STOCKS – AUSTRALIA

ASX rotation could see CBA investors jump on mining train

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Original article by Alex Gluyas
The Australian Financial Review – Page: 23 : 2-Jul-25

S&P/ASX 200 bank stocks gained 26 per cent during the 2024-25 financial year, while the resources sector fell eight per cent. However, some analysts believe that investors are set to shift from banks to resources stocks in 2025-26, amid speculation that the Commonwealth Bank’s outperformance will not be sustained. The stock gained 45 per cent in 2024-25, with its share of the benchmark index rising from nine per cent to nearly 12 per cent.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

ASX faces dividend horror story as companies slash payouts

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Original article by Alex Gluyas
The Australian Financial Review – Page: 21 : 5-Mar-25

The combined dividend payout for companies in the benchmark S&P/ASX 200 Index was just $31.2bn in the February reporting season. Bell Potter strategist Richard Coppleson notes that it is the lowest payout for this period since 2021, at the height of the COVID-19 pandemic. The three major listed iron ore miners reduced their dividends in response to a sharp fall in the price of the steel input during 2024. Citigroup expects further decline in the mining sector’s dividends, amid expectations that the iron ore price will also fall as new supply enters the market later in 2025. The firm also anticipates lower dividends from bank stocks, which dominate the ASX along with resources stocks.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, BELL POTTER SECURITIES LIMITED, CITIGROUP PTY LTD

Returns the world’s best over 121 years

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Original article by Cliona O’Dowd
The Australian – Page: 20 : 5-Mar-21

Data from Credit Suisse shows that the Australian sharemarket has outperformed other bourses over the long-term, with real annual returns of 6.6 per cent since 1900 in US dollar terms. The ASX’s annualised return over this period was 6.8 per cent in local currency terms, behind the 7.1 per cent return from the South African bourse. Looking ahead, Credit Suisse says Generation Z can expect annualised equity returns of about three per cent, compared with annualised returns of 7.1 per cent since 1950 for Baby Boomers.

CORPORATES
CREDIT SUISSE (AUSTRALIA) LIMITED

Wipe-out on way as Telstra, big banks tank

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Original article by James Kirby
The Australian – Page: 24 : 17-Oct-18

The dividend yields of Australian stocks that were once regarded as bond proxies is testing seven per cent, while the dividend yield across the broader sharemarket has risen to 4.45 per cent. However, the share prices of former bond proxies such as Telstra and the major banks have fallen sharply, and the loss of sharemarket value may offset any dividend gains. An increasingly competitive telco market is weighing on Telstra, while the banks face a number of headwinds, including the prospect of increased regulation and the impact of the financial services royal commission.

CORPORATES
TELSTRA CORPORATION LIMITED – ASX TLS, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, BANK OF QUEENSLAND LIMITED – ASX BOQ, TPG TELECOM LIMITED – ASX TPM, VODAFONE AUSTRALIA LIMITED, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, JB HI-FI LIMITED – ASX JBH, FINANCIAL OMBUDSMAN SERVICE LIMITED, RAMS HOME LOANS PTY LTD, SUNCORP GROUP LIMITED – ASX SUN, BANKWEST, BANK OF MELBOURNE LIMITED, HSBC AUSTRALIA HOLDINGS PTY LTD, LATITUDE FINANCIAL PARTNERS

A whiff of optimism behind PE expanders

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Original article by David Rogers
The Australian – Page: 27 : 28-Aug-18

The average forward price-earnings multiple of the 25 most expensive stocks in the S&P/ASX 300 has risen by 9.8 per cent since these companies reported their latest financial results, while the PE multiple of the indice’s 25 cheapest stocks has contracted. Jason Steed of JP Morgan has attributed the PE expansion to factors such as momentum buying, short covering, deployment of high cash balances and the recent political uncertainty. Meanwhile, Steed notes that 30 per cent of the stocks that JP Morgan covers have exceeded expectations during the August reporting season, while 28 per cent have failed to meet expectations.

CORPORATES
STANDARD AND POOR’S ASX 300 INDEX, JP MORGAN AUSTRALIA LIMITED, DOMINO’S PIZZA ENTERPRISES LIMITED – ASX DMP, MONADELPHOUS GROUP LIMITED – ASX MND, COCHLEAR LIMITED – ASX COH, COCA-COLA AMATIL LIMITED – ASX CCL, TPG TELECOM LIMITED – ASX TPM, REA GROUP LIMITED – ASX REA, MYER HOLDINGS LIMITED – ASX MYR, APA GROUP – ASX APA, CHEUNG KONG INFRASTRUCTURE HOLDINGS LIMITED, HUAWEI TECHNOLOGIES COMPANY LIMITED, ZTE CORPORATION, DEUTSCHE BANK AG

Cyclical stocks back in play as bulls charge on

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Original article by David Rogers
The Australian – Page: 22 : 19-Jan-18

Analysis by Hasan Tevfik of Credit Suisse shows that stocks with the lowest volatility have traded at an average price-earnings premium of nearly 10 per cent over the last decade. In contrast, stocks with the highest volatility have traded on an average PE discount of nearly 20 per cent. Tevfik says investors should rebalance their portfolios in favour of higher-volatility cyclical stocks rather than so-called bond proxies. Stocks he favours include BHP Billiton, Whitehaven Coal, Qantas and Harvey Norman.

