K: Financial and Insurance Services

ANZ-Roy Morgan Australian Consumer Confidence spikes to 118.8 – highest in 2 1/2 years

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 21-Jun-16

ANZ-Roy Morgan Australian Consumer Confidence rose 2.1 per cent to 118.8 in the week ending 19 June 2016, and it now stands at the highest level since November 2013. Good news released last week about the Australian labour market and the business sector is likely to have lifted sentiment. The increase in confidence was broad-based, with consumers’ views about their finances leading the gains. The indicator on "finances compared to a year ago" rose 3.1 per cent, and views towards "economic conditions in the next 12 months" increased by two per cent.

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

ASX rallies on signs of a shift in UK polls

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 30 : 21-Jun-16

The Australian sharemarket posted strong gains on 20 June 2016, with the S&P/ASX 200 adding 1.8 per cent to close at 5,256. Asian markets also rose in response to a poll which found that support is growing among British voters to remain in the European Union. Commonwealth Bank was three per cent higher at $A74.20 and BHP Billiton was up 4.4 per cent at $A18.87. However, Northern Star Resources was down 3.5 per cent at $A4.66 and Metcash shed 12.5 per cent to end the session at $A1.86.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BHP BILLITON LIMITED – ASX BHP, NORTHERN STAR RESOURCES LIMITED – ASX NST, METCASH LIMITED – ASX MTS, RIO TINTO LIMITED – ASX RIO, WOODSIDE PETROLEUM LIMITED – ASX WPL, ORIGIN ENERGY LIMITED – ASX ORG, 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, WOOLWORTHS LIMITED – ASX WOW, WESFARMERS LIMITED – ASX WES, EVOLUTION MINING LIMITED – ASX EVN, REGIS RESOURCES LIMITED – ASX RRL, MESOBLAST LIMITED – ASX MSB, HENDERSON GROUP PLC – ASX HGG, CYBG PLC – ASX CYB, CSL LIMITED – ASX CSL, COCHLEAR LIMITED – ASX COH, PATERSONS SECURITIES LIMITED, STANDARD AND POOR’S ASX ALL ORDINARIES INDEX, HANG SENG INDEX, NIKKEI 225 INDEX

Markets skittish as Brexit vote looms

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Original article by Jessica Sier
The Australian Financial Review – Page: 22 : 20-Jun-16

The UK’s referendum on membership of the European Union is expected to be a key focus for Australian investors in the week beginning 20 June 2016. However, Alex Holmes of Capital Economics says the global economy is unlikely to be significantly affected in the long-term if the UK votes to leave the EU. Investors will also be awaiting the release of the minutes from the Reserve Bank of Australia’s latest board meeting, as well as US economic data such as unemployment claims and oil inventories.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, CAPITAL ECONOMICS LIMITED, RESERVE BANK OF AUSTRALIA, UNITED STATES. FEDERAL RESERVE BOARD, UNITED STATES. SENATE COMMITTEE ON BANKING, HOUSING AND URBAN AFFAIRS, UNITED STATES. HOUSE OF REPRESENTATIVES COMMITTEE ON FINANCIAL SERVICES, RESERVE BANK OF INDIA, INDIA. PRIME MINISTER’S OFFICE

Early rally fades but Brexit fears remain

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Original article by Stephen Cauchi
The Australian Financial Review – Page: 28 : 17-Jun-16

The S&P/ASX200 index closed 0.02 per cent lower at 5,146.0 on 16 June 2016. It seems that investors are preoccupied with the possibility of Great Britain leaving the European Union. A referendum on the issue will be held on 23 June 2016. Crown Resorts’ demerger plans were welcomed by investors who pushed the stock up by 13.2 per cent to $A12.75. Gold stocks performed well, with Newcrest Mining gaining 2.9 per cent to $A22.54, Evolution Mining rising 4.7 per cent to $A2.43, and Northern Star Resources climbing 5.1 per cent to $A5.09.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, CROWN RESORTS LIMITED – ASX CWN, NEWCREST MINING LIMITED – ASX NCM, EVOLUTION MINING LIMITED – ASX EVN, NORTHERN STAR RESOURCES LIMITED – ASX NST, BANK OF JAPAN, RIO TINTO LIMITED – ASX RIO, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, BHP BILLITON LIMITED – ASX BHP, UNITED STATES. FEDERAL RESERVE BOARD, MELCO CROWN ENTERTAINMENT LIMITED

Stocks most at risk if Britain leaves the EU

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Original article by Jessica Sier
The Australian Financial Review – Page: 27 : 16-Jun-16

Australian-listed companies that derive some of their earnings in the British pound may be affected if the UK opts to exit the European Union. Henderson Group has already been heavily sold down in the lead-up to the referendum, while other stocks that could potentially fall include CYBG and Westfield Corporation. However, Paul Taylor of Fidelity says a "Brexit" would result in a global sell-off, rather than the targeting of individual stocks.

