K64 Auxiliary Finance and Insurance Services

Lower test will add fuel to the fire for shareholder class actions

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Original article by John Emmering, Michael Legg
The Australian Financial Review – Page: 32 : 13-Mar-15

In most cases, shareholder class actions in Australia are based on alleging causation between losses incurred by shareholders and directors’ behaviour. Until now, Australian courts have required proof of individualised reliance. The Federal Court’s observations in the case against Babcock & Brown directors are likely to stimulate discussion of causality in class actions

CORPORATES
BABCOCK AND BROWN LIMITED, FEDERAL COURT OF AUSTRALIA, DOWNER EDI LIMITED – ASX DOW, ARASOR CORPORATION, UNIVERSITY OF NEW SOUTH WALES, JONES DAY

IPO wave may not be sustainable

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Original article by Larissa Nicholson
The Australian Financial Review – Page: 23 : 13-Mar-15

Seven companies debuted on the Australian sharemarket during the first two months of 2015. Deloitte’s Ian Turner notes that these stocks have collectively gained 23 per cent since their IPOs. The market boasted a total of 74 IPOs in 2014, which raised a combined $A26bn. Turner cautions that the IPO market may not match this performance in 2015, noting that the float market had been subdued prior to 2014

CORPORATES
DELOITTE TOUCHE TOHMATSU LIMITED, STANDARD AND POOR’S ASX 200 INDEX, APPEN LIMITED – ASX APX, MEDIBANK PRIVATE LIMITED – ASX MPL, HEALTHSCOPE LIMITED – ASX HSO

NAB leads $8b mortgage bond rush as investor demand builds

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Original article by Jonathan Shapiro
The Australian Financial Review – Page: 22 : 13-Mar-15

There has been a spike in activity in Australia’s residential mortgage-backed securities market in 2015, with issuance in the year to date topping $A8.2bn. This compares with just $A4.8bn during the same period in 2014. National Australia Bank is the latest player to venture into the securitisation market, issuing $A1.75bn worth of such securities with a triple-A rating

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BANK OF QUEENSLAND LIMITED – ASX BOQ, RESIMAC LIMITED, SUNCORP GROUP LIMITED – ASX SUN, CREDIT UNION AUSTRALIA LIMITED, MOODY’S INVESTORS SERVICE INCORPORATED

Good value still out there for the willing

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Original article by Jonathan Shapiro
The Australian Financial Review – Page: 23 : 12-Mar-15

There has been strong demand for corporate bonds among yield-seeking investors in recent years. Craig MacDonald of Standard Life says long-term, lower-rated corporate bonds still offer value for investors, and he is actively seeking to invest in such assets. However, he favours cash holdings at present rather than short-term bonds. MacDonald adds that Standard Life’s corporate bond fund is likely to achieve a lower return in 2015 than in 2014

CORPORATES
STANDARD LIFE PLC, CEMEX SA

Gordon offers to pump up to $100m into Ten

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Original article by Dominic White
The Australian Financial Review – Page: 15 & 20 : 11-Mar-15

The Ten Network’s largest shareholder, Bruce Gordon, opposes the broadcaster’s proposed acquisition by Foxtel and Discovery Communications. The 14.9 per cent stakeholder has instead approached Ten about investing an additional $A70m to $A100m in the network. This investment would be converted into equity in Ten if cross-media ownership laws are changed in the future. Gordon has also proposed being given two seats on Ten’s board

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN, WIN CORPORATION PTY LTD, FOXTEL MANAGEMENT PTY LTD, DISCOVERY COMMUNICATIONS INCORPORATED, CROWN RESORTS LIMITED – ASX CWN, NEWS CORPORATION – ASX NWS, HANCOCK PROSPECTING PTY LTD, CITIGROUP PTY LTD, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, TELSTRA CORPORATION LIMITED – ASX TLS, LAZARD ASSET MANAGEMENT PACIFIC COMPANY

Eight stocks stalling the ASX

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Original article by Misa Han
The Australian Financial Review – Page: 29 : 11-Mar-15

Australia’s S&P/ASX 200 has risen by 83 per cent in the last six years, while the S&P 500 has risen by 205 per cent. Evan Lucas of IG Markets says the local market has been affected by the slowing Chinese economy and the Australian economy’s shift from a focus on mining to services. Analysis shows that BHP Billiton, QBE Insurance Group, Newcrest Mining, OZ Minerals, Rio Tinto, Woodside Petroleum, BlueScope Steel and WorleyParsons have accounted for about 530 of the points shed by the S&P/ASX 200 since late 2007

