CAPITALISTS AND FINANCIERS – AUSTRALIA

Wild ride for majors as profit season unfolds

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Original article by David Rogers
The Australian – Page: 27 : 24-Aug-17

The August 2017 reporting season has prompted large movements in the shares of some blue-chip stocks. Data from Bloomberg shows that 30 companies in the benchmark S&P/200 Index have experienced share price movements of at least five per cent on the day their latest financial results were released. AMP Capital’s Shane Oliver notes that a similar number of stocks have outperformed and underperformed the market, although investors have tended to react more savagely than usual to stocks that failed to meet earnings expectations.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, AMP CAPITAL INVESTORS LIMITED, BLOOMBERG LP, DOMINO’S PIZZA ENTERPRISES LIMITED – ASX DMP, TELSTRA CORPORATION LIMITED – ASX TLS, HEALTHSCOPE LIMITED – ASX HSO, ACONEX LIMITED – ASX ACX, INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG, SIRTEX MEDICAL LIMITED – ASX SRX, WOOLWORTHS LIMITED – ASX WOW, MONADELPHOUS GROUP LIMITED – ASX MND, THE A2 MILK COMPANY LIMITED – ASX A2M, VIRTUS HEALTH LIMITED – ASX VRT, THE STAR ENTERTAINMENT GROUP LIMITED – ASX SGR, McMILLAN SHAKESPEARE LIMITED – ASX MMS, AVEO GROUP – ASX AOG, BEACH POINT CAPITAL MANAGEMENT LP, SEVEN GROUP HOLDINGS LIMITED – ASX SVW, FORTESCUE METALS GROUP LIMITED – ASX FMG, MACQUARIE GROUP LIMITED – ASX MQG

CLSA slaps a buy on listed retail landlords

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Original article by Matthew Cranston
The Australian Financial Review – Page: 28 : 20-Jul-17

Shares in Australian-listed real estate investment trusts have fallen sharply in 2017, with Westfield Corporation and Vicinity Centres shedding 16.7 per cent and 13.7 per cent respectively. The A-REIT sector has fallen by about 10 per cent in the last month, but Sholto Maconochie of CLSA is upbeat about the outlook for the sector, and retail property trusts in particular. CLSA favours Scentre Group and Vicinity Centres, and the firm’s rating on the latter has been upgraded to "outperform".

CORPORATES
WESTFIELD CORPORATION – ASX WFD, VICINITY CENTRES – ASX VCX, SCENTRE GROUP – ASX SCG, CLSA AUSTRALIA PTY LTD, CBRE PTY LTD, CHADSTONE SHOPPING CENTRE, DEXUS PROPERTY GROUP – ASX DXS, INVESTA OFFICE FUND – ASX IOF

Overreaction presents chance to buy on dip

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Original article by David Rogers
The Australian – Page: 27 : 13-Jul-17

Australia’s benchmark S&P/ASX 200 Index reached an intra-day low of 5,665.6 points on 12 July 2017, before closing one per cent lower. The domestic bourse has shed 0.8 per cent so far in July, which may be a timely opportunity for investors to buy into the market. Meanwhile, although investors remain concerned about the political risk associated with US President Donald Trump, Citigroup believes that impeachment is unlikely despite the revelations concerning a meeting between Trump’s son and a Russian lawyer.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, CITIGROUP PTY LTD, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, REPUBLICAN PARTY (UNITED STATES)

New financial year ‘reset’ for investors

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Original article by Myriam Robin
The Australian Financial Review – Page: 27 : 4-Jul-17

Australia’s S&P/ASX 200 shed 3.4 per cent in May 2017 and 0.1 per cent in June, due to factors such as tax-loss selling in the lead-up to the end of the financial year. Ophir Asset Management’s Andrew Mitchell is upbeat about the outlook for local equities in July, noting that fund managers will begin reweighting their portfolios. Institutional investors may also buy into stocks prior to the reporting season in August.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, OPHIR ASSET MANAGEMENT PTY LTD, MORGAN STANLEY AUSTRALIA LIMITED, TPG TELECOM LIMITED – ASX TPM, ACONEX LIMITED – ASX ACX, SANTOS LIMITED – ASX STO, APN OUTDOOR GROUP LIMITED – ASX APO, DOMINO’S PIZZA ENTERPRISES LIMITED – ASX DMP, AVEO GROUP – ASX AOG

Time running out for tax-loss selling

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Original article by Jessica Sier
The Australian Financial Review – Page: 20 : 19-Jun-17

Katana Asset Management’s Romano Sala Tenna notes that Australian investors traditionally engaged in tax-loss selling in the final week of June. However, he says investors are increasingly selling underperforming stocks well before the end of the financial year. Quantitative analysis shows that stock which experience a sharp sell-off in May and June typically rebound over the first few months of the new fiscal year. Stocks that have been subject to tax-loss selling in 2017 include Mayne Pharma, APN Outdoor Group and Harvey Norman.

