K: Financial and Insurance Services

August cut tipped, but central bank headed for a pause

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Original article by Vesna Poljak
The Australian Financial Review – Page: 24 : 8-Jun-16

Inflation data to be released in late July 2016 may influence the Reserve Bank of Australia’s next move on interest rates, after the central bank left the cash rate on hold on 7 June. A survey by Bloomberg shows that most economists expect the cash rate to be 1.5 per cent by the June 2017 quarter. Jamieson Coote Bonds co-founder Charlie Jamieson expects a rate cut in August, adding that it may then opt to keep the cash rate on hold.

CORPORATES
RESERVE BANK OF AUSTRALIA, JAMIESONCOOTEBONDS PTY LTD, BLOOMBERG LP

Is the yield play back in vogue?

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Original article by Jessica Sier
The Australian Financial Review – Page: 25 : 8-Jun-16

The low interest rate environment has prompted strong support for high-yielding Australian stocks. However. investors recently began selling yield stocks amid expectations of several interest rate rises in the US during 2016. Citi Global Markets’ Karen Jorritsma notes that yield stocks will be back in favour following the release of the latest US jobs data, which will dampen expectations that the Federal Reserve will increase the cash rate.

CORPORATES
CITIGROUP PTY LTD, UNITED STATES. FEDERAL RESERVE BOARD, SCENTRE GROUP – ASX SCG, SYDNEY AIRPORT – ASX SYD, TRANSURBAN GROUP LIMITED – ASX TCL, APA GROUP – ASX APA, KATANA ASSET MANAGEMENT LIMITED, DEXUS PROPERTY GROUP – ASX DXS, MIRVAC GROUP – ASX MGR

NAB set to face claims of rate-rigging

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Original article by Sarah Thompson, Jemima Whyte, Anthony Macdonald
The Australian Financial Review – Page: 17 & 22 : 3-Jun-16

The Australian Securities & Investments Commission has a narrow time-frame to decide whether to pursue legal action against National Australia Bank for manipulating the bank bill swap rate. The alleged conduct occurred on 6 June 2010, which means ASIC must commence legal proceedings within days under the statute of limitations. Westpac and ANZ Bank have already been the subject of ASIC action over such conduct, while several investment banks have agreed to enforceable undertakings.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, UBS AG, ROYAL BANK OF SCOTLAND GROUP PLC, BNP PARIBAS SA

Dobbed in, found guilty

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Original article by Misa Han
The Australian Financial Review – Page: 1 & 2 : 3-Jun-16

Former investment banker Oliver Curtis could be jailed for up to five years after being convicted of conspiracy to commit insider trading. The Australian Securities & Investments Commission had alleged that he profited by using market-sensitive information to trade contracts for difference in 2007 and 2008. Curtis had used inside information supplied by co-conspirator John Hartman, an equities dealer at Orion Asset Management. Hartman has served a 15-month jail term, and received a reduced sentence for providing evidence against Curtis.

CORPORATES
ORION ASSET MANAGEMENT (AUST) PTY LTD, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, MACQUARIE GROUP LIMITED – ASX MQG, LYNAS CORPORATION LIMITED – ASX LYC, CLIFFORD CHANCE

Coca-Cola Amatil tops 10 stocks to buy if June turns ugly

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Original article by Simon Evans
The Australian Financial Review – Page: 30 : 3-Jun-16

The Australian sharemarket has performed well since mid-April 2016, but some analysts believe that this may not be sustained. Tim Baker of Deutsche Bank has identified a number of defensive stocks that investors should consider if sentiment becomes bearish in June. They are Coca-Cola Amatil, Estia Health, Mirvac Group, DUET Group, AGL Energy, Suncorp Group, Medibank Private, Shopping Centres Australasia Property Group, Vicinity Centres and Healthscope.

CORPORATES
DEUTSCHE BANK AG, COCA-COLA AMATIL LIMITED – ASX CCL, ESTIA HEALTH LIMITED – ASX EHE, MIRVAC GROUP – ASX MGR, DUET GROUP – ASX DUE, AGL ENERGY LIMITED – ASX AGL, SUNCORP GROUP LIMITED – ASX SUN, MEDIBANK PRIVATE LIMITED – ASX MPL, SHOPPING CENTRES AUSTRALASIA PROPERTY GROUP – ASX SCP, VICINITY CENTRES – ASX VCX, HEALTHSCOPE LIMITED – ASX HSO

Retail investors face lockout from IPOs if proposals adopted

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Original article by Sally Patten
The Australian Financial Review – Page: 21 : 3-Jun-16

The ASX argues that proposed changes to listing rules are intended to enhance the Australian bourse’s reputation as a market of "quality and integrity". However, the Australian Shareholders’ Association is concerned that the changes outlined in a recent consultation paper will make it harder for retail investors to participate in IPOs. The ASX proposes to introduce a minimum free-float of 20 per cent and scale back the minimum number of shareholders a company must have at the time of its IPO.

