Bulls prevail in new yearly high

Original article by Daniel Palmer
The Australian – Page: 18 : 22-Dec-16

The Australian sharemarket posted solid gains on 21 December 2016, with the S&P/ASX 200 adding 22.4 points to close at 5,613.5. BHP Billiton was one per cent higher at $A25.17 and Woodside Petroleum advanced 0.3 per cent to end the session at $A31.04. However, the Commonwealth Bank was 0.2 per cent lower at $A82.09 and Slater & Gordon shed 7.5 per cent to finish at $A0.24.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, BHP BILLITON LIMITED – ASX BHP, WOODSIDE PETROLEUM LIMITED – ASX WPL, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, SLATER AND GORDON LIMITED – ASX SGH, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, 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, QANTAS AIRWAYS LIMITED – ASX QAN, THE A2 MILK COMPANY LIMITED – ASX A2M, BELLAMY’S AUSTRALIA LIMITED – ASX BAL, IG MARKETS LIMITED, CMC MARKETS PTY LTD, STANDARD AND POOR’S ASX ALL ORDINARIES INDEX

Mortgage stress strikes bush, city amid fears of an interest rate hike

Original article by Michael Bennet
The Australian – Page: 13 & 18 : 21-Dec-16

Standard & Poor’s has reported that the number of Australian mortgage borrowers in arrear rose in October 2016. Digital Finance Analytics has identified the 20 postcodes across Australia that boast the highest level of mortgage stress. Many of these are in regional areas, although the list includes a number of suburbs in major capital cities. Martin North of DFA says the outlook for interest rates will determine whether there is an increase in home loan arrears and defaults. He anticipates that the cash rate will rise by 50 basis points in 2017.

CORPORATES
DIGITAL FINANCE ANALYTICS, STANDARD AND POOR’S FINANCIAL SERVICES LLC, RESERVE BANK OF AUSTRALIA, WESTPAC BANKING CORPORATION – ASX WBC, ALLIANCEBERNSTEIN HOLDING LP, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, BANK OF QUEENSLAND LIMITED – ASX BOQ, CLSA AUSTRALIA PTY LTD

Super trustees ‘fail to act’ on liquidity risks

Original article by Alice Uribe
The Australian Financial Review – Page: 17 : 21-Dec-16

The Australian Prudential Regulation Authority has expressed concern that many trustees of superannuation funds are not using the results of liquidity stress testing when making investment decisions. APRA has noted that while super funds have made progress with regard to liquidity stress testing, further improvement is needed. Rice Warner adds that Australia’s ageing population presents a major liquidity risk for super fund trustees.

CORPORATES
AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, RICE WARNER ACTUARIES PTY LTD

Buoyant stocks at high for the year

Original article by David Rogers, Chris Kohler
The Australian – Page: 13 & 18 : 21-Dec-16

The Australian sharemarket posted solid gains on 20 December 2016, with the S&P/ASX 200 adding 0.5 per cent to close at 5,591.1. The benchmark index has risen by 5.6 per cent so far in 2016, and it may be poised for its best performance in a calendar year since 2013. Credit Suisse expects the S&P/ASX 200 to top 6,000 points by the end of 2017. The firm also forecasts that Australian bond yields will rise further.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S ASX ALL ORDINARIES INDEX, CREDIT SUISSE (AUSTRALIA) LIMITED, MORGAN STANLEY AUSTRALIA LIMITED, FORTESCUE METALS GROUP LIMITED – ASX FMG, SOUTH32 LIMITED – ASX S32, ESTIA HEALTH LIMITED – ASX EHE, SIRTEX MEDICAL LIMITED – ASX SRX, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, RESERVE BANK OF AUSTRALIA, BLOOMBERG LP, TRANSURBAN GROUP LIMITED – ASX TCL, SYDNEY AIRPORT – ASX SYD

Charter Hall Retail REIT portfolio grows by $130m

Original article by Matthew Cranston
The Australian Financial Review – Page: 33 : 20-Dec-16

Charter Hall Retail REIT has reported that the value of its property portfolio increased by $A130 million, or 5.2 per cent, to $A2.695 billion. The portfolio weighted average capitalisation rate rose by 29 basis points to 6.71 per cent, from 6.42 per cent. Shopping Centres Australasia Property Group reported in mid-December 2016 that the value of its property portfolio increased by $A169.1 million. The total portfolio capitalisation rate improved by 51 basis points to 6.62 per cent.

CORPORATES
CHARTER HALL RETAIL REIT – ASX CQR, SHOPPING CENTRES AUSTRALASIA PROPERTY GROUP – ASX SCP

Super funds’ safe harbour ‘extraordinary’

Original article by Sally Patten
The Australian Financial Review – Page: 4 : 20-Dec-16

The Federal Government has proposed to protect superannuation funds from legal challenges when fund members claim that the fund did not meet their fiduciary duties. The intention of the Government is to encourage funds to offer more comprehensive retirement income products (CIPRs). Michelle Levy, a partner at law firm Allens, says it would be inappropriate to offer a safe harbour solely for CIPRs.

