K64 Auxiliary Finance and Insurance Services

ASX loses $32b in worst day of 2016

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Original article by Stephen Cauchi
The Australian Financial Review – Page: 26 : 4-Feb-16

The Australian sharemarket retreated on 3 February 2016, with the S&P/ASX 200 shedding 2.3 per cent to close at 4,876.8. A continued decline in the price of Brent crude oil weighed on energy stocks and reduced the market’s capitalisation by $A32bn. The Commonwealth Bank was 2.9 per cent lower at $A75.73, BHP Billiton eased 4.4 per cent to finish at $A14.27 and Liquefied Natural Gas fell 8.5 per cent to end the session at $A0.59.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BHP BILLITON LIMITED – ASX BHP, LIQUEFIED NATURAL GAS LIMITED – ASX LNG, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC, WOODSIDE PETROLEUM LIMITED – ASX WPL, SANTOS LIMITED – ASX STO, OIL SEARCH LIMITED – ASX OSH, KAROON GAS AUSTRALIA LIMITED – ASX KAR, DEUTSCHE BANK AG, MORGANS FINANCIAL LIMITED, BP PLC, EXXONMOBIL CORPORATION, STANDARD AND POOR’S CORPORATION, CLYDESDALE BANK PLC, YORKSHIRE BANK PLC, ORGANISATION OF PETROLEUM EXPORTING COUNTRIES, WORLD BANK, BANK OF JAPAN, STANDARD AND POOR’S ASX ALL ORDINARIES INDEX, HANG SENG INDEX, NIKKEI 225 INDEX, SHANGHAI COMPOSITE INDEX

Investor sentiment hits a record low

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Original article by Ruth Liew
The Australian Financial Review – Page: 16 : 3-Feb-16

A survey by Investment Trends has found that the average investor expects the Australian sharemarket to gain just 1.2 per cent in 2016. However, Recep Peker of Investment Trends notes that 33 per cent of investors still intend to invest in equities. The survey also shows that 70 per cent of respondents have identified the outlook for the Chinese economy as their biggest concern, while the potential for another global financial crisis or market crash was cited by 54 per cent.

CORPORATES
INVESTMENT TRENDS PTY LTD, HLB MANN JUDD, RESERVE BANK OF AUSTRALIA, HSBC HOLDINGS PLC, SHANGHAI COMPOSITE INDEX, CSI 300 INDEX

Reporting season ups and downs

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Original article by Philip Baker
The Australian Financial Review – Page: 34 : 2-Feb-16

Australia’s benchmark S&P/ASX 200 Index has shed five per cent so far in 2016, and share price performances are likely to come under scrutiny during the February reporting season. Matt Ross of Goldman Sachs says price-earnings multiples are five per cent lower than they were in the lead-up to the August 2015 reporting season. He adds that growth in earnings-per-share is now at its lowest level since the global financial crisis.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, BEGA CHEESE LIMITED – ASX BGA, COLES GROUP LIMITED, MURRAY GOULBURN CO-OPERATIVE COMPANY LIMITED, MG UNIT TRUST – ASX MGC, REA GROUP LIMITED – ASX REA, ISENTIA GROUP LIMITED – ASX ISD, RAMSAY HEALTH CARE LIMITED – ASX RHC, CSL LIMITED – ASX CSL, CARSALES.COM LIMITED – ASX CAR, SEEK LIMITED – ASX SEK, ARB CORPORATION LIMITED – ASX ARB, TATTS GROUP LIMITED – ASX TTS, QUBE HOLDINGS LIMITED – ASX QUB, IRESS LIMITED – ASX IRE, PREMIER INVESTMENTS LIMITED – ASX PMV, HEALTHSCOPE LIMITED – ASX HSO, TABCORP HOLDINGS LIMITED – ASX TAH, TRADE ME GROUP LIMITED – ASX TME, BRAMBLES LIMITED – ASX BXB, MYOB GROUP LIMITED – ASX MYO, WESFARMERS LIMITED – ASX WES, SELECT HARVESTS LIMITED – ASX SHV, DOMINO’S PIZZA ENTERPRISES LIMITED – ASX DMP, JB HI-FI LIMITED – ASX JBH, SONIC HEALTHCARE LIMITED – ASX SHL, VOCUS COMMUNICATIONS LIMITED – ASX VOC, CHALLENGER LIMITED – ASX CGF, MONADELPHOUS GROUP LIMITED – ASX MND

