K64 Auxiliary Finance and Insurance Services

ASX200 payout slide set to dwarf counterparts

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Original article by Vesna Poljak
The Australian Financial Review – Page: 30 : 1-Mar-16

A number of companies in the benchmark S&P/ASX 200 have increased their dividends in 2015-16, despite the financial market volatility. However, Hasan Tevfik of Credit Suisse expects the combined dividend payout of S&P/ASX 200 companies to fall from $A79bn in 2014-15 to just $A73bn. Meanwhile, the total capital returned to shareholders will be boosted by share buybacks.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, CREDIT SUISSE (AUSTRALIA) LIMITED, BHP BILLITON LIMITED – ASX BHP, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Days of continuous dividend growth over

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 29 : 26-Feb-16

Australia’s top 200 stocks have recorded stronger growth in dividends per share than earnings per share in the last few years, but fiscal 2016 seems likely to see the situation reversed. Analysts attribute this to factors such as the abolition of the progressive dividend policies of both BHP Billiton and Rio Tinto, and expectations that the major banks’ dividend will be broadly in line with their previous payouts.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEXBHP BILLITON LIMITED – ASX BHPRIO TINTO LIMITED – ASX RIOCOMMONWEALTH BANK OF AUSTRALIA – ASX CBAWESTPAC BANKING CORPORATION – ASX WBCNATIONAL AUSTRALIA BANK LIMITED – ASX NABAUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZCITIGROUP PTY LTDGOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTDHENDERSON GLOBAL INVESTORS LIMITED

Resources uncertainty keeps ASX below 5000

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 33 : 25-Feb-16

Australia’s benchmark S&P/ASX 200 Index has failed to remain above the 5,000-point level so far in February 2016. The local market has been weighed down by continued weakness in the resources sector, while Julian Beaumont of Bennelong Australian Equity Partners adds that the market is likely to remain range-bound until concerns about the banking sector are alleviated. Meanwhile, Marcus Padley says any market rebound will be driven by an upturn in commodity prices.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, BENNELONG AUSTRALIAN EQUITY PARTNERS PTY LTD, PENGANA GLOBAL RESOURCES FUND, BHP BILLITON LIMITED – ASX BHP, UNITED STATES. FEDERAL RESERVE BOARD

Private equity floats lag for second year

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Original article by Vesna Poljak
The Australian Financial Review – Page: 17 : 23-Feb-16

New figures show that Australian IPOs in 2015 that were backed by private equity firms delivered an average return of 13.1 per cent. In contrast, the average return of IPOs that had no private equity involvement was 19.3 per cent. Private equity-backed IPOs have not outperformed since 2013, when they achieved an average return of 19.6 per cent. However, they have comfortably exceeded the performance of non-private equity IPOs over a three-year period.

CORPORATES
AUSTRALIAN PRIVATE EQUITY AND VENTURE CAPITAL ASSOCIATION LIMITED, NM ROTHSCHILD AUSTRALIA HOLDINGS PTY LTD, GATEWAY LIFESTYLE – ASX GTY, CBL CORPORATION LIMITED – ASX CBL, BESTON GLOBAL FOOD COMPANY LIMITED – ASX BFC, PEPPER GROUP LIMITED – ASX PEP, MYER HOLDINGS LIMITED – ASX MYR, DICK SMITH HOLDINGS LIMITED – ASX DSH, ECLIPX GROUP LIMITED – ASX ECX, ANCHORAGE CAPITAL PARTNERS PTY LTD, McALEESE LIMITED – ASX MCS

ASX cracks 5000 to hit three-week high

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Original article by Stephen Cauchi
The Australian Financial Review – Page: 32 : 23-Feb-16

The Australian sharemarket posted solid gains on 22 February 2016, with the S&P/ASX 200 adding one per cent to close at 5,001.2. The Commonwealth Bank advanced 1.1 per cent to end the session at $A74.24 and BHP Billiton was 3.4 per cent higher at $A17.18. Brambles rose by 8.5 per cent to finish at $A12 and NIB Holdings was up 7.3 per cent at $A3.52.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BHP BILLITON LIMITED – ASX BHP, BRAMBLES LIMITED – ASX BXB, NIB HOLDINGS LIMITED – ASX NHF, RIO TINTO LIMITED – ASX RIO, NEWCREST MINING LIMITED – ASX NCM, WOODSIDE PETROLEUM LIMITED – ASX WPL, SANTOS LIMITED – ASX STO, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, TELSTRA CORPORATION LIMITED – ASX TLS, BLUESCOPE STEEL LIMITED – ASX BSL, APN OUTDOOR GROUP LIMITED – ASX APO, ARRIUM LIMITED – ASX ARI, MORGANS FINANCIAL LIMITED, STANDARD AND POOR’S ASX ALL ORDINARIES INDEX, SHANGHAI COMPOSITE INDEX

Brokers confident of smooth shift to two-day settlements

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 21 : 22-Feb-16

Australia’s equities and debt markets are set to adopt a two-day settlement cycle on 7 March 2016. The ASX says that more than 100 market participants have indicated that they are prepared for the so-called T+2 system, which has been in test mode since August 2015. The New Zealand Exchange is also slated to make the transition on 7 March, while key Asian markets have either adopted T+2 or are planning to do so.