CORPORATES
ALLENS, AUSTRALIA. DEPT OF FINANCE

ASX, dollar shrug off budget update

Original article by Zac Crellin, Jens Meyer, Patrick Commins
The Australian Financial Review – Page: 28 : 20-Dec-16

Figures in the Federal Government’s Mid-year Economic and Fiscal Outlook on 19 December 2016 made a positive impression on investors. The S&P/ASX 200 Index closed 29 points higher at 5,562 points on the same day while the All Ordinaries index rose 23 points to 5,612. The Australian dollar traded at $US0.729 in late trade. Shares in Seven West Media fell eight per cent, after revelations that CEO Tim Worner and a former executive assistant had a sexual relationship.

CORPORATES
STANDARD AND POOR’S ASX ALL ORDINARIES INDEX, STANDARD AND POOR’S ASX 200 INDEX, SEVEN WEST MEDIA LIMITED – ASX SWM, SYRAH RESOURCES LIMITED – ASX SYR, ORIGIN ENERGY LIMITED – ASX ORG, SANTOS LIMITED – ASX STO, AUSTRALIA. DEPT OF THE TREASURY

Lenders see sanity return to home loans

Original article by Michael Bennet
The Australian – Page: 15 & 18 : 19-Dec-16

Bendigo & Adelaide Bank CEO Mike Hirst notes that Australia’s four major banks are offering smaller discounts on mortgage interest rates than in the first half of 2016. He adds that the banks would have struggled to achieve a good return on these loans given the size of some discounts. Credit Union Australia CEO Rob Goudswaard expects a rise in mortgage interest rates after a period of intense competition. He also does anticipate a rise in the cash rate in 2017.

CORPORATES
BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, CREDIT UNION AUSTRALIA LIMITED, BANK OF QUEENSLAND LIMITED – ASX BOQ, LIBERTY FINANCIAL PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, RESERVE BANK OF AUSTRALIA, UNITED STATES. FEDERAL RESERVE BOARD, CREDIT SUISSE (AUSTRALIA) LIMITED, DIGITAL FINANCE ANALYTICS, DEUTSCHE BANK AG

IPO pipeline could start to run dry next year

Original article by Sally Patten, Joyce Moullakis, Jessica Sier
The Australian Financial Review – Page: 13 & 17 : 19-Dec-16

Fund managers are bearish about the outlook for Australia’s IPO market in 2017. Data from Dealogic shows that a total of $US4.3bn was raised via IPOs in 2016, compared with $US5.6bn in 2015. Wilson Asset Management’s Chris Stott notes that many IPOs in the second half of 2016 have underperformed, which he says reflects a decline in the quality of companies that are listing. Kogan.com and Inghams are among the IPOs that have underperformed. In contrast, Afterpay has gained around 180 per cent since its sharemarket debut in May.

CORPORATES
DEALOGIC (AUSTRALIA) PTY LTD, WILSON ASSET MANAGEMENT, KOGAN.COM LIMITED – ASX KGN, INGHAMS GROUP LIMITED – ASX ING, PROPERTYLINK GROUP LIMITED – ASX PLG, REDBUBBLE LIMITED – ASX RBL, SILVER HERITAGE GROUP LIMITED – ASX SVH, AFTERPAY HOLDINGS LIMITED – ASX AFY, WELLARD LIMITED – ASX WLD, BAKER AND McKENZIE, TPG CAPITAL LP, CYAN INVESTMENT MANAGEMENT PTY LTD, FORAGER FUNDS MANAGEMENT PTY LTD

M&A in 2017: All about break-ups, bear hugs and mining

Original article by Joyce Moullakis
The Australian Financial Review – Page: 15 & 21 : 16-Dec-16

Data from Dealogic shows that the total value of announced mergers and acquisitions in Australia has topped $US97bn ($A129bn) in 2016, compared with $US93.7bn in 2015. The total value of completed deals has fallen from $US92.7bn to $US82.9bn. Meanwhile, Simon Haddy and Tony Damian of law firm Herbert Smith Freehills expect more large-scale M&A deals in 2017 and strong takeover activity in the resources sector. They also forcast that North American suitors in particular will be active in the Australian market, and expect there to be more emphasis on consortium bids with a view to breaking up companies.

CORPORATES
DEALOGIC (AUSTRALIA) PTY LTD, HERBERT SMITH FREEHILLS PTY LTD, TATTS GROUP LIMITED – ASX TTS, TABCORP HOLDINGS LIMITED – ASX TAH, MACQUARIE GROUP LIMITED – ASX MQG, KKR AND COMPANY LP, NORTH HAVEN INFRASTRUCTURE PARTNERS, JP MORGAN AND COMPANY INCORPORATED, FIRST STATE SUPER, APN OUTDOOR GROUP LIMITED – ASX APO, OOH!MEDIA LIMITED – ASX OML, BAIN CAPITAL LLC, CAMP AUSTRALIA PTY LTD, UBS HOLDINGS PTY LTD, AUSGRID PTY LTD, PORT OF MELBOURNE, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, AUSTRALIA. TAKEOVERS PANEL