K: Financial and Insurance Services

Forget the index, it’ll be a picker’s game

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Original article by Vanessa Desloires, Stephen Cauchi
The Australian Financial Review – Page: 20 : 4-Jan-16

Australia’s benchmark S&P/ASX 200 Index ended 2015 at 5,295.9 points. Goldman Sachs forecasts that it will rise to 5,600 in 2016, and Citi expects it to reach 5,900. Meanwhile, David Bryant of Australian Unity says factors such as low interest rates and sustained weakness in commodity prices will weigh on sharemarket returns in 2016. Bryant is particularly bearish about returns from resources and banking stocks.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, GOLDMAN SACHS AUSTRALIA GROUP HOLDINGS PTY LTD, DEUTSCHE BANK AG, AUSTRALIAN UNITY LIMITED, CREDIT SUISSE (AUSTRALIA) LIMITED, PRIME VALUE ASSET MANAGEMENT LIMITED, COMMONWEALTH SECURITIES LIMITED

Resources stocks have huge interest, among their few fans

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Original article by Vesna Poljak
The Australian Financial Review – Page: 11 & 12 : 4-Jan-16

Garth Rossler of Maple-Brown Abbott says resources stocks could perform well in 2016 after a challenging year for the sector in 2015. Meanwhile, Randal Jenneke of T Rowe Price recently warned that the high yields from infrastructure and property stocks may not be sustainable. He says such stocks are likely to be impacted if the US Federal Reserve adopts an aggressive approach to increasing interest rates.

CORPORATES
MAPLE-BROWN ABBOTT LIMITED, T ROWE PRICE GROUP INCORPORATED, UNITED STATES. FEDERAL RESERVE BOARD, STANDARD AND POOR’S ASX 200 INDEX, BHP BILLITON LIMITED – ASX BHP, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, RIO TINTO LIMITED – ASX RIO, WOODSIDE PETROLEUM LIMITED – ASX WPL, CLSA AUSTRALIA PTY LTD

CBA’s heavily traded shares look to tip BHP from perch

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Original article by Peter Ker
The Australian Financial Review – Page: 60 : 23-Dec-15

Turnover in the Commonwealth Bank’s shares has totalled $A64.94bn so far in 2015, and the banking major seems poised to claim the title of the most heavily-traded stock by value for the year. BHP Billiton held this title for the previous five years, but just $A56.88bn worth of its shares have changed hands in the year to date, compared with $A152.9bn in 2010. BHP’s shares have fallen sharply in 2015, due to factors such as the downturn in commodity prices and the tailings dam disaster in Brazil.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BHP BILLITON LIMITED – ASX BHP, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, TELSTRA CORPORATION LIMITED – ASX TLS, STANDARD AND POOR’S ASX 200 INDEX, BT INVESTMENT MANAGEMENT LIMITED – ASX BTT, SOUTH32 LIMITED – ASX S32

The good, the bad and the ugly of 2015

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Original article by James Thomson
The Australian Financial Review – Page: 13 & 14 : 22-Dec-15

The rise in Blackmores’ share price from $A35 to more than $A200m was one of the highlights of 2015 for investors and financial markets. Others include the profit turnaround of Qantas, the US IPO of Atlassian, the sale of Toll Holdings to Japan Post for $A6.5bn and the commencement of exports from Gina Rinehart’s Roy Hill iron ore project. On the downside, a number of stocks have fallen sharply in 2015, including BHP Billiton, Dick Smith Holdings and Slater & Gordon, while embattled retailer Woolworths has issued several profit downgrades and is yet to stem losses at its Big W and Masters businesses.

CORPORATES
BLACKMORES LIMITED – ASX BKL, QANTAS AIRWAYS LIMITED – ASX QAN, ATLASSIAN CORPORATION PLC, TOLL HOLDINGS LIMITED, JAPAN POST COMPANY LIMITED, ROY HILL IRON ORE PTY LTD, BHP BILLITON LIMITED – ASX BHP, DICK SMITH HOLDINGS LIMITED – ASX DSH, SLATER AND GORDON LIMITED – ASX SGH, WOOLWORTHS LIMITED – ASX WOW, BIG W DISCOUNT STORES, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD, SWISSE WELLNESS PTY LTD, INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG, BERKSHIRE HATHAWAY INCORPORATED, APPEN LIMITED – ASX APX, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, SANTOS LIMITED – ASX STO, SCEPTER PARTNERS, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, FORTESCUE METALS GROUP LIMITED – ASX FMG, RIO TINTO LIMITED – ASX RIO, ANCHORAGE CAPITAL PARTNERS PTY LTD, MYER HOLDINGS LIMITED – ASX MYR, VOCATION LIMITED – ASX VET, AUSTRALIAN CAREERS NETWORK LIMITED, ORICA LIMITED – ASX ORI, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

Australia forecast to follow Fed on rates

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Original article by Mark Mulligan
The Australian Financial Review – Page: 26 : 22-Dec-15

The Australian dollar has strengthened in the wake of the US Federal Reserve’s decision to increase interest rates. There is growing speculation that the Reserve Bank will begin tightening monetary policy in 2016, with BT Investment Management forecasting that the cash rate will rise from two per cent to 2.5 per cent. Michael Blythe of the Commonwealth Bank expects monetary policy to remain unchanged, while the ANZ Bank has forecast that the cash rate will be cut to 1.5 per cent.