CORPORATES
KATANA ASSET MANAGEMENT LIMITED, MAYNE PHARMA GROUP LIMITED – ASX MYX, APN OUTDOOR GROUP LIMITED – ASX APO, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, JB HI-FI LIMITED – ASX JBH, SUPER RETAIL GROUP LIMITED – ASX SUL, ORIGIN ENERGY LIMITED – ASX ORG, SPOTLESS GROUP HOLDINGS LIMITED – ASX SPO, SLATER AND GORDON LIMITED – ASX SGH, AUSTRALIAN TAXATION OFFICE

Small cap stock the winners in slow-growth local economy

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Original article by Myriam Robin
The Australian Financial Review – Page: 27 : 7-Jun-17

Victor Gomes of UBS says any economic slowdown in Australia means small-capitalisation stocks with significant offshore earnings are likely to perform well. Large-cap stocks have outperformed in recent years, and some small-caps were heavily sold down during the February 2017 reporting season. Robert Talevski of Activus Investment Advisors says investors need to focus on the long-term investment horizon when buying into small-caps.

CORPORATES
UBS HOLDINGS PTY LTD, ACTIVUS INVESTMENT ADVISORS PTY LTD, FORAGER FUNDS MANAGEMENT PTY LTD, STANDARD AND POOR’S ASX SMALL ORDINARIES INDEX, STANDARD AND POOR’S ASX 20 INDEX, AMAZON.COM INCORPORATED, YOWIE GROUP LIMITED – ASX YOW, GENWORTH MORTGAGE INSURANCE AUSTRALIA LIMITED – ASX GMA

Key predictor levels to keep a wary eye on

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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

Top 20 stocks lead revival, but with caveat

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Original article by Jens Meyer
The Australian Financial Review – Page: 20 : 5-Dec-16

Blue chip stocks have been in favour with Australian investors in recent weeks, amid a trend to offload growth stocks. The 20 largest stocks in particular have generally performed well since the start of October 2016, and Macquarie Group expects this trend to be sustained into 2017. However, Tony Brennan of Citigroup cautions that blue chip stocks in some sectors may not perform as well as others.

CORPORATES
MACQUARIE GROUP LIMITED – ASX MQG, CITIGROUP PTY LTD, STANDARD AND POOR’S ASX 200 INDEX, VOCUS COMMUNICATIONS LIMITED – ASX VOC, BELLAMY’S AUSTRALIA LIMITED – ASX BAL, APP SECURITIES, QBE INSURANCE GROUP LIMITED – ASX QBE, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, TRANSURBAN GROUP LIMITED – ASX TCL, SCENTRE GROUP – ASX SCG, WOOLWORTHS LIMITED – ASX WOW, WESFARMERS LIMITED – ASX WES, TELSTRA CORPORATION LIMITED – ASX TLS

Ingham shares hatch to wary IPO market

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Original article by Vesna Poljak
The Australian Financial Review – Page: 13 & 18 : 7-Nov-16

Inghams Group’s listing on the Australian sharemarket on 7 November is likely to be closely scrutinised by investors after the IPO had to be repriced. The stock has been issued at $A3.15 per share, compared with initial hopes of between $A3.57 to $A4.14. Bravura Solutions and the Charter Hall Long WALE REIT have also been forced to scale back the issue price of their stock. Some fund managers note that investor sentiment has changed in recent weeks, particularly with regard to IPOs.

CORPORATES
INGHAMS GROUP LIMITED – ASX ING, BRAVURA SOLUTIONS LIMITED – ASX BVS, CHARTER HALL LONG WALE REIT – ASX CLW, APOLLO TOURISM AND LEISURE LIMITED – ASX ATL, PENGANA EMERGING COMPANIES FUND, TPG CAPITAL LP, THE CARLYLE GROUP, PACIFIC EQUITY PARTNERS PTY LTD, HEALTHSCOPE LIMITED – ASX HSO, DICK SMITH HOLDINGS LIMITED, ANCHORAGE CAPITAL PARTNERS PTY LTD, INVESTORS MUTUAL LIMITED, AUTOSPORTS GROUP LIMITED – ASX ASG

Australia raises $7.6b in first 30-year bond

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Original article by Vesna Poljak
The Australian Financial Review – Page: 20 : 13-Oct-16

The inaugural issuance of 30-year Australian government bonds attracted more than $A13bn worth of bids from prospective investors. The offer was capped at $A7.6bn, and the yield on the long-dated bonds will be 3.27 per cent. This is significantly higher than equivalent bonds in the US, the UK and Japan, while financial market watchers had anticipated a yield of between 3.21 per cent and 3.28 per cent. Demand for the 30-year bonds and the limited supply is likely to result in strong activity in the aftermarket.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY. OFFICE OF FINANCIAL MANAGEMENT, QIC LIMITED, JP MORGAN AUSTRALIA LIMITED, BANK OF JAPAN, EUROPEAN CENTRAL BANK