INVESTMENTS – AUSTRALIA

‘Sell everything’ call a distant memory

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 31 : 19-Aug-16

Global sharemarkets have defied forecasts in January 2016 of a major slump, with most key indices having recovered from a sell-off in February. Andrew Mitchell of Ophir Asset Management says equities should continue to rise, unless there is a "black swan" event. Many fund managers increased their portfolios’ exposure to cash holdings following the Australian market’s downturn in April 2015, but its rebound from 2016 lows has prompted some to reinvest in equities.

CORPORATES
OPHIR ASSET MANAGEMENT PTY LTD, ROYAL BANK OF SCOTLAND GROUP PLC, FTSE 100 INDEX, BENNELONG AUSTRALIAN EQUITY PARTNERS PTY LTD, KATANA ASSET MANAGEMENT LIMITED, BANK OF AMERICA CORPORATION, MERRILL LYNCH AND COMPANY INCORPORATED, DOW JONES INDUSTRIAL AVERAGE INDEX, ORGANISATION OF PETROLEUM EXPORTING COUNTRIES

Expensive defensives ‘threatened’

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 1 & 11 : 12-Jul-16

Paul Ashworth of Cameron Harrison is among the financial market experts who question whether the rally in defensive stocks can be sustained. Defensive sectors such as healthcare, utilities and industrials have posted double-digit gains over the last year, while the broader Australian sharemarket has shed three per cent. Prime Value Asset Management’s ST Wong notes that some stocks such as infrastructure and utilities are now trading at high forward price-earnings ratios, but he says they could post further gains if the bond rally continues.

CORPORATES
CAMERON HARRISON PTY LTD, PRIME VALUE ASSET MANAGEMENT LIMITED, STANDARD AND POOR’S ASX 200 INDEX, AGL ENERGY LIMITED – ASX AGL, ALTIUM LIMITED – ASX ALU, TREASURY WINE ESTATES LIMITED – ASX TWE, INFIGEN ENERGY LIMITED – ASX IFN, INVESTORS MUTUAL LIMITED, WOOLWORTHS LIMITED – ASX WOW, WESFARMERS LIMITED – ASX WES, INTEGRAL DIAGNOSTICS LIMITED – ASX IDX, VIRTUS HEALTH LIMITED – ASX VRT, ORORA LIMITED – ASX ORA, VITA GROUP LIMITED – ASX VTG

ASX tipped to hit 5500 by end of 2016

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Original article by Jessica Sier
The Australian Financial Review – Page: 21 : 11-Jul-16

Hasan Tevfik of Credit Suisse says Australian shares are relatively cheap at present, in comparison to alternative investments such as cash and bonds. Tevfik adds that the prospect of further official interest rate cuts should also prompt investors to switch to equities. Meanwhile, UBS notes that the market’s price-to-book value is now 13 per cent below the long-term average, and about 50 per cent lower in the case of resources stocks. UBS’s David Cassidy expects the market to be trading at around 5,500 points by the end of 2016.

CORPORATES
CREDIT SUISSE (AUSTRALIA) LIMITED, UBS HOLDINGS PTY LTD, STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S ASX ALL ORDINARIES INDEX, RESERVE BANK OF AUSTRALIA, CSL LIMITED – ASX CSL, BRAMBLES LIMITED – ASX BXB, AMCOR LIMITED – ASX AMC

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

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

Forget May, June’s the time to sell and go away

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 26 : 1-Jun-16

The Australian sharemarket has gained nearly 10 per cent since 11 April 2016, which equates to more than 450 points. However, fund managers do not expect the recent rally to be sustained in June, citing factors such as the prospect of an interest rate rise in the US in coming months. Tax loss selling and portfolio rebalancing in the lead-up to the end of the financial year will also influence the near-term direction of the market.

CORPORATES
UBS GLOBAL ASSET MANAGEMENT (AUSTRALIA) LIMITED, PEAK ASSET MANAGEMENT PTY LTD, OPHIR ASSET MANAGEMENT PTY LTD, BELL POTTER SECURITIES LIMITED, CSL LIMITED – ASX CSL, NEWCREST MINING LIMITED – ASX NCM, UNITED STATES. FEDERAL RESERVE BOARD, LIQUEFIED NATURAL GAS LIMITED – ASX LNG, CAPITOL HEALTH LIMITED – ASX CAJ, 1-PAGE LIMITED – ASX 1PG, CARDNO LAWSON TRELOAR PTY LTD, CUDECO LIMITED – ASX CDU

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

Trimmed down miners tipped as next hot sector

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 31 : 27-May-16

UBS Small Companies Fund portfolio managers Stephen Wood and David Haddad are upbeat about the outlook for smaller Australian-listed mining companies. They note that many small-capitalisation mining groups have significantly reduced their costs over the last five years, which has made them attractive to investors. UBS favours stocks such as Fortescue Metals Group, Sundance Resources, Whitehaven Coal, Galaxy Resources, Orocobre and Pilbara Minerals.

CORPORATES
UBS HOLDINGS PTY LTD, FORTESCUE METALS GROUP LIMITED – ASX FMG, SUNDANCE RESOURCES LIMITED – ASX SDL, WHITEHAVEN COAL LIMITED – ASX WHC, GALAXY RESEARCH AND PLANNING PTY LTD, OROCOBRE LIMITED – ASX ORE, PILBARA MINERALS LIMITED – ASX PLS, CITIGROUP PTY LTD