CORPORATES
ASX LIMITED – ASX ASX, AUSTRALIAN SHAREHOLDERS’ ASSOCIATION, STANDARD AND POOR’S ASX 200 INDEX

Economists say growth stunner won’t stop RBA rate cut

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Original article by Jessica Sier
The Australian Financial Review – Page: 32 : 2-Jun-16

Deutsche Bank’s Adam Boyton says inflation will be a bigger influence on the Reserve Bank of Australia’s monetary policy deliberations than GDP data. New figures show that the economy expanded by a higher-than-expected 1.1 per cent in the March 2016 quarter, with year-on-year growth of 3.1 per cent. There is general consensus among economists that there will be at least one more interest rate cut in 2016, although Craig James of CommSec cautions that this could put more upward pressure on house prices.

CORPORATES
DEUTSCHE BANK AG. RESERVE BANK OF AUSTRALIA. COMMONWEALTH SECURITIES LIMITED. AUSTRALIAN BUREAU OF STATISTICS. NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

ANZ-Roy Morgan Australian Consumer Confidence – Consumers cringe as confidence drops to 113.2

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 31-May-16

The ANZ-Roy Morgan Consumer Confidence rating for Australia fell 2.2 per cent to 113.2 in the week ended 29 May 2016, partially reversing the 3.6 per cent increase over the previous four weeks. Confidence remains just above its long-run average (+0.4 per cent). The fall last week was largely driven by concerns about the economic outlook. Consumers’ views towards their current finances rose 0.7 per cent, but consumers’ views towards their future finances fell 4.7 per cent.

CORPORATES
ROY MORGAN RESEARCH LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

ASX posts best rise for May since 2005

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 26 : 1-Jun-16

The Australian sharemarket lost ground on 31 May 2016, with the S&P/ASX 200 shedding 0.5 per cent to close at 5,378.6. The Commonwealth Bank was one per cent lower at $A77.43 and BHP Billiton was down 0.8 per cent at $A19.08. However, Select Harvests advanced 6.7 per cent to end the session at $A7.15 and Incitec Pivot was up 2.1 per cent at $A3.45. The market gained 2.4 per cent in May.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BHP BILLITON LIMITED – ASX BHP, SELECT HARVESTS LIMITED – ASX SHV, INCITEC PIVOT LIMITED – ASX IPL, RIO TINTO LIMITED – ASX RIO, NEWCREST MINING LIMITED – ASX NCM, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WOOLWORTHS LIMITED – ASX WOW, WESFARMERS LIMITED – ASX WES, TELSTRA CORPORATION LIMITED – ASX TLS, FLEXIGROUP LIMITED – ASX FXL, ARISTOCRAT LEISURE LIMITED – ASX ALL, TRANSURBAN GROUP LIMITED – ASX TCL, MORGANS FINANCIAL LIMITED, AUSTRALIAN BUREAU OF STATISTICS, RESERVE BANK OF AUSTRALIA, BLOOMBERG LP, STANDARD AND POOR’S ASX ALL ORDINARIES INDEX

Forget May, June’s the time to sell and go away

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 26 : 1-Jun-16

The Australian sharemarket has gained nearly 10 per cent since 11 April 2016, which equates to more than 450 points. However, fund managers do not expect the recent rally to be sustained in June, citing factors such as the prospect of an interest rate rise in the US in coming months. Tax loss selling and portfolio rebalancing in the lead-up to the end of the financial year will also influence the near-term direction of the market.

CORPORATES
UBS GLOBAL ASSET MANAGEMENT (AUSTRALIA) LIMITED, PEAK ASSET MANAGEMENT PTY LTD, OPHIR ASSET MANAGEMENT PTY LTD, BELL POTTER SECURITIES LIMITED, CSL LIMITED – ASX CSL, NEWCREST MINING LIMITED – ASX NCM, UNITED STATES. FEDERAL RESERVE BOARD, LIQUEFIED NATURAL GAS LIMITED – ASX LNG, CAPITOL HEALTH LIMITED – ASX CAJ, 1-PAGE LIMITED – ASX 1PG, CARDNO LAWSON TRELOAR PTY LTD, CUDECO LIMITED – ASX CDU