CAPITALISTS AND FINANCIERS – AUSTRALIA

There’s still value on Wall Street, fund managers say

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 27 : 13-Jul-16

Perpetual’s Garry Laurence says the US sharemarket may have peaked, after the S&P 500 reached a new high in mid-July 2016. He anticipates further market volatility, and identifies Merck, Sanofi, Oracle, EMC and Zhaopin as the best buying opportunities among US-listed stocks. Wingate Asset Management’s Chad Padowitz notes that some sectors of the US sharemarket offer better value than others at present, and he favours stocks such as Citigroup, Bank of America, Allergan and Sanofi.

CORPORATES
PERPETUAL LIMITED – ASX PPT, WINGATE ASSET MANAGEMENT PTY LTD, STANDARD AND POOR’S 500 INDEX, MERCK AND COMPANY INCORPORATED, SANOFI PHARMACEUTICALS, ORACLE CORPORATION, EMC CORPORATION, ZHAOPIN LIMITED, CITIGROUP INCORPORATED, BANK OF AMERICA CORPORATION, ALLERGAN INCORPORATED, COLONIAL FIRST STATE GLOBAL ASSET MANAGEMENT, BANK OF ENGLAND, BANK OF JAPAN, RESERVE BANK OF AUSTRALIA, RESERVE BANK OF NEW ZEALAND, JAPAN. OFFICE OF THE PRIME MINISTER

Hung parliament syndrome: Lessons from Gillard in 2010

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Original article by Jessica Sier
The Australian Financial Review – Page: 27 : 5-Jul-16

The potential for a hung parliament following the 2016 federal election is likely to weigh on investor sentiment in the near-term, although equities quickly recovered after a sell-off in the wake of the 2010 election. The prospect of another obstructive Senate in particular is a concern for investors, as it is likely to affect the timing of a return to a Budget surplus. However, financial markets are proving to be resilient to risk factors, as the rebound following the UK’s "Brexit" referendum demonstrates.

CORPORATES
WATERMARK FUNDS MANAGEMENT PTY LTD, STANDARD AND POOR’S ASX 200 INDEX, CAPITAL ECONOMICS LIMITED, CITIGROUP PTY LTD, STANDARD AND POOR’S CORPORATION

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

Minority rule would knock confidence

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 29 : 9-Jun-16

The 2016 federal election remains too close to call, raising the prospect of a hung parliament or a minority government. Analysts warn that investor sentiment would be affected by a minority government, with Chris Nicol and Daniel Blake of Morgan Stanley noting that both business and consumer confidence were hit during the tenure of the previous minority government between 2010 and 2013. Analysis by Citigroup concludes that the Coalition is likely to win the election, although the Australian Labor Party could gain around 10 seats.

CORPORATES
CITIGROUP PTY LTD, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, AUSTRALIAN LABOR PARTY, MORGAN STANLEY AUSTRALIA LIMITED, CITIGROUP PTY LTD, STANDARD AND POOR’S ASX 200 INDEX, MACQUARIE GROUP LIMITED – ASX MQG, WESTPAC BANKING CORPORATION – ASX WBC, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, JB HI-FI LIMITED – ASX JBH, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, WHITEHAVEN COAL LIMITED – ASX WHC

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

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

Industrials good value, says UBS

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Original article by Stephen Cauchi
The Australian Financial Review – Page: 22 : 30-May-16

UBS strategist David Cassidy notes that Australian industrial stocks are currently trading at more than 18 times forward earnings. In contrast, the long-term average is about 16 times. However, Cassidy has identified a number of industrial stocks that he says still represent value for investors. His top picks include Aristocrat Leisure, Orora, Resmed, Treasury Wine Estates, Crown Resorts and Vocus Communications.

CORPORATES
UBS HOLDINGS PTY LTD, ARISTOCRAT LEISURE LIMITED – ASX ALL, ORORA LIMITED – ASX ORA, RESMED INCORPORATED – ASX RMD, TREASURY WINE ESTATES LIMITED – ASX TWE, CROWN RESORTS LIMITED – ASX CWN, VOCUS COMMUNICATIONS LIMITED – ASX VOC, BRAMBLES LIMITED – ASX BXB, SIRTEX MEDICAL LIMITED – ASX SRX, ANSELL LIMITED – ASX ANN, COMPUTERSHARE LIMITED – ASX CPU, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, INCITEC PIVOT LIMITED – ASX IPL, QANTAS AIRWAYS LIMITED – ASX QAN

Palmer and Packer up in top stocks

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Original article by John Stensholt
The Australian Financial Review – Page: 21 & 26 : 26-May-16

Reliance Worldwide Corporation chairman Jonathan Munz and WiseTech Global CEO Richard White will appear on the "BRW" Rich 200 List for the first time in 2016, with estimated wealth of $A1.07bn and $A657m respectively. Meanwhile, some members of the Rich List have increased their fortunes by investing in speculative resources stocks, including James Packer, Mark Creasy and Kerry Harmanis.

CORPORATES
RELIANCE WORLDWIDE CORPORATION LIMITED – ASX RWC, WISETECH GLOBAL LIMITED – ASX WTC, MOD RESOURCES LIMITED – ASX MOD, GASCOYNE RESOURCES LIMITED – ASX GCY, ALICANTO MINERALS LIMITED – ASX AQI, DE GREY MINING LIMITED – ASX DEG, BEADELL RESOURCES LIMITED – ASX BDR, MINERALOGY PTY LTD, CROWN RESORTS LIMITED – ASX CWN, PARADICE INVESTMENT MANAGEMENT PTY LTD, JUBILEE MINES NL, XSTRATA AG, BLACKMORES LIMITED – ASX BKL, ACONEX LIMITED – ASX ACX, SMART PARKING LIMITED – ASX SPZ, BELLAMY’S AUSTRALIA LIMITED – ASX BAL, MILLENNIUM MINERALS LIMITED – ASX MOY

Even lower interest rates keep dividends attractive

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 19 : 20-May-16

Tim Baker of Deutsche Bank expects the high dividend yields of Australian equities to remain attractive to investors, amid historically low interest rates and bond yields. He notes that Australian dividend yields have averaged about five per cent over the long-term, which is significantly higher than the yield on international shares. He adds that Australian superannuation funds may reduce their exposure to cash products in favour of shares, while banks’ high yields may attract both local and offshore investors.

CORPORATES
DEUTSCHE BANK AG, UBS HOLDINGS PTY LTD, RESERVE BANK OF AUSTRALIA, UNITED STATES. FEDERAL RESERVE BOARD, AUSTRALIA. FUTURE FUND MANAGEMENT AGENCY, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, ORICA LIMITED – ASX ORI, CSR LIMITED – ASX CSR, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, STOCKLAND – ASX SGP, PACT GROUP HOLDINGS LIMITED – ASX PGH, ALUMINA LIMITED – ASX AWC, MACQUARIE GROUP LIMITED – ASX MQG, SYDNEY AIRPORT – ASX SYD, APA GROUP – ASX APA, SUNCORP GROUP LIMITED – ASX SUN