CAPITALISTS AND FINANCIERS – AUSTRALIA

Investors embrace maiden 30-year government bond

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Original article by Jonathan Shapiro
The Australian Financial Review – Page: 1 & 8 : 12-Oct-16

There has been strong demand among international investors for the inaugural issuance of 30-year Australian government bonds. The bonds will mature in March 2047 and investors will receive a rate of 3.25 per cent. The yield on 10-year bonds is currently around 2.25 per cent. The volume and pricing of the 30-year bonds will be determined on 12 October 2016, but the issuance is believed to have attracted around $A7.5bn worth of bids from prospective investors.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY. OFFICE OF FINANCIAL MANAGEMENT, JAMIESONCOOTEBONDS PTY LTD, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, RESERVE BANK OF AUSTRALIA

Banks get short shrift from investors

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Original article by Chris Kohler
The Australian – Page: 20 : 4-Oct-16

Australian banks continued to be targeted by short sellers in September 2016. Data from Deutsche Bank shows that the ANZ Bank and Westpac are the most popular among short sellers, with short positions accounting for 1.9 per cent of their issued stock, compared with 1.5 per cent for the Commonwealth Bank and one per cent for National Australia Bank. Meanwhile, Credit Suisse recently suggested that the major banks’ elevated dividend yields may eventually face downward pressure.

CORPORATES
DEUTSCHE BANK AG, 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, CREDIT SUISSE (AUSTRALIA) LIMITED, BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, BANK OF QUEENSLAND LIMITED – ASX BOQ, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, STANDARD AND POOR’S ASX 200 INDEX

Investors face nervous wait ahead of rate calls

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Original article by Patrick Commins
The Australian Financial Review – Page: 19 : 19-Sep-16

The upcoming monetary policy meetings of the US Federal Reserve and the Bank of Japan will be a focus for Australian investors in the week beginning 19 September 2016. Futures markets have priced in a 20 per cent chance that the Federal Reserve will increase the cash rate, and Paul Ashworth of Capital Economics says a rate rise in December is more likely. The minutes from the Reserve Bank of Australia will also be released, and Philip Lowe will appear before Parliament for the first time in his new role of RBA governor.

CORPORATES
UNITED STATES. FEDERAL RESERVE BOARD, BANK OF JAPAN, RESERVE BANK OF AUSTRALIA, CAPITAL ECONOMICS LIMITED, RESERVE BANK OF NEW ZEALAND, STANDARD AND POOR’S ASX 200 INDEX, WESTPAC BANKING CORPORATION – ASX WBC, AMP CAPITAL INVESTORS LIMITED, EUROPEAN CENTRAL BANK, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Resource stocks in vogue again on back of China hopes

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Original article by Jessica Sier
The Australian Financial Review – Page: 16 : 19-Sep-16

The uncertain outlook for the Chinese economy weighed on both commodity prices and resources stocks earlier in 2016. However, Australia’s resources sector is back in favour with investors, amid growing optimism about the Chinese economy. Whitehaven Coal has gained 250 per cent in the year to date, while pure-play iron ore producer Fortescue Metals Group has risen by 164 per cent.

CORPORATES
WHITEHAVEN COAL LIMITED – ASX WHC, FORTESCUE METALS GROUP LIMITED – ASX FMG, SYRAH RESOURCES LIMITED – ASX SYR, OROCOBRE LIMITED – ASX ORE, GALAXY RESOURCES LIMITED – ASX GXY, CREDIT SUISSE (AUSTRALIA) LIMITED, HSBC AUSTRALIA HOLDINGS PTY LTD, REGAL FUNDS MANAGEMENT PTY LTD, BHP BILLITON LIMITED – ASX BHP, SOUTH32 LIMITED – ASX S32

Why Commonwealth is still the investors’ favourite, 25 years on

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Original article by James Frost
The Australian Financial Review – Page: 18 : 13-Sep-16

The first tranche of Commonwealth Bank shares were issued at $A5.40 apiece in September 1991. Investors who took up the minimum of 400 shares in the float and reinvested their dividends over the following 25 years would now hold $A131,371 worth of shares in Australia’s largest bank. Financial market observers note that the first stage of the Commonwealth Bank privatisation was popular with investors, despite the challenging economic conditions at the time.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN FOUNDATION INVESTMENT COMPANY LIMITED – ASX AFI, MORGANS FINANCIAL LIMITED, MONTGOMERY INVESTMENT MANAGEMENT PTY LTD, EVANS AND PARTNERS PTY LTD, LINCOLN INDICATORS PTY LTD, PYRAMID BUILDING SOCIETY

Shareholders to reap $24b in dividends

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Original article by Patrick Commins
The Australian Financial Review – Page: 31 : 9-Sep-16

CommSec’s Craig James estimates that shareholders of Australian-listed companies will receive $A16.3bn worth of dividend payments in the three weeks from mid-September 2016. The total payout in the wake of the August reporting season is expected to top $A24bn. Fortescue Metals Group is among the companies that have significantly increased their payout, although rivals BHP Billiton and Rio Tinto have slashed their dividends.

