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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

Millionaires roll shrinks by 5000

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Original article by Ruth Liew
The Australian Financial Review – Page: 19 : 15-Feb-16

Data from Investment Trends shows that Australia boasted 440,000 individuals whose investable assets topped $A1m at the end of October 2015. This compares with 445,000 in 2014, while the combined assets of the nation’s millionaires has fallen from $A1.57trn to $A1.55trn. Investment Trends’ Irene Guiamatsia notes that property and direct ownership of shares accounts for two-thirds of the investment portfolios of most high net worth individuals.

CORPORATES
INVESTMENT TRENDS PTY LTD, RESERVE BANK OF AUSTRALIA, STANDARD AND POOR’S ASX 200 INDEX

Property returns trounce shares

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Original article by Simon Evans
The Australian Financial Review – Page: 29 : 11-Feb-16

The Australian sharemarket has delivered a total return of 58 per cent over the last decade. However, residential property prices in Melbourne and Sydney have risen by 92 per cent over the same period. Domain Group’s chief economist Andrew Wilson does not expect the housing market to enjoy such gains in the next decade, warning that growth is likely to be much lower. Perpetual’s Matt Sherwood says equities investors should also expect lower growth in dividends in the near-term.

CORPORATES
DOMAIN.COM.AU, PERPETUAL LIMITED – ASX PPT, STANDARD AND POOR’S ASX 200 INDEX, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

The ayes have it: companies wave goodbye to show-of-hands voting

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Original article by Andrew White
The Australian – Page: 21 : 10-Feb-16

The Australian Council of Superannuation Investors believes that companies should use a poll rather than the show-of-hands system to vote on resolutions at AGMs. It is estimated that about 20 per cent of Australia’s top 200 listed companies still use the traditional show-of-hands, although this methods is now used by less than 10 per cent of top-100 companies. Lobbying by TIAA-CREF has convinced many large companies that used a show-of-hands at their 2014 AGM to abandon the practice.

CORPORATES
AUSTRALIAN COUNCIL OF SUPERANNUATION INVESTORS INCORPORATED, TEACHERS INSURANCE AND ANNUITY ASSOCIATION – COLLEGE RETIREMENT EQUITIES FUND, AUSTRALIAN INSTITUTE OF COMPANY DIRECTORS, AUSTRALIA. CORPORATIONS AND MARKETS ADVISORY COMMITTEE

Sevior digs resources again but wary of BHP

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Original article by Matthew Smith
The Australian Financial Review – Page: 15 & 20 : 10-Feb-16

Cash holdings account for some $A1bn worth of the $A5bn-plus investment portfolio of Airlie Funds Management at present. Founder John Sevior is keen to return to the equities market when valuations fall further, and Airlie could potentially be fully invested again by the end of 2016. Sevior intends to gain exposure to resources stocks, having shunned the sector since 2012, but he has ruled out buying BHP Billiton’s shares unless its progressive dividend policy is scrapped.

CORPORATES
AIRLIE FUNDS MANAGEMENT PTY LTD, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, WOODSIDE PETROLEUM LIMITED – ASX WPL, OIL SEARCH LIMITED – ASX OSH, ORIGIN ENERGY LIMITED – ASX ORG, SANTOS LIMITED – ASX STO, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, DULUXGROUP LIMITED – ASX DLX, SUNCORP GROUP LIMITED – ASX SUN, PREMIER INVESTMENTS LIMITED – ASX PMV, HENDERSON GLOBAL INVESTORS LIMITED, HENDERSON GROUP PLC – ASX HGG, CALTEX AUSTRALIA LIMITED – ASX CTX, PERPETUAL INVESTMENTS