Greed, fear: ASX wraps worst year since 2012

Original article by William McInnes
The Australian Financial Review – Page: 12 & 24 : 1-Jul-20

The Australian sharemarket shed 10.9 per cent during 2019-20, in a turbulent financial year for investors. The local bourse reached a record high in February, before the coronavirus pandemic prompted a savage sell-off. However, a number of stocks performed well during 2019-20, with Afterpay, Fisher & Paykel Healthcare and Mesoblast all gaining more than 100 per cent. Fund managers warn that the August reporting season will be a key test for the sharemarket’s recent rebound.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, AFTERPAY LIMITED – ASX APT, FISHER AND PAYKEL HEALTHCARE CORPORATION LIMITED – ASX FPH, MESOBLAST LIMITED – ASX MSB

What crisis? Bull market rages on as beaten-down banks lead value charge

Original article by David Rogers
The Australian – Page: 13 & 19 : 5-Jun-20

The S&P/ASX 200 has gained more than 30 per cent since reaching a seven-year low of 4,402.5 points on 23 March. Morgan Stanley estimates that the benchmark index is currently trading on a record 12-month forward price-to-earnings ratio of about 19.55 times. While there has been strong support for some defensive growth stocks, value stocks continue to outperform; Chris Nicol of Morgan Stanley says there will be further upside for value stocks if there is a V-shaped economic recovery.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, MORGAN STANLEY AUSTRALIA LIMITED

Investors should brace for another sharemarket sell-off, warn analysts

Original article by Euan Black
The New Daily – Page: Online : 12-May-20

The S&P/ASX200 has gained more than 20 per cent since 23 March, rebounding from a major sell-off in response to the coronavirus pandemic. Glenn Leese of TradingView cautions that the local bourse may retreat again; he notes that sharemarkets often rally after a big fall, only to incur an even larger slump. He adds that sharemarket crashes and corrections normally occur in a series of three waves, and the local market is currently experiencing its second wave.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, TRADINGVIEW

$150bn shares rout as oil crunch sparks panic

Original article by David Rogers
The Australian – Page: 1 & 6 : 10-Mar-20

The Australian sharemarket has recorded its biggest one-day fall since the global financial crisis. The benchmark S&P/ASX 200 shed 455.6 points or 7.3 per cent to close at 5,760.6 points on 9 March. The local market has now lost 19.6 per cent in less than three weeks. Asian markets were also heavily sold down. Mining and energy stocks have been amongst the hardest hit, with BHP falling 14 per cent and Oil Search down 35 per cent after a big fall in the crude oil price.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S ASX ALL ORDINARIES INDEX, BHP GROUP LIMITED – ASX BHP, OIL SEARCH LIMITED – ASX OSH

Analysts cut bank earnings forecasts

Original article by Gerard Cockburn, Joyce Moullakis
The Australian – Page: 21 : 5-Mar-20

JP Morgan expects the net profits of Australia’s major banks to fall by 3-4 per cent over coming years after they moved to reduce their mortgage interest rates by 25 basis points, in line with the latest official interest rate cut. JP Morgan adds that the prospect of lower profit margins may prompt banks to reduce their dividend payouts. Macquarie has reiterated its ‘underweight’ recommendation on the banking sector, while UBS has downgraded its earnings-per-share forecast for bank stocks.

CORPORATES
JP MORGAN AUSTRALIA LIMITED, MACQUARIE GROUP LIMITED – ASX MQG, UBS HOLDINGS PTY LTD

Investors see windfall from iron ore giants

Original article by Vesna Poljak, William McInnes, Lucas Baird, Elouise Fowler
The Australian Financial Review – Page: 13 & 20 : 17-Feb-20

Futures pricing suggests that the Australian sharemarket will shed about 0.2 per cent when trading resumes on 17 February, after the benchmark S&P/ASX 200 approached a record high in the previous session. The earnings season will be a key focus for investors in the next week, with speculation that BHP and Fortescue Metals Group will increase their dividend payouts due to a strong iron ore price. The impact of the bushfires and the coronavirus on some companies will also be closely scrutinised.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, BHP GROUP LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG

ASX could hit 7000, but don’t get too excited

Original article by Luke Housego
The Australian Financial Review – Page: 13 & 26 : 7-Jan-20

Market strategists are generally upbeat about the outlook for Australian equities in 2020, with the majority forecasting that the S&P/ASX 200 will reach 7,000 points. However, Chris Nicol of Morgan Stanley expects the benchmark to end the year at just 6,700 points, while Hasan Tevfik of MST Marquee has a year-end target of 7,100. Meanwhile, Damien Boey of Credit Suisse has forecast earnings-per-share growth of seven per cent.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, MORGAN STANLEY AUSTRALIA LIMITED, MST MARQUEE, CREDIT SUISSE (AUSTRALIA) LIMITED

$45bn ASX hit as trade war flares

Original article by David Rogers
The Australian – Page: 17 & 25 : 4-Dec-19

The Australian sharemarket recorded its third-biggest one-day fall in the year to date on 3 December; it was driven by factors such as the interest rate outlook and the latest tariff moves in the US. However, Kyle Rodda of IG Markets says the local bourse was overdue for a pullback after the recent strong gains. Wall Street and European stocks also fell sharply, although Asian markets recorded more modest declines, while the Australian dollar reached a three-week high. Richard Coppleson of Bell Potter still expects the local market to reach a new record high by the end of 2019.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, IG MARKETS LIMITED, BELL POTTER SECURITIES LIMITED, RESERVE BANK OF AUSTRALIA

Local bourse is ready to test record highs

Original article by David Rogers
The Australian – Page: 28 : 26-Nov-19

The benchmark S&P/ASX 200 index has gained 19 per cent so in 2019, and it is just two per cent shy of the record high of 6,875.5 points in late July. A number of factors could see the local bourse reach a new peak, including a resolution to the US-China trade war and the potential for policy stimulus in December’s mid-year fiscal and economic outlook. However, the federal government is unlikely to pursue stimulus measures before the May 2020 Budget, as it continues to focus on a surplus.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, RESERVE BANK OF AUSTRALIA, MORGAN STANLEY AUSTRALIA LIMITED, CITIGROUP PTY LTD

Doubts remain as AGL embraces costly transition to energy future

Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 22 : 1-Nov-19

Macquarie Wealth Management has reiterated its ‘underperform’ rating on AGL Energy, following the power company’s annual investor briefing. Analysts note that AGL will have to spend billions on clean energy sources to replace the coal and gas-fired power stations that it intends to close over the next few years. RBC Capital Markets has a ‘sector perform’ recommendation on AGL, with analyst James Nevin saying AGL appears to be positioning itself to respond to the changing and uncertain market.

CORPORATES
AGL ENERGY LIMITED – ASX AGL, MACQUARIE WEALTH MANAGEMENT, RBC CAPITAL MARKETS