CORPORATES
HENDERSON GROUP PLC – ASX HGG, CYBG PLC – ASX CYB, WESTFIELD CORPORATION – ASX WFD, COMPUTERSHARE LIMITED – ASX CPU, IRESS LIMITED – ASX IRE, FIDELITY INVESTMENTS AUSTRALIA LIMITED, CLYDESDALE BANK PLC, YORKSHIRE BANK PLC, UBS HOLDINGS PTY LTD

Shares could tumble back through 5000 barrier, charts suggest

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Original article by Stephen Cauchi
The Australian Financial Review – Page: 26 : 16-Jun-16

The Australian sharemarket has shed around four per cent since reaching 5,400 points in late May 2016, and technical analysis suggests that the S&P/ASX 200 could test the 5,000-point level. Angela Mangan of QMG says 5,300 was the benchmark index’s most recent technical support level. Angus Nicholson of IG Markets says 5,000 will become the next technical support level if the index falls below 5,200, and he notes the psychological importance of the 5,000-point level to investors.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, QMG PTY LTD, IG MARKETS LIMITED, DOW JONES INDUSTRIAL AVERAGE INDEX, FTSE 100 INDEX, EURO STOXX 50 INDEX, DEUTSCHER AKTIEN INDEX, CAC 40 INDEX

Terrorism no longer phases investors

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Original article by John Kehoe
The Australian Financial Review – Page: 12 : 15-Jun-16

The Dow Jones Industrial Average fell 7.1 per cent when trading resumed following the 11 September 2001 terrorist attacks in the US. However, the Dow Jones shed just 0.74 per cent after 50 people were killed in a nightclub in Orlando. Likewise, the CAC 40 shed just 0.1 per cent following the Paris terrorist attacks in November 2015 and the Brussels attacks in March 2016 had little impact on global sharemarkets. Analysis also suggests that terrorist attacks generally do not have much economic impact over the long-term.

CORPORATES
DOW JONES INDUSTRIAL AVERAGE INDEX, CAC 40 INDEX, STANDARD AND POOR’S 500 INDEX, IBEX 35 INDEX, FTSE 100 INDEX, CHARLES SCHWAB AND COMPANY, UNIVERSITY OF ALABAMA

Dud stocks stage tidy turnarounds

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Original article by Simon Evans
The Australian Financial Review – Page: 16 : 15-Jun-16

A number of stocks whose poor performance had made them candidates for tax-loss selling in the lead-up to the end of the financial year have rebounded in recent months. Santos reached a low of $A2.64 early in 2016, but the stock has since risen to around $A4.48. Other resources and mining-related stocks have also staged a turnaround in recent months, while grocery wholesaler Metcash has risen strongly since September 2015. Likewise, speculation of a potential demerger has boosted the share price of Origin Energy.

CORPORATES
SANTOS LIMITED – ASX STO, METCASH LIMITED – ASX MTS, ORIGIN ENERGY LIMITED – ASX ORG, SOUTH32 LIMITED – ASX S32, WORLEYPARSONS LIMITED – ASX WOR, BRADKEN LIMITED – ASX BKN, PERPETUAL INVESTMENTS, IGA, WOOLWORTHS LIMITED – ASX WOW, COLES SUPERMARKETS AUSTRALIA PTY LTD, ALDI STORES SUPERMARKETS PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG, ARRIUM LIMITED – ASX ARI

Beaten-down blue chips offer attractive buying opportunities

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Original article by Stephen Cauchi
The Australian Financial Review – Page: 30 : 14-Jun-16

Australia’s S&P/ASX300 has gained 3.76 per cent so far in 2016, while the S&P/ASX 200 has shed 2.4 per cent. However, Olivia Engel of State Street Global Advisors remains upbeat about the top 20 blue chip stocks, arguing that the sell-off means that some of them offer value. Tim Schroeders of Pengana Capital recently noted that blue-chip miners BHP Billiton and Rio Tinto represent "reasonable" value on an enterprise value and EBITDA basis.

CORPORATES
STANDARD AND POOR’S ASX 300 INDEX, STANDARD AND POOR’S ASX 20 INDEX, STATE STREET GLOBAL ADVISORS AUSTRALIA LIMITED, PENGANA CAPITAL LIMITED, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, TELSTRA CORPORATION LIMITED – ASX TLS, CSL LIMITED – ASX CSL, WESFARMERS LIMITED – ASX WES, WOOLWORTHS LIMITED – ASX WOW, SCENTRE GROUP – ASX SCG, MACQUARIE GROUP LIMITED – ASX MQG, TRANSURBAN GROUP LIMITED – ASX TCL, WOODSIDE PETROLEUM LIMITED – ASX WPL, WESTFIELD CORPORATION – ASX WFD, BRAMBLES LIMITED – ASX BXB, QBE INSURANCE GROUP LIMITED – ASX QBE, AMP LIMITED – ASX AMP, SUNCORP GROUP LIMITED – ASX SUN, INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG

Locals fall short when it comes to annual reports

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Original article by Michael Roddan
The Australian – Page: 23 : 9-Jun-16

Research by KPMG shows that the annual reports of French companies average 310 pages, while Australian annual reports average just 155. Meanwhile, local companies’ consolidated financial statements average 70 pages, compared with 140 in Italy. However, the length of the remuneration reports of Australian companies tend to exceed the global average, comprising 28 per cent of their annual report. KPMG’s global survey also shows that just 14 per cent of Australian companies outline their longer-term business strategy in the annual report.

CORPORATES
KPMG