ASX’s most shorted stocks set for results reporting test

Original article by William McInnes
The Australian Financial Review – Page: 20 : 11-Feb-19

Some of the Australian sharemarket’s most heavily shorted companies will release their latest financial results in the week beginning 11 February, including JB Hi-Fi, Super Retail Group, Bendigo & Adelaide Bank and AMP. JB Hi-Fi is the most shorted S&P/ASX 200 stock, and Jun Bei Liu of Tribeca Investment Partners notes that the retail trading environment is challenging at present. Meanwhile, ASX 200 trading volumes were 11 per cent higher than average during the first week of the reporting season, as fund managers returned to the market.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, JB HI-FI LIMITED – ASX JBH, SUPER RETAIL GROUP LIMITED – ASX SUL, BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, AMP LIMITED – ASX AMP, TRIBECA INVESTMENT PARTNERS PTY LTD, FIRETRAIL INVESTMENTS PTY LTD, OPHIR ASSET MANAGEMENT PTY LTD, TELSTRA CORPORATION LIMITED – ASX TLS, AMCOR LIMITED – ASX AMC, CLEANAWAY WASTE MANAGEMENT LIMITED – ASX CWY, LEND LEASE GROUP LIMITED – ASX LLC, CYBG PLC – ASX CYB, JAMES HARDIE INDUSTRIES PLC – ASX JHX, NICK SCALI LIMITED – ASX NCK, IOOF HOLDINGS LIMITED – ASX IFL, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY

Less bad outcome a relief for banks

Original article by David Rogers
The Australian – Page: 21 : 5-Feb-19

There is general consensus among equity analysts and portfolio managers that the final report of the financial services royal commission has not been as harsh on the banking sector as it could have been. Shares in the major banks and AMP are expected to rise when trading resumes on 5 February, although listed mortgage brokers are likely to face a sell-off after the inquiry recommended that brokers’ commissions paid by lenders be phased out in favour of ones paid by borrowers.

CORPORATES
AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AMP LIMITED – ASX AMP, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, NOMURA AUSTRALIA LIMITED, BELL DIRECT, TRIBECA INVESTMENT PARTNERS PTY LTD, AUSTRALIA. DEPT OF THE TREASURY, MORTGAGE CHOICE LIMITED – ASX MOC, AUSTRALIAN FINANCE GROUP LIMITED – ASX AFG

Tough earnings season ahead as pressure builds

Original article by David Rogers
The Australian – Page: 27 : 31-Jan-19

Tony Brennan of Citigroup says earnings guidance in the February 2019 reporting season is likely to be influenced by factors such as the slowdown in Australia’s housing market and falling business sentiment. Brennan says companies in a range of sectors have downgraded their earnings forecasts in recent months, and this may be reflected in the upcoming profit reporting season. The S&P/ASX 200 has gained 4.3 per cent so far in 2019, and Citigroup still expects it to test the 6,300-point level by the end of the year.

CORPORATES
CITIGROUP PTY LTD, STANDARD AND POOR’S ASX 200 INDEX, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, CORELOGIC AUSTRALIA PTY LTD

Storm clouds gathering after a promising start

Original article by David Rogers
The Australian – Page: 24 : 30-Jan-19

Australia’s benchmark S&P/ASX 200 has gained more than four per cent so far in 2019, putting it on track to achieve its best performance in the month of January in five years. However, the local market could face a number of headwinds in the near-term, including the outlook for US interest rates and trade negotiations between the US and China. There is growing speculation that the Federal Reserve will pause its monetary policy tightening in 2019, and the exact timing of the next move in the cash rate remains uncertain.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, UNITED STATES. FEDERAL RESERVE BOARD, DOW JONES INDUSTRIAL AVERAGE INDEX, PEPPERSTONE GROUP LIMITED, JP MORGAN AND COMPANY INCORPORATED, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, HUAWEI TECHNOLOGIES COMPANY LIMITED

Sharemarkets burst out of blocks

Original article by David Rogers
The Australian – Page: 15 & 18 : 29-Jan-19

The S&P/ASX 200 has gained 4.6 per cent so far in January 2019, and it has risen eight per cent since reaching a two-year low in December. Jason Steed of JP Morgan says the benchmark index could test the 6,300-point level by the end of 2019, which implies a 12 per cent gain for the year. Meanwhile, Deutsche Bank expects the S&P/ASX 200 to finish the year at 6,150 points. Overseas sharemarkets have also started the year strongly, with the Dow Jones Industrial Average having risen for five consecutive weeks.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, JP MORGAN AUSTRALIA LIMITED, DEUTSCHE BANK AG, DOW JONES INDUSTRIAL AVERAGE INDEX, RESERVE BANK OF AUSTRALIA, UNITED STATES. FEDERAL RESERVE BOARD, NEWCREST MINING LIMITED – ASX NCM, SYDNEY AIRPORT – ASX SYD, TELSTRA CORPORATION LIMITED – ASX TLS, ARISTOCRAT LEISURE LIMITED – ASX ALL, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, BLUESCOPE STEEL LIMITED – ASX BSL, BRAMBLES LIMITED – ASX BXB, RELIANCE WORLDWIDE CORPORATION LIMITED – ASX RWC, TREASURY WINE ESTATES LIMITED – ASX TWE