CORPORATES
UNITED STATES. FEDERAL RESERVE BOARD, RESERVE BANK OF AUSTRALIA, BT INVESTMENT MANAGEMENT LIMITED – ASX BTT, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, MARKET ECONOMICS PTY LTD, BANK OF AMERICA AUSTRALIA LIMITED, MERRILL LYNCH (AUSTRALIA) PTY LTD

Easy money era coming to an end

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Original article by Vesna Poljak
The Australian Financial Review – Page: 1 & 10 : 18-Dec-15

The Australian sharemarket rose on 17 December 2015, in response to the US Federal Reserve’s decision to increase interest rates from historic lows. However, the Australian dollar lost ground in local trading, while the US dollar gained 0.95 per cent. Meanwhile, the Federal Reserve has given indications that there could potentially be four interest rate increases in 2016, although Mark Bayley of AquAsia has questioned whether there will be scope for such aggressive monetary policy tightening. Many analysts believe that two rate rises are more likely.

CORPORATES
UNITED STATES. FEDERAL RESERVE BOARD, AQUASIA PTY LTD, STANDARD AND POOR’S ASX 200 INDEX, RESERVE BANK OF AUSTRALIA, SCHRODER INVESTMENT MANAGEMENT AUSTRALIA LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WELLS FARGO BANK

ASX soars above 5000 in pre-Fed rally

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 26 : 17-Dec-15

The Australian sharemarket posted strong gains on 16 December 2015, with the S&P/ASX 200 adding 118.8 points to close at 5,028.4. The Commonwealth Bank was 2.9 per cent higher at $A79.09 and BHP Billiton rose 5.6 per cent to end the session at $A17.18. However, Primary Healthcare shed 9.7 per cent to finish at $A2.33 and Sonic Healthcare was 5.6 per cent lower at $A17.46.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BHP BILLITON LIMITED – ASX BHP, PRIMARY HEALTH CARE LIMITED – ASX PRY, SONIC HEALTHCARE LIMITED – ASX SHL, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, 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, ORIGIN ENERGY LIMITED – ASX ORG, WHITEHAVEN COAL LIMITED – ASX WHC, SANTOS LIMITED – ASX STO, WESFARMERS LIMITED – ASX WES, WOOLWORTHS LIMITED – ASX WOW, DOMINO’S PIZZA ENTERPRISES LIMITED – ASX DMP, CROWN RESORTS LIMITED – ASX CWN, PRIME VALUE ASSET MANAGEMENT LIMITED, IG MARKETS LIMITED, CONSOLIDATED PRESS HOLDINGS LIMITED, JOEY’S PIZZA, UNITED STATES. FEDERAL RESERVE BOARD, STANDARD AND POOR’S ASX ALL ORDINARIES INDEX

US stocks rise on Fed rate hike

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Original article by Chelsey Dulaney
The Australian – Page: Online : 17-Dec-15

The US Federal Reserve has increased the federal funds rate by 25 basis points at its monetary policy meeting in mid-December 2015. It is the first rise in US short-term interest rates since December 2008. Investors will now be seeking guidance from Federal Reserve chair Janet Yellen on the likely timing of further rate increases. The move to tighten monetary policy has bolstered Wall Street, while the gold price and the US dollar have also risen.

CORPORATES
UNITED STATES. FEDERAL RESERVE BOARD, DOW JONES INDUSTRIAL AVERAGE INDEX, STANDARD AND POOR’S 500 INDEX, NASDAQ COMPOSITE INDEX, O’NEILL SECURITIES, NEW YORK STOCK EXCHANGE, EURO STOXX 50 INDEX

ANZ-Roy Morgan Australian Consumer Confidence: A Cheerier Christmas

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 15-Dec-15

The ANZ-Roy Morgan Consumer Confidence rating for Australia fell by 0.8 per cent to 115.4 in the week ended 13 December 2015, consolidating after the 3.1 per cent bounce in the previous week. Confidence remains well above levels seen last Christmas (up 4.7 per cent compared with this time last year), and is still above its long- run average. The decline was relatively broad-based, with confidence in financial conditions falling by 2.6 per cent and the economic outlook down 1.3 per cent. Roy Morgan Research executive chairman Gary Morgan says the Turnbull Government has injected confidence in the economy, but the end of the commodities boom is only now starting to have an impact on the Australian economy. Unless real action is taken to get the private sector moving consumer confidence will deteriorate in 2016. Tax reform alone will be of limited value while significant sectors of the economy, such as the cost of the Public Sector and the "cash economy", are immune.

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

ASX dives below 5000 amid Fed rate jitters

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 26 : 15-Dec-15

The Australian sharemarket lost ground on 14 December 2015, with the S&P/ASX 200 shedding 100.9 points to close at 4,928.6. The Commonwealth Bank eased 1.9 per cent to end the session at $A77.44, BHP Billiton was down 3.5 per cent at $A16.60 and Woolworths fell 1.8 per cent to finish at $A22.59. However, Regis Resources advanced 8.6 per cent to close at $A2.28.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BHP BILLITON LIMITED – ASX BHP, WOOLWORTHS LIMITED – ASX WOW, REGIS RESOURCES LIMITED – ASX RRL, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, 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, WESFARMERS LIMITED – ASX WES, CSL LIMITED – ASX CSL, LIQUEFIED NATURAL GAS LIMITED – ASX LNG, MORGANS FINANCIAL LIMITED, CONTANGO ASSET MANAGEMENT LIMITED, UNITED STATES. FEDERAL RESERVE BOARD, THIRD AVENUE FOCUSED CREDIT FUND, STANDARD AND POOR’S ASX ALL ORDINARIES INDEX, STANDARD AND POOR’S 500 INDEX