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Deutsche says ASX set for strong recovery – and here’s what to buy

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Original article by Stephen Cauchi
The Australian Financial Review – Page: 29 : 1-Sep-15

Deutsche Bank writes in its latest report that a rally on the Australian stock exchange is quite possible if Australia manages to avoid a recession. The company advises investors to buy the big four banks, financial services companies, healthcare stocks, and shares in Harvey Norman, Echo Entertainment, Flight Centre, Boral, Fletcher Building, Stockland, REA Group, QBE and AMP.

CORPORATES
DEUTSCHE BANK AG, UBS HOLDINGS PTY LTD, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, ECHO ENTERTAINMENT GROUP LIMITED – ASX EGP, FLIGHT CENTRE TRAVEL GROUP LIMITED – ASX FLT, BORAL LIMITED – ASX BLD, FLETCHER BUILDING LIMITED – ASX FBU, STOCKLAND – ASX SGP, REA GROUP LIMITED – ASX REA, QBE INSURANCE GROUP LIMITED – ASX QBE, AMP LIMITED – ASX AMP, STANDARD AND POOR’S ASX 200 INDEX

Goldman tips high-yielding Australian stocks amid the turmoil

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 22 : 28-Aug-15

Goldman Sachs and Credit Suisse have identified high-yielding Australian equities that would be attractive additions to anyone’s portfolio. Goldman Sachs Asian equity analyst Timothy Moe favours Woolworths, QBE Insurance Group, Amcor, AGL Energy, APA Group, Sonic Healthcare, Coca-Cola Amatil and ALS. Credit Suisse advises investors to buy Asciano, ResMed, Harvey Norman and REA Group.

CORPORATES
GOLDMAN SACHS AUSTRALIA PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED, WOOLWORTHS LIMITED – ASX WOW, QBE INSURANCE GROUP LIMITED – ASX QBE, AMCOR LIMITED – ASX AMC, AGL ENERGY LIMITED – ASX AGL, APA GROUP – ASX APA, SONIC HEALTHCARE LIMITED – ASX SHL, COCA-COLA AMATIL LIMITED – ASX CCL, ALS LIMITED – ASX ALQ, ASCIANO LIMITED – ASX AIO, RESMED INCORPORATED – ASX RMD, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, REA GROUP LIMITED – ASX REA

Down one day … up the next but it’s not a crisis, say CEOs

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Original article by Vesna Poljak, Clancy Yeates, Jonathan Shapiro, Misa Han
The Australian Financial Review – Page: 1 : 26-Aug-15

The Australian economy is in a much better shape than the sharemarket would suggest. Investors seem to have overreacted to a slowdown in the Chinese economy. ANZ Banking Group CEO Mike Smith said on 25 August 2015 that China still has huge "potential". Paul Griffiths, chief investment officer for fixed income at Colonial First State, notes that panic among investors is limited to equities, with bonds remaining unaffected.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COLONIAL FIRST STATE GROUP LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, ASX LIMITED – ASX ASX, DOW JONES INDUSTRIAL AVERAGE INDEX, STANDARD AND POOR’S ASX 200 INDEX, AUSCAP ASSET MANAGEMENT PTY LTD, SHENZHEN COMPOSITE INDEX, SHANGHAI COMPOSITE INDEX, CITIGROUP PTY LTD

SMSFs told to hold their nerve and buy

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Original article by Jonathan Barrett
The Australian Financial Review – Page: 9 : 26-Aug-15

Self-managed superannuation funds have been advised to remain calm during a period of extreme volatility on the Australian sharemarket. Wayne Leggett, principal at Paramount Wealth Management in Perth, says the Australian economy is in a good shape. Australian stocks are still relatively cheap and there are many attractive buying opportunities.

CORPORATES
PARAMOUNT WEALTH MANAGEMENT, STANDARD AND POOR’S ASX 200 INDEX, SMSF ASSOCIATION, UBS HOLDINGS PTY LTD, HLB MANN JUDD

Goldman sees value as ASX faces worst month since 2012

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The Australian Financial Review – Page: 22 : 21-Aug-15

Goldman Sachs equity strategist Matthew Ross believes Australian stocks are now cheap by historical standards. The banks are particularly attractive as they are now trading on a forward price-earnings (PE) ratio of 12.5 times, compared with the industrial PE of 17.5 times earnings. Technical analysis of the Australian stock market suggests that the S&P/ASX 200 index can rise as much as 28 per cent from its current level.