Citi eyes value in beaten-down media sector

Original article by Lilly Vitorovich
The Australian – Page: 20 : 16-Jan-19

Citigroup has downgraded its 2018-19 earnings-per-share forecasts for listed media groups, including Nine Entertainment Company, Seven West Media and Southern Cross Media. The investment bank has also reduced its share price targets for these stocks, although its recommendations on Nine, Seven, Southern Cross and News Corporation have been upgraded.

CORPORATES
NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, SEVEN WEST MEDIA LIMITED – ASX SWM, SOUTHERN CROSS MEDIA GROUP LIMITED – ASX SXL, NEWS CORPORATION – ASX NWS, HT&E LIMITED – ASX HT1, CITIGROUP PTY LTD, DOMAIN HOLDINGS AUSTRALIA LIMITED – ASX DHA

Banks could face another tough year

Original article by Sarah Turner
The Australian Financial Review – Page: 17 : 10-Jan-19

The S&P/ASX 200 Banks Index shed 16.5 per cent in 2018, falling to its lowest level in five years. JCP Investment Partners is bearish about the outlook for the sector in 2019, warning that there is a 40-50 per cent chance of a banking crisis. However, Citigroup is more upbeat about the sector, and suggests that bank stocks may have been oversold.

CORPORATES
STANDARD AND POOR’S ASX 200 BANKS INDEX, JCP INVESTMENT PARTNERS LIMITED, CITIGROUP PTY LTD

Hurdles ahead, but ASX could reach 6000

Original article by David Rogers
The Australian – Page: 18 : 9-Jan-19

The benchmark S&P/ASX 200 reached an intra-day high of 5,733.7 points on 8 January, having fallen to 5,410.2 points on 24 December. Morgan Stanley says the financial services royal commission, the upcoming federal election, the impact of falling house prices on consumer confidence and the outlook for the Chinese economy are key risks for the local bourse in the near-term. However, Chris Nicol and Daniel Blake of Morgan Stanley expect the market to rise above 6,000 points in 2019.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, MORGAN STANLEY AUSTRALIA LIMITED, STANDARD AND POOR’S 500 INDEX, MORGAN STANLEY AND COMPANY INCORPORATED, UNITED STATES. FEDERAL RESERVE BOARD, APPLE INCORPORATED

ASX headed for bounce in 2019

Original article by Tim Boyd
The Australian Financial Review – Page: 17 : 2-Jan-19

The benchmark S&P/ASX 200 shed 6.9 per cent in 2018, ending the year at 5,646.4 points. However, economists are generally upbeat about the outlook for the Australian sharemarket in 2019. Stephen Koukoulas of Market Economics says the market could gain around 20 per cent, while Stephen Roberts of Laminar Capital forecasts a rise of 8-12 per cent. Meanwhile, Marcel Thieliant of Capital Economics expects the S&P 500 to shed around 15 per cent in 2019, which in turn is likely to weigh on the Australian market.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, MARKET ECONOMICS PTY LTD, LAMINAR CAPITAL, CAPITAL ECONOMICS LIMITED, STANDARD AND POOR’S 500 INDEX, AMP CAPITAL INVESTORS LIMITED, RUSSELL INVESTMENTS PTY LTD, TD SECURITIES, RESERVE BANK OF AUSTRALIA, UNITED STATES. FEDERAL RESERVE BOARD, CORELOGIC AUSTRALIA PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

How to invest in the political maelstrom

Original article by David Rogers
The Australian – Page: 15 & 22 : 18-Dec-18

Jason Steed of JP Morgan says a certain amount of sovereign risk has been priced into Australian sharemarket valuations ahead of the 2019 federal election. He notes that while there is some concern among investors about the prospecting of a Labor government, the Coalition has not very pro-business either. He adds that although the financial services sector in particular faces some headwinds in 2019, investors have already largely priced in the political and regulatory risks.

CORPORATES
JP MORGAN AUSTRALIA LIMITED, AUSTRALIAN LABOR PARTY, STANDARD AND POOR’S ASX 200 INDEX, CALTEX AUSTRALIA LIMITED – ASX CTX, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, METCASH LIMITED – ASX MTS, RIO TINTO LIMITED – ASX RIO, WOOLWORTHS GROUP LIMITED – ASX WOW, ALUMINA LIMITED – ASX AWC, TELSTRA CORPORATION LIMITED – ASX TLS, SYDNEY AIRPORT – ASX SYD, TRANSURBAN GROUP LIMITED – ASX TCL