K64 Auxiliary Finance and Insurance Services

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

ASX ‘likely’ to choose a local chief executive

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Original article by Jessica Gardner, Ruth Liew
The Australian Financial Review – Page: 23 : 15-Apr-16

ASX Limited has posted a statutory profit of $A317.4m for the first nine months of 2015-16, which is 6.2 per cent higher than previously. The stock exchange operator will shortly appoint an executive search firm to find a successor to CEO Elmer Funke Kupper. ASX chairman Rick Holliday-Smith says the highly regulated nature of the Australian market means a local candidate will probably be preferred, but he has not ruled out an offshore hire if they have the right skills and experience.

CORPORATES
ASX LIMITED – ASX ASX, RUSSELL REYNOLDS ASSOCIATES INCORPORATED, RESERVE BANK OF AUSTRALIA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

Hard-charging miners push ASX over 5000

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Original article by Stephen Cauchi
The Australian Financial Review – Page: 28 : 14-Apr-16

The Australian sharemarket rallied on 13 April 2016, with the S&P/ASX 200 adding 1.6 per cent to close at 5,054.7. The Commonwealth Bank was 2.1 per cent higher at $A73.73 and BHP Billiton rose six per cent to end the session at $A17.92. Fortescue Metals Group rose 7.7 per cent to finish at $A3.19 and Bellamy’s Australia advanced 5.5 per cent to close at $A9.37.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, BELLAMY’S AUSTRALIA LIMITED – ASX BAL, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WESTPAC BANKING CORPORATION – ASX WBC, TELSTRA CORPORATION LIMITED – ASX TLS, BLACKMORES LIMITED – ASX BKL, MORGANS FINANCIAL LIMITED, ORGANISATION OF PETROLEUM EXPORTING COUNTRIES, STANDARD AND POOR’S ASX ALL ORDINARIES INDEX, STANDARD AND POOR’S 500 INDEX, TOKYO STOCK PRICE INDEX

Markets have gone a bit too quiet for some

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Original article by Vesna Poljak
The Australian Financial Review – Page: 26 : 1-Apr-16

Global financial market volatility has declined, as measured by the Chicago Board Options Exchange’s "fear index". However, Escala Partners’ Giselle Roux cautions investors to expect further volatility. She anticipates mixed fortunes in the upcoming US profit reporting season, while other factors that may weigh on market sentiment include the US presidential election and a UK referendum on staying in the European Union. Australia’s benchmark S&P/ASX 200 shed four per cent during the March 2016 quarter, or one per cent in US dollar terms.

CORPORATES
CHICAGO BOARD OPTIONS EXCHANGE VOLATILITY INDEX, ESCALA PARTNERS LIMITED, STANDARD AND POOR’S ASX 200 INDEX, DEUTSCHE BANK AG, GROUP OF TWENTY (G-20), UNITED STATES. FEDERAL RESERVE BOARD, BELL POTTER SECURITIES LIMITED

Morrison declares open season on ASX

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Original article by Patrick Durkin
The Australian Financial Review – Page: 44 : 31-Mar-16

Federal Treasurer Scott Morrison announced on 30 March 2016 that ASX Limited will no longer have a monopoly on clearing and settlement activities. Elmer Funke Kupper’s recent resignation as CEO of the stock exchange operator makes it ill-prepared for the coming changes. Morrison said no licences will be granted during a transition period. The ASX has therefore 18 months to prepare itself for a new regulatory regime.

CORPORATES
ASX LIMITED – ASX ASX, AUSTRALIA. DEPT OF THE TREASURY, CHI-X AUSTRALIA PTY LTD, TABCORP HOLDINGS LIMITED – ASX TAH, COUNCIL OF FINANCIAL REGULATORS, CONTANGO ASSET MANAGEMENT LIMITED, LONDON STOCK EXCHANGE, DEUTSCHE BOERSE, SOCIETE GENERALE SA, UNICREDIT SPA, CHICAGO MERCANTILE EXCHANGE, INTERCONTINENTAL EXCHANGE, SINGAPORE EXCHANGE LIMITED, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, TELSTRA CORPORATION LIMITED – ASX TLS, LONDON CLEARING HOUSE

Investors to get $9b dividend bonanza

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 15 & 20 : 31-Mar-16

Australian companies are expected to pay shareholders around $A19bn in interim dividends during March and April 2016. Fund managers estimate that almost $A9bn worth of dividends will be paid in the final week of March, including some $A3.4bn worth of dividends from the Commonwealth Bank. Meanwhile, CommSec’s Craig James warns that the current dividend payout ratio of 106.3 per cent of profits is not sustainable. Many shareholders are expected to reinvest their dividends in equities, particularly given the low returns from assets such as bonds.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, COMMONWEALTH SECURITIES LIMITED, STANDARD AND POOR’S ASX 200 INDEX, CREDIT SUISSE (AUSTRALIA) LIMITED, PLATYPUS ASSET MANAGEMENT PTY LTD, PERPETUAL LIMITED – ASX PPT, WESTPAC BANKING CORPORATION – ASX WBC

Dividend lure keeps capex hungry

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 27 : 30-Mar-16

Australia’s benchmark S&P/ASX 200 boasts a dividend yield of 4.98 per cent at present, and it is tipped to be 4.66 per cent for the 2016 calendar year. Yield-hungry investors continue to shun bonds in favour of equities, and Citigroup has suggested that this focus on yield is deterring companies from increasing their capital expenditure. Australian companies anticipate capex of $A124bn in 2015-16, and $A82.6bn in 2016-17.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, CITIGROUP PTY LTD, AUSTRALIAN BUREAU OF STATISTICS, UBS GLOBAL ASSET MANAGEMENT (AUSTRALIA) LIMITED

‘It’s not right, it’s unfair, it’s trial by media,’ says ASX CEO

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Original article by Perry Williams, Tony Boyd
The Australian Financial Review – Page: 1 & 2 : 22-Mar-16

ASX Limited chairman Rick Holliday-Smith will become acting CEO of the stock exchange operator following the resignation of Elmer Funke Kupper, who has been CEO for more than four years. Funke Kupper says he stepped down to protect the company’s integrity, adding that his priority is the Australian Federal Police’s investigation into allegations of corruption at Tabcorp when he was CEO. Funke Kupper has stressed that he has not been told that he is personally under investigation.

CORPORATES
ASX LIMITED – ASX ASX, TABCORP HOLDINGS LIMITED – ASX TAH, AUSTRALIAN FEDERAL POLICE, CAMBODIA. OFFICE OF THE PRIME MINISTER, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, McKINSEY AND COMPANY, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, RESERVE BANK OF AUSTRALIA, MACQUARIE GROUP LIMITED – ASX MQG, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION