Key predictor levels to keep a wary eye on

January 12, 2017roymorgansocial Leave a comment

Original article by Jessica Sier
The Australian Financial Review – Page: 25 : 12-Jan-17

There are a number of market thresholds that Australian investors should take into account when determining their portfolio strategy for 2017. These include the 20,000-point level for the Dow Jones Industrial Average and 6,000 points for Australia’s benchmark S&P/ASX 200, parity between the US dollar and the euro, $US60 a barrel for crude oil and a US bond yield of 2.6 per cent.

CORPORATES
DOW JONES INDUSTRIAL AVERAGE INDEX, STANDARD AND POOR’S ASX 200 INDEX, DOUBLELINE CAPITAL LP, CREDIT SUISSE (AUSTRALIA) LIMITED, ORGANISATION OF PETROLEUM EXPORTING COUNTRIES, THE GOLDMAN SACHS GROUP INCORPORATED, MICROSOFT CORPORATION, WALT DISNEY COMPANY, McDONALD’S CORPORATION

Mortgage payments steady as rates rise

January 11, 2017roymorgansocial Leave a comment

Original article by Michael Bennet
The Australian – Page: 17 : 11-Jan-17

Data from Deutsche Bank shows that Australians’ home loan repayments now comprise around 17 per cent of their income, which is consistent with the average over the last three decades. The figures also show that mortgage payment account for 63.6 per cent of Sydney borrowers’ weekly income, compared with 45.3 per cent in Melbourne and just 27.3 per cent in Perth. Meanwhile, Paul Bloxham of HSBC says the residential construction boom is nearing its peak.

CORPORATES
DEUTSCHE BANK AG, HSBC AUSTRALIA HOLDINGS PTY LTD, RESERVE BANK OF AUSTRALIA, AUSTRALIAN BUREAU OF STATISTICS, SUNCORP GROUP LIMITED – ASX SUN, ING DIRECT, DIGITAL FINANCE ANALYTICS

CBA pips BHP again and is tipped to be most traded in 2017

January 11, 2017roymorgansocial Leave a comment

Original article by Peter Ker
The Australian Financial Review – Page: 27 : 11-Jan-17

Some $A67.55bn worth of Commonwealth Bank shares changed hands in 2016, making it the most-traded Australian stock by value for the second consecutive year. Turnover of BHP Billiton shares totalled $A62.71, making it the second-most traded stock by value for the calendar year. Michael Heffernan of Phillip Capital says the banking major is likely to retain the title for some time. Telstra was the most-traded stock by volume for the seventh year in a row.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BHP BILLITON LIMITED – ASX BHP, PHILLIP CAPITAL LIMITED, TELSTRA CORPORATION LIMITED – ASX TLS, RIO TINTO LIMITED – ASX RIO, WESFARMERS LIMITED – ASX WES, MACQUARIE GROUP LIMITED – ASX MQG, NEWCREST MINING LIMITED – ASX NCM, FORTESCUE METALS GROUP LIMITED – ASX FMG, WOOLWORTHS LIMITED – ASX WOW, WOODSIDE PETROLEUM LIMITED – ASX WPL, SOUTH32 LIMITED – ASX S32, MIRVAC GROUP – ASX MGR, ALUMINA LIMITED – ASX AWC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC, LONDON STOCK EXCHANGE

NAB client data sent to adult website owner

January 10, 2017roymorgansocial Leave a comment

Original article by James Frost
The Australian Financial Review – Page: 17 : 10-Jan-17

An error at National Australia Bank (NAB) has resulted in the transfer of the personal details of 60,000 clients to David Weissenberg’s Real Assets Limited. The business owns domain names of a sexual nature such as sexpornhost.com, porncocktail.com, supersleazy.com and adultorientatedmaterial.com. NAB has reported that Weissenberg responded positively to the bank’s request to correct the error.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, REAL ASSETS LIMITED

Bleak year for Regal as returns in signature funds plunge 25pc

January 10, 2017roymorgansocial Leave a comment

Original article by Kylar Loussikian
The Australian – Page: 13 & 14 : 10-Jan-17

Regal Funds Management delivered disappointing returns for investors during the first 11 months of calendar 2016. Its Long Short Australian Equity Fund achieved a return of negative 7.37 per cent, while the Tasman Market Neutral Fund posted a return of negative 25.5 per cent. In contrast, the S&P/ASX 200 Accumulation Index posted a gain of more than seven per cent over the same period. Stocks held by Regal funds that underperformed in 2016 include Estia Health and Syrah Resources.