CORPORATES
CREDIT SUISSE (AUSTRALIA) LIMITED, BHP BILLITON LIMITED – ASX BHP, WHITEHAVEN COAL LIMITED – ASX WHC, QANTAS AIRWAYS LIMITED – ASX QAN, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, BLUESCOPE STEEL LIMITED – ASX BSL, ORIGIN ENERGY LIMITED – ASX ORG, STOCKLAND – ASX SGP, MAGELLAN FINANCIAL GROUP LIMITED – ASX MFG, STANDARD AND POOR’S 500 INDEX, CHICAGO BOARD OPTIONS EXCHANGE VOLATILITY INDEX, STANDARD AND POOR’S ASX 200 INDEX

New financial year ‘reset’ for investors

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Original article by Myriam Robin
The Australian Financial Review – Page: 27 : 4-Jul-17

Australia’s S&P/ASX 200 shed 3.4 per cent in May 2017 and 0.1 per cent in June, due to factors such as tax-loss selling in the lead-up to the end of the financial year. Ophir Asset Management’s Andrew Mitchell is upbeat about the outlook for local equities in July, noting that fund managers will begin reweighting their portfolios. Institutional investors may also buy into stocks prior to the reporting season in August.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, OPHIR ASSET MANAGEMENT PTY LTD, MORGAN STANLEY AUSTRALIA LIMITED, TPG TELECOM LIMITED – ASX TPM, ACONEX LIMITED – ASX ACX, SANTOS LIMITED – ASX STO, APN OUTDOOR GROUP LIMITED – ASX APO, DOMINO’S PIZZA ENTERPRISES LIMITED – ASX DMP, AVEO GROUP – ASX AOG

Super funds slow to shake off ‘home bias’

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Original article by Jonathan Shapiro
The Australian Financial Review – Page: 35 : 28-Jun-17

A report by Vanguard shows that Australian superannuation funds continue to favour local shares over international equities. This is particularly so in the case of self-managed super funds. Australia’s dividend imputation tax system is a major contributor to this "home bias". However, Vanguard notes that the domestic sharemarket is much more heavily weighted toward banks and mining stocks, and investors can reduce portfolio volatility by increasing their exposure to international equities.

CORPORATES
VANGUARD INVESTMENTS AUSTRALIA LIMITED, PROVIDENCE FUNDS MANAGEMENT, STATE STREET GLOBAL ADVISORS AUSTRALIA LIMITED, BLACKROCK INVESTMENT MANAGEMENT (AUSTRALIA) LIMITED, AMP LIMITED – ASX AMP, COLONIAL FIRST STATE GLOBAL ASSET MANAGEMENT, IFM INVESTORS PTY LTD

Time running out for tax-loss selling

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Original article by Jessica Sier
The Australian Financial Review – Page: 20 : 19-Jun-17

Katana Asset Management’s Romano Sala Tenna notes that Australian investors traditionally engaged in tax-loss selling in the final week of June. However, he says investors are increasingly selling underperforming stocks well before the end of the financial year. Quantitative analysis shows that stock which experience a sharp sell-off in May and June typically rebound over the first few months of the new fiscal year. Stocks that have been subject to tax-loss selling in 2017 include Mayne Pharma, APN Outdoor Group and Harvey Norman.

CORPORATES
KATANA ASSET MANAGEMENT LIMITED, MAYNE PHARMA GROUP LIMITED – ASX MYX, APN OUTDOOR GROUP LIMITED – ASX APO, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, JB HI-FI LIMITED – ASX JBH, SUPER RETAIL GROUP LIMITED – ASX SUL, ORIGIN ENERGY LIMITED – ASX ORG, SPOTLESS GROUP HOLDINGS LIMITED – ASX SPO, SLATER AND GORDON LIMITED – ASX SGH, AUSTRALIAN TAXATION OFFICE

ASX ripe for activist investors: Credit Suisse

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Original article by David Rogers
The Australian – Page: 27 : 15-Jun-17

Hasan Tevfik of Credit Suisse expects more activist investors to target Australian-listed stocks in the wake of Elliott Management’s push for a restructuring at BHP Billiton. He says activist investment is gaining momentum in Australia and it is inevitable that local superannuation funds will adopt this strategy given the returns achieved by activist hedge funds in North America. Caltex, AMP, News Corporation and Lendlease are among the companies that are seen as potential targets for activist investors.

CORPORATES
CREDIT SUISSE (AUSTRALIA) LIMITED, BHP BILLITON LIMITED – ASX BHP, ELLIOTT MANAGEMENT CORPORATION, CALTEX AUSTRALIA LIMITED – ASX CTX, AMP LIFE LIMITED, NEWS CORPORATION – ASX NWS, LEND LEASE GROUP LIMITED – ASX LLC, CSR LIMITED – ASX CSR, MYER HOLDINGS LIMITED – ASX MYR, AMP CAPITAL INVESTORS LIMITED, TRIBECA INVESTMENT PARTNERS PTY LTD, ESCALA PARTNERS LIMITED, ARDENT LEISURE GROUP – ASX AAD, BRICKWORKS LIMITED – ASX BKW, WASHINGTON H SOUL PATTINSON AND COMPANY LIMITED – ASX SOL, PERPETUAL LIMITED – ASX PPT, FEDERAL COURT OF AUSTRALIA, LIM ADVISORS LIMITED, AMP CAPITAL CHINA GROWTH FUND