CORPORATES
COMMONWEALTH SECURITIES LIMITED, FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, BT INVESTMENT MANAGEMENT LIMITED – ASX BTT

Short sellers target Rio, BHP

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Original article by Peter Ker
The Australian Financial Review – Page: 22 : 8-Sep-16

New figures show that 4.79 per cent of Rio Tinto’s shares were subject to short selling on 31 August 2016, compared with 0.48 per cent on 30 July 2015. Likewise, the proportion of BHP Billiton’s shares that are short sold has risen from 0.2 per cent in March 2015 to 2.15 per cent on 31 August. Pure-play iron ore producer Fortescue Metals Group has traditionally been a key target for short sellers, but shorting activity has fallen from around 12.6 per cent in April 2015 to 2.5 per cent at the end of August.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, WESTERN AREAS LIMITED – ASX WSA, SHAW AND PARTNERS LIMITED, MYER HOLDINGS LIMITED – ASX MYR, WORLEYPARSONS LIMITED – ASX WOR, METCASH LIMITED – ASX MTS, MONADELPHOUS GROUP LIMITED – ASX MND, FLIGHT CENTRE TRAVEL GROUP LIMITED – ASX FLT, MACQUARIE GROUP LIMITED – ASX MQG, SHORTMAN.COM.AU

WIN’s Gordon lifts stake in Ten

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Original article by Darren Davidson
The Australian – Page: 21 : 31-Aug-16

Bruce Gordon has raised his stake in Network Ten to 14.96 per cent, from 14.56 per cent. The transaction, involving ordinary shares and a derivative contract in Deutsche Bank, was executed via Gordon’s private investment vehicle Birketu. The billionaire believes that Ten shares are undervalued.

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN, WIN CORPORATION PTY LTD, BIRKETU PTY LTD, DEUTSCHE BANK AG, PRIME MEDIA GROUP LIMITED – ASX PRT, SOUTHERN CROSS MEDIA GROUP LIMITED – ASX SXL, FACEBOOK INCORPORATED, GOOGLE INCORPORATED, NETFLIX INCORPORATED, WIN TELEVISION PTY LTD

Resources on the rebound, but is it time to get on board?

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Original article by Philip Baker
The Australian Financial Review – Page: 26 : 11-Aug-16

A rise in the spot prices of some commodities may signal a recovery in the resources sector. Investors are optimistic. The share prices of Australian-listed mining companies have risen 25 per cent since the beginning of 2016. Fortescue Metals Group’s stellar performance is particularly impressive. The stock has risen from $A1.44 in January to $A4.50 on 9 August.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, FORTESCUE METALS GROUP LIMITED – ASX FMG, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, BELL POTTER SECURITIES LIMITED

Reporting season may test resilience of ASX

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 20 : 8-Aug-16

Futures traders expect the Australian sharemarket to gain 31 points when trading resumes on 8 August 2016, following a positive lead from Wall Street. The reporting season will continue to be a focus for investors in the coming week, with the Commonwealth Bank, REA Group, Telstra and Cochlear among the companies that are slated to release their latest financial result. The Reserve Bank of New Zealand’s monthly board meeting and Chinese economic data will also attract investors’ attention.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, REA GROUP LIMITED – ASX REA, TELSTRA CORPORATION LIMITED – ASX TLS, COCHLEAR LIMITED – ASX COH, RESERVE BANK OF NEW ZEALAND, AGL PETROLEUM, TRANSURBAN GROUP LIMITED – ASX TCL, BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC, UNIVERSITY OF MELBOURNE. INSTITUTE OF APPLIED ECONOMIC AND SOCIAL RESEARCH, UNITED STATES. FEDERAL RESERVE BOARD, STANDARD AND POOR’S 500 INDEX, RESERVE BANK OF AUSTRALIA, PERPETUAL INVESTMENTS, TD SECURITIES