CORPORATES
REGAL FUNDS MANAGEMENT PTY LTD, STANDARD AND POOR’S ASX ACCUMULATION INDEX, ESTIA HEALTH LIMITED – ASX EHE, SYRAH RESOURCES LIMITED – ASX SYR, GREENCROSS LIMITED – ASX GXL, AUSTRALIANSUPER PTY LTD, TRIBECA INVESTMENT PARTNERS PTY LTD

Banks a mixed bag for investors

January 9, 2017roymorgansocial Leave a comment

Original article by Michael Bennet
The Australian – Page: 15 : 9-Jan-17

Morgan Stanley estimates that the ANZ Bank achieved a total shareholder return of 15.7 per cent in calendar 2016, ahead of National Australia Bank with 12.9 per cent. Westpac and the Commonwealth Bank boasted total shareholder returns of 3.2 per cent and 1.9 per cent respectively. The Commonwealth Bank was the top performer over a three-year period, with a TSR of 24.6 per cent. Meanwhile, Macquarie Group forecasts that National Australia Bank will perform best in 2017, with a TSR of 12.8 per cent.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, MORGAN STANLEY AUSTRALIA LIMITED, BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, BANK OF QUEENSLAND LIMITED – ASX BOQ, STANDARD AND POOR’S ASX 200 ACCUMULATION INDEX, REGAL FUNDS MANAGEMENT PTY LTD, BANK FOR INTERNATIONAL SETTLEMENTS. BASEL COMMITTEE ON BANKING SUPERVISION, MACQUARIE GROUP LIMITED – ASX MQG, MORNINGSTAR PTY LTD, CLSA AUSTRALIA PTY LTD, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED

$A one tweet away from a tumble, says Westpac

January 9, 2017roymorgansocial Leave a comment

Original article by Jonathan Shapiro
The Australian Financial Review – Page: 20 : 9-Jan-17

Modelling by Westpac suggests that the Australian dollar is about eight per cent below "fair value" at present. Westpac’s Robert Rennie warns that the dollar is vulnerable to another sell-off if US president-elect Donald Trump prompts a trade war with China. Meanwhile, Westpac expects commodity prices to fall in 2017. The bank also anticipates that Australia’s cash rate will remain unchanged while there will be two rate rises in the US.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, RESERVE BANK OF AUSTRALIA, UNITED STATES. FEDERAL RESERVE BOARD

Big four looking good on capital

January 5, 2017roymorgansocial Leave a comment

Original article by Tony Boyd
The Australian Financial Review – Page: 40 : 5-Jan-17

Australia’s major banks are unlikely to be affected by a dispute between the European banks and the Basel Committee on Banking Supervision. Predictably, the European banks are resisting the committee’s stricter capital requirements. The committee stated on 4 January 2017 that aid the regulatory reforms would be delayed as more time is needed to finalise some of their aspects. Unlike the European banks, the big four Australian banks have sufficient levels of common equity tier 1 capital to meet the committee’s new requirements.

CORPORATES
BANK FOR INTERNATIONAL SETTLEMENTS. BASEL COMMITTEE ON BANKING SUPERVISION, DEUTSCHE BANK AG, SOCIETE GENERALE SA, UNICREDIT SPA, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, FITCH INVESTORS SERVICE INCORPORATED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WESTPAC BANKING CORPORATION – ASX WBC, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

ANZ leads in the big four investing game

January 4, 2017roymorgansocial Leave a comment

Original article by Tony Boyd
The Australian Financial Review – Page: 40 : 4-Jan-17

The ANZ Banking Group is selling its 20 per cent stake in the Shanghai Rural Commercial Bank for $A1.8 billion. The transaction will have a positive effect on the bank’s common equity tier 1 capital ratio, raising it to the highest level among Australia’s big four banks. Shareholders have reasons to be satisfied. The bank is likely to increase its return on equity.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, SHANGHAI RURAL COMMERCIAL BANK, ESANDA FINANCE CORPORATION LIMITED, MACQUARIE GROUP LIMITED – ASX MQG, DBS GROUP HOLDINGS LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

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