DOMINO’S PIZZA ENTERPRISES LIMITED – ASX DMP, REA GROUP LIMITED – ASX REA, COMMONWEALTH SECURITIES LIMITED, HYPERION ASSET MANAGEMENT LIMITED, ARNHEM INVESTMENT MANAGEMENT PTY LTD, SPOTLESS GROUP HOLDINGS LIMITED – ASX SPO, PRIMARY HEALTH CARE LIMITED – ASX PRY, ANSELL LIMITED – ASX ANN

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