CORPORATES
ASX LIMITED – ASX ASX, CHI-X AUSTRALIA PTY LTD, NEW ZEALAND EXCHANGE LIMITED, COMMONWEALTH SECURITIES LIMITED, BNP PARIBAS EQUITIES (AUSTRALIA) LIMITED

M&A set to throw off the shackles

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Original article by Michael Bennet
The Australian – Page: 17 : 22-Feb-16

Data from Thomson Reuters shows that $US5.4bn ($A7.5bn) worth of mergers and acquisitions have been announced in Australia so far in 2016, compared with $US20.3bn at the same time in 2015. However, Herbert Smith Freehills partner Tony Damian expects M&A activity to improve, noting that a number of deals are in the pipeline. Freehills expects an increase in takeover activity in sectors such as financial services and resources. It also forecasts that private equity firms will be more active.

CORPORATES
THOMSON REUTERS PLC, HERBERT SMITH FREEHILLS PTY LTD, ASCIANO LIMITED – ASX AIO, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, CLYDESDALE BANK PLC, CREDIT SUISSE (AUSTRALIA) LIMITED, STANDARD AND POOR’S ASX 200 INDEX, OZFOREX GROUP LIMITED – ASX OFX, GREENCROSS LIMITED – ASX GXL, WESTERN UNITED LIMITED, TPG CAPITAL LP, THE CARLYLE GROUP, JAPAN POST, TOLL HOLDINGS LIMITED

Negative gearing cap tipped to push up rents

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Original article by James Eyers
The Australian Financial Review – Page: 19 : 19-Feb-16

Mortgage Choice has posted a 2015-16 interim net profit of $A10.1m, which is 12.4 per cent higher than previously. The mortgage broker’s revenue rose by 5.4 per cent to $A102.3m, and its loan book increased by 4.7 per cent to a record $A50.7bn. CEO John Flavell has warned that the Federal Government’s proposed changes to the negative gearing regime would result in rent increases, as it would reduce the pool of rental housing.

CORPORATES
MORTGAGE CHOICE LIMITED – ASX MOC, MACQUARIE GROUP LIMITED – ASX MQG, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, BANK FOR INTERNATIONAL SETTLEMENTS. BASEL COMMITTEE ON BANKING SUPERVISION, AUSTRALIAN LABOR PARTY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

Why this market isn’t like the bloodiest days of 2008

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 31 : 17-Feb-16

The slump in global sharemarkets in 2016 has prompted comparisons with the onset of the global financial crisis in 2008. However, analysis shows that many Australian blue-chip stocks remain significantly above the lows recorded at the height of the GFC. National Australia Bank is the only one of the "big four" whose share price had not reached its pre-GFC high when the market peaked in April 2015. In contrast, energy stocks – which generally rallied during the GFC – have fallen sharply since April.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, STANDARD AND POOR’S ASX 20 INDEX, CREDIT SUISSE (AUSTRALIA) LIMITED, LEHMAN BROTHERS INCORPORATED, CITIGROUP PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, ORIGIN ENERGY LIMITED – ASX ORG, SANTOS LIMITED – ASX STO, CSL LIMITED – ASX CSL, CARNEGIE ASSET MANAGEMENT FONDSMAEGLERSELSKAB AB

China fears greatly exaggerated, says Aviva

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Original article by Ruth Liew
The Australian Financial Review – Page: 30 : 16-Feb-16

The Chinese sharemarket was resilient on 15 February 2016, despite concern that it would fall sharply when trading resumed after the week-long holiday for the Lunar New Year. Meanwhile, Aviva Investors CEO Euan Munro has downplayed concerns about the outlook for the Chinese economy, noting that it is still growing despite its shift from a focus on commodities. However, he says the yuan could potentially fall by 15-20 per cent against the US dollar in the next several years.

CORPORATES
AVIVA INVESTORS, AVIVA PLC, STANDARD LIFE INVESTMENTS LIMITED, PEOPLE’S BANK OF CHINA, RESERVE BANK OF AUSTRALIA, SHANGHAI COMPOSITE INDEX