Small caps tipped to lift tough reporting season

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 13 & 22 : 1-Feb-16

The consensus of analysts is that the Australian sharemarket’s earnings per share will decline by six per cent in the February 2016 reporting season. However, a 45.5 per cent fall in earnings per share is forecast for the resources sector. Donald Williams of Platypus Asset Management is bearish about the outlook for the sector, warning that commodity prices are unlikely to rebound for several years. Meanwhile, Morgan Stanley expects stocks outside the top 20 to perform the best.

CORPORATES
PLATYPUS ASSET MANAGEMENT PTY LTD, MORGAN STANLEY AUSTRALIA LIMITED, CITIGROUP PTY LTD, STANDARD AND POOR’S ASX 200 INDEX, BENNELONG AUSTRALIAN EQUITY PARTNERS PTY LTD, BHP BILLITON LIMITED – ASX BHP, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, ORIGIN ENERGY LIMITED – ASX ORG, WORLEYPARSONS LIMITED – ASX WOR, AMCOR LIMITED – ASX AMC, ANSELL LIMITED – ASX ANN, MACQUARIE GROUP LIMITED – ASX MQG, COCA-COLA AMATIL LIMITED – ASX CCL, INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG, MANTRA GROUP LIMITED – ASX MTR, AVEO GROUP – ASX AOG, BURSON GROUP LIMITED – ASX BAP, CSG LIMITED – ASX CSV, TELSTRA CORPORATION LIMITED – ASX TLS, TABCORP HOLDINGS LIMITED – ASX TAH, REA GROUP LIMITED – ASX REA, GENWORTH MORTGAGE INSURANCE AUSTRALIA LIMITED – ASX GMA, UNITED STATES. FEDERAL RESERVE BOARD

Resources sector delivers top stock picks for the bold

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Original article by Simon Evans
The Australian Financial Review – Page: 26 : 29-Jan-16

Credit Suisse has identified Kula Gold as the Australian-listed stock that it expects to perform the best in 2016, forecasting a return of 362 per cent. This based on an analysis of 180 stocks. The other five stocks that Credit Suisse expects to achieve the highest returns for the calendar year are Altona Mining, WorleyParsons, Whitehaven Coal, Bradken and Senex Energy. Meanwhile, Brambles and Evolution Mining are among the stocks that are tipped to underperform.

CORPORATES
CREDIT SUISSE (AUSTRALIA) LIMITED, KULA GOLD LIMITED – ASX KGD, ALTONA MINING LIMITED – ASX AOH, WORLEYPARSONS LIMITED – ASX WOR, WHITEHAVEN COAL LIMITED – ASX WHC, BRADKEN LIMITED – ASX BKN, SENEX ENERGY LIMITED – ASX SXY, BRAMBLES LIMITED – ASX BXB, EVOLUTION MINING LIMITED – ASX EVN, PACIFIC ROAD CAPITAL MANAGEMENT PTY LTD, FRANKLIN TEMPLETON ASSET MANAGEMENT LIMITED, OZ MINERALS LIMITED – ASX OZL, TRANSURBAN GROUP LIMITED – ASX TCL, PACIFIC EQUITY PARTNERS PTY LTD, BAIN CAPITAL LLC

Future Fund shifts to 20pc cash weighting as global risks grow

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Original article by Jonathan Shapiro
The Australian Financial Review – Page: 15 & 18 : 28-Jan-16

The Australian Government’s Future Fund reduced its investment portfolio’s equities holdings from 39 per cent to 31 per cent in 2015. The fund has in turn lifted its exposure to cash holdings to around 20 per cent, or $A24.4bn. CEO David Neal says the fund has taken into account the high-risk global environment and the low yields that currently prevail. The fund posted a return of 8.4 per cent for calendar 2015, although its return for the second half was one per cent.