CORPORATES
GOLDMAN SACHS AUSTRALIA PTY LTD, STANDARD AND POOR’S ASX 200 INDEX

Wobbles in equity markets make real estate more attractive

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Original article by Robert Harley
The Australian Financial Review – Page: 38 : 13-Aug-15

When equities become volatile, investors turn their attention to property which may not now produce attractive returns but at least offers a higher degree of safety. DEXUS Property Group CEO Darren Steinberg stresses "a really consistent performance" of Australian-listed real estate investment trusts (REITs). The REIT sector fell only 0.3 per cent over the last three months, compared with a decline of 5.9 per cent in the S&P/ASX 200 over the same period.

CORPORATES
DEXUS PROPERTY GROUP – ASX DXS, INVESTA PROPERTY GROUP, GIC AUSTRALIA PTY LTD, MORGAN STANLEY AUSTRALIA LIMITED, STANDARD AND POOR’S ASX 200 INDEX

ASX bounces back as buyers return to banks

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 30 : 11-Aug-15

The Australian sharemarket closed higher on 10 August 2015. The S&P/ASX 200 index climbed 0.6 per cent to 5,509.2 points, while the All Ordinaries gained 0.6 per cent to 5,504.9. The big four banks regained some of their recent losses, with shares in the ANZ Bank rising 1.5 per cent to $A30.60 and Commonwealth Bank closing up one per cent at $A82.14.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S ASX ALL ORDINARIES INDEX, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, CITI AUSTRALIA PTY LTD, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, IG MARKETS LIMITED, ST GEORGE BANK LIMITED, SHANGHAI COMPOSITE INDEX, JB HI-FI LIMITED – ASX JBH, WESFARMERS LIMITED – ASX WES, WOOLWORTHS LIMITED – ASX WOW, RIO TINTO LIMITED – ASX RIO, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP BILLITON LIMITED – ASX BHP

Speed urged on investment reform

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Original article by James Eyers
The Australian Financial Review – Page: 17 : 7-Aug-15

The Opposition has urged the Australian Government not to delay the changes that would enable the creation of "collective investment vehicles". The changes are necessary if Australian funds are to benefit from the liberalisation of funds management in Asia and the introduction of the Asian Region Funds Passport in 2016. Shadow treasurer Chris Bowen says the Australian Labor Party is willing to cooperate with the Government on this issue.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, FINANCIAL SERVICES COUNCIL, AUSTRALIAN LABOR PARTY, SCHRODER INVESTMENT MANAGEMENT AUSTRALIA LIMITED

Australia may miss out on global M&A frenzy

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 16 : 24-Jul-15

Some $US2.28trn ($A3.09trn) worth of global mergers and acquisitions were announced during the first half of 2015, according to data from Dealogic. This includes 31 deals worth at least $US10bn. However, M&A activity in Australia has totalled just $US56.9bn so far in 2015, and David Friedlander of law firm King & Wood Mallesons describes the level of local activity as "disappointing". Grant Chamberlain of Bank of America Merrill Lynch says five local deals worth at least $A5bn were announced during the first half.

CORPORATES
KING AND WOOD MALLESONS, BANK OF AMERICA AUSTRALIA LIMITED, MERRILL LYNCH (AUSTRALIA) PTY LTD, TOLL HOLDINGS LIMITED, ASCIANO LIMITED – ASX AIO, FEDERATION CENTRES – ASX FDC, NOVION PROPERTY GROUP, BROOKFIELD ASSET MANAGEMENT INCORPORATED, GREENHILL AND COMPANY, GRESHAM PARTNERS LIMITED

Large caps shine in under-loved index

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 23 : 24-Jul-15

Analysis by Morningstar shows that the Australian sharemarket is currently trading at a price/earnings ratio of 15.5. The market’s earnings yield is 6.5 per cent, while the yield on 10-year bonds is around three per cent. Morningstar believes that the local sharemarket still offers value, and it favours large-capitalisation stocks such as National Australia Bank, BHP Billiton, Veda Group, Santos and Goodman Group.

CORPORATES
MORNINGSTAR PTY LTD, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, BHP BILLITON LIMITED – ASX BHP, VEDA GROUP LIMITED – ASX VED, PLATINUM ASSET MANAGEMENT LIMITED – ASX PTM, GOODMAN GROUP – ASX GMG, SANTOS LIMITED – ASX STO, AWE LIMITED – ASX AWE, ALUMINA LIMITED – ASX AWC, ATLAS IRON LIMITED – ASX AGO, FORTESCUE METALS GROUP LIMITED – ASX FMG, ARRIUM LIMITED – ASX ARI, STANDARD AND POOR’S ASX 200 INDEX, AMP CAPITAL INVESTORS LIMITED, UNITED STATES. FEDERAL RESERVE BOARD