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S 500 INDEX, IG MARKETS LIMITED, BHP BILLITON LIMITED – ASX BHP, QBE INSURANCE GROUP LIMITED – ASX QBE, NEWCREST MINING LIMITED – ASX NCM, OZ MINERALS LIMITED – ASX OZL, RIO TINTO LIMITED – ASX RIO, WOODSIDE PETROLEUM LIMITED – ASX WPL, BLUESCOPE STEEL LIMITED – ASX BSL, WORLEYPARSONS LIMITED – ASX WOR, MINERALS AND METALS GROUP, MEDIBANK PRIVATE LIMITED – ASX MPL

Chi-X labels ASX fee cuts ‘cynical’

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Original article by Shaun Drummond
The Australian Financial Review – Page: 15 : 10-Mar-15

Stock exchange operator ASX Limited proposes to reduce its fees for the clearing of equities from 1 July 2015, subject to a five-year extension of its existing monopoly. However, ASX’s actions have been criticised by Chi-X Australia CEO John Fildes, who has questioned why the offer was not made when the moratorium on competition in the sector commenced in 2013. Matthew Grounds of UBS says the Australian market is not large enough to support more than one equities clearing provider

CORPORATES
ASX LIMITED – ASX ASX, CHI-X AUSTRALIA PTY LTD, UBS HOLDINGS PTY LTD, COUNCIL OF FINANCIAL REGULATORS

CSL could be the next to reach the dizzy heights of $100 a share

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Original article by Misa Han
The Australian Financial Review – Page: 22 : 6-Mar-15

Shares in CSL are trading at $A92.18, and there is speculation that the stock will breach the $A100 level. Goldman Sachs is among the CSL bulls, with a share price target of $A107, although the average 12-month share price target of analysts polled by Bloomberg is just $A90.23. CSL shares rose above $A100 in September 2007, although the group then opted for a stock split. Wilson HTM Investment Group says it could do so again if the stock reaches $A100

CORPORATES
CSL LIMITED – ASX CSL, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, BLOOMBERG LP, WILSON HTM INVESTMENT GROUP LIMITED – ASX WIG, RIO TINTO LIMITED – ASX RIO, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, DEUTSCHE BANK AG, SONIC HEALTHCARE LIMITED – ASX SHL, RESMED INCORPORATED – ASX RMD, HEALTHSCOPE LIMITED – ASX HSO, ANSELL LIMITED – ASX ANN, NIB HOLDINGS LIMITED – ASX NHF, RAMSAY HEALTH CARE LIMITED – ASX RHC, COCHLEAR LIMITED – ASX COH, MEDIBANK PRIVATE LIMITED – ASX MPL, STANDARD AND POOR’S ASX 200 INDEX

Hedge funds line up takeover targets

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Original article by Bianca Hartge-Hazelman
The Australian Financial Review – Page: 23 : 6-Mar-15

Regal Funds Management’s Julian Barbarczy says a number of factors could result in higher-than-average mergers and acquisitions activity in Australia during 2015. He stresses that investors should decide to buy a stock after considering a range of factors rather than just its potential to become a takeover target. Recent strong share price gains have prompted speculation that suitors could soon be circling stocks such as Treasury Wine Estates, DUET Group, Syrah Resources, Challenger, Qube Holdings and Sirius Resources

CORPORATES
REGAL FUNDS MANAGEMENT PTY LTD, TREASURY WINE ESTATES LIMITED – ASX TWE, DUET GROUP – ASX DUE, SYRAH RESOURCES LIMITED – ASX SYR, CHALLENGER LIMITED – ASX CGF, QUBE HOLDINGS LIMITED – ASX QUB, SIRIUS RESOURCES NL – ASX SIR, CLIME ASSET MANAGEMENT PTY LTD, PM CAPITAL LIMITED, STANDARD AND POOR’S ASX 200 INDEX, TELSTRA CORPORATION LIMITED – ASX TLS, LIVEWIRE MARKETS, SPARK INFRASTRUCTURE GROUP – ASX SKI, APA GROUP – ASX APA, TOLL HOLDINGS LIMITED – ASX TOL, ASCIANO LIMITED – ASX AIO

SunRice targets ASX listing for capital

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Original article by Tim Binsted
The Australian Financial Review – Page: 29 : 5-Mar-15

SunRice Australia’s non-voting shares currently trade on the National Stock Exchange, but the group proposes to shift the B-Class shares to the ASX. Rice growers will continue to be the sole owners of voting stock should the proposal go ahead. Les Gordon, the president of the Ricegrowers Association of Australia, says growers have generally responded positively to the proposal

CORPORATES
SUNRICE AUSTRALIA PTY LTD, NATIONAL STOCK EXCHANGE OF AUSTRALIA LIMITED, ASX LIMITED – ASX ASX, MURRAY GOULBURN CO-OPERATIVE COMPANY LIMITED, FONTERRA CO-OPERATIVE GROUP LIMITED, MACQUARIE CAPITAL PTY LTD, RICEGROWERS’ ASSOCIATION OF AUSTRALIA INCORPORATED