CORPORATES
AUSTRALIA. FUTURE FUND MANAGEMENT AGENCY, CHANT WEST FINANCIAL SERVICES PTY LTD

AFIC hunts for quality mid-cap investments

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Original article by Ruth Liew
The Australian Financial Review – Page: 17 : 21-Jan-16

The Australian Foundation Investment Company has posted a 2015-16 interim profit of $A145.5m, which is 10.3 per cent higher than previously. The listed investment company’s revenue was 7.2 per cent higher at $A156.6m, although its investment portfolio generated a loss of 1.3 per cent for the half-year. The group has reduced its exposure to large banks and retailers, and increased its holdings of stocks such as Qube Holdings, Suncorp Group and Treasury Wine Estates.

CORPORATES
AUSTRALIAN FOUNDATION INVESTMENT COMPANY LIMITED – ASX AFI, QUBE HOLDINGS LIMITED – ASX QUB, SUNCORP GROUP LIMITED – ASX SUN, TREASURY WINE ESTATES LIMITED – ASX TWE, HEALTHSCOPE LIMITED – ASX HSO, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, WESFARMERS LIMITED – ASX WES, WOOLWORTHS LIMITED – ASX WOW, CHALLENGER LIMITED – ASX CGF, MACQUARIE GROUP LIMITED – ASX MQG, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, MAINFREIGHT LIMITED, INTEGRAL DIAGNOSTICS LIMITED – ASX IDX, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, OIL SEARCH LIMITED – ASX OSH, SANTOS LIMITED – ASX STO, STANDARD AND POOR’S ASX 200 ACCUMULATION INDEX, UNITED STATES. FEDERAL RESERVE BOARD

APN raises guidance 56pc as funds forge ahead

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Original article by Michael Bleby
The Australian Financial Review – Page: 31 : 19-Jan-16

APN Property Group has revised its full-year earnings guidance. The Australian-listed real estate investment fund stated on 18 January 2016 that its operating earnings for the year would be between $A0.032 and $A0.035 per share, compared with a prediction of earnings of $A0.02 and $A0.023 per share, made at the AGM in November 2015.

CORPORATES
APN PROPERTY GROUP LIMITED – ASX APD, INDUSTRIA REIT FUND – ASX IDR, GENERATION HEALTHCARE REIT – ASX GHC, GROCON PTY LTD, WESTPAC BANKING CORPORATION – ASX WBC, HIGH COURT OF AUSTRALIA

ASX drops, bounces back from early low

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Original article by Stephen Cauchi
The Australian Financial Review – Page: 26 : 19-Jan-16

The S&P/ ASX 200 index fell 0.7 per cent on 18 January 2016, closing at 4,858.7 points. The energy sector performed poorly, declining 3.4 per cent, but gains were made in sectors such as consumer, industrial and telecommunications. Woolworths rose 4.4 per cent to $A23.65 after announcing it would exit its home improvement business Masters.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, WOOLWORTHS LIMITED – ASX WOW, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD, AURORA FUNDS MANAGEMENT LIMITED, SANTOS LIMITED – ASX STO, WOODSIDE PETROLEUM LIMITED – ASX WPL, BHP BILLITON LIMITED – ASX BHP, OIL SEARCH LIMITED – ASX OSH, TELSTRA CORPORATION LIMITED – ASX TLS, WESTPAC BANKING CORPORATION – ASX WBC, LOWE’S COMPANIES INCORPORATED, WESFARMERS LIMITED – ASX WES, HOME RETAIL GROUP PLC, HOMEBASE, BUNNINGS GROUP LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Property proves winner for fundies

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Original article by Duncan Hughes
The Australian Financial Review – Page: 31 : 19-Jan-16

Australian real estate investment trusts (A-REITs) generated 14 per cent in total return in 2015, according to investment bank JP Morgan. Wholesale property funds and direct property returned about 12 per cent. Tim Mackay, an adviser with Quantum Financial, expects the A-REIT sector to perform well in 2016. Investors are likely to be attracted to the sector by its dividend yield of around five per cent.

CORPORATES
JP MORGAN AUSTRALIA LIMITED, QUANTUM FINANCIAL SERVICES, LEND LEASE GROUP LIMITED – ASX LLC, AVEO GROUP – ASX AOG, STANDARD AND POOR’S ASX 200 A-REIT INDEX