STOCKS – AUSTRALIA

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

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

Dividend lure keeps capex hungry

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 27 : 30-Mar-16

Australia’s benchmark S&P/ASX 200 boasts a dividend yield of 4.98 per cent at present, and it is tipped to be 4.66 per cent for the 2016 calendar year. Yield-hungry investors continue to shun bonds in favour of equities, and Citigroup has suggested that this focus on yield is deterring companies from increasing their capital expenditure. Australian companies anticipate capex of $A124bn in 2015-16, and $A82.6bn in 2016-17.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, CITIGROUP PTY LTD, AUSTRALIAN BUREAU OF STATISTICS, UBS GLOBAL ASSET MANAGEMENT (AUSTRALIA) LIMITED

Deutsche tips value stocks to outperform

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Original article by Jessica Sier
The Australian Financial Review – Page: 31 : 15-Mar-16

Australian equities with high price-earnings ratios have significantly outperformed the broader sharemarket in the last several years. However, Deutsche Bank says investors should consider buying into value stocks, forecasting that they are set to deliver the best returns. Deutsche Bank favours stocks such as Boral, Harvey Norman, Flight Centre Travel Group and AGL Energy.

CORPORATES
DEUTSCHE BANK AG, BORAL LIMITED – ASX BLD, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, FLIGHT CENTRE TRAVEL GROUP LIMITED – ASX FLT, AGL ENERGY LIMITED – ASX AGL, FORAGER FUNDS MANAGEMENT PTY LTD, WHITEHAVEN COAL LIMITED – ASX WHC, SOUTH32 LIMITED – ASX S32, DOMINO’S PIZZA ENTERPRISES LIMITED – ASX DMP, COCHLEAR LIMITED – ASX COH, TREASURY WINE ESTATES LIMITED – ASX TWE, CSL LIMITED – ASX CSL, REA GROUP LIMITED – ASX REA, RAMSAY HEALTH CARE LIMITED – ASX RHC

ASX200 payout slide set to dwarf counterparts

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Original article by Vesna Poljak
The Australian Financial Review – Page: 30 : 1-Mar-16

A number of companies in the benchmark S&P/ASX 200 have increased their dividends in 2015-16, despite the financial market volatility. However, Hasan Tevfik of Credit Suisse expects the combined dividend payout of S&P/ASX 200 companies to fall from $A79bn in 2014-15 to just $A73bn. Meanwhile, the total capital returned to shareholders will be boosted by share buybacks.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, CREDIT SUISSE (AUSTRALIA) LIMITED, BHP BILLITON LIMITED – ASX BHP, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Property returns trounce shares

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Original article by Simon Evans
The Australian Financial Review – Page: 29 : 11-Feb-16

The Australian sharemarket has delivered a total return of 58 per cent over the last decade. However, residential property prices in Melbourne and Sydney have risen by 92 per cent over the same period. Domain Group’s chief economist Andrew Wilson does not expect the housing market to enjoy such gains in the next decade, warning that growth is likely to be much lower. Perpetual’s Matt Sherwood says equities investors should also expect lower growth in dividends in the near-term.

CORPORATES
DOMAIN.COM.AU, PERPETUAL LIMITED – ASX PPT, STANDARD AND POOR’S ASX 200 INDEX, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Growth, earnings fears depress ASX darlings

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 30 : 9-Feb-16

Australia’s benchmark S&P/ASX 200 Index has shed six per cent so far in 2016. However, some of the stocks that were among the best performers in 2015 have fallen by more than 10 per cent in 2016, including Domino’s Pizza Enterprises and Blackmores. In contrast, mining stocks – and gold producers in particular – have achieved some of the strongest gains in the year to date.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, DOMINO’S PIZZA ENTERPRISES LIMITED – ASX DMP, BLACKMORES LIMITED – ASX BKL, SUPER RETAIL GROUP LIMITED – ASX SUL, NEWCREST MINING LIMITED – ASX NCM, NORTHERN STAR RESOURCES LIMITED – ASX NST, EVOLUTION MINING LIMITED – ASX EVN, SOUTH32 LIMITED – ASX S32, MINERAL RESOURCES LIMITED – ASX MIN, BENNELONG AUSTRALIAN EQUITY PARTNERS PTY LTD, WINGATE ASSET MANAGEMENT PTY LTD, NASDAQ COMPOSITE INDEX, FACEBOOK INCORPORATED, AMAZON.COM INCORPORATED, NETFLIX INCORPORATED, LINKEDIN LIMITED, ASIA PACIFIC PRUDENTIAL SECURITIES

Investor sentiment hits a record low

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Original article by Ruth Liew
The Australian Financial Review – Page: 16 : 3-Feb-16

A survey by Investment Trends has found that the average investor expects the Australian sharemarket to gain just 1.2 per cent in 2016. However, Recep Peker of Investment Trends notes that 33 per cent of investors still intend to invest in equities. The survey also shows that 70 per cent of respondents have identified the outlook for the Chinese economy as their biggest concern, while the potential for another global financial crisis or market crash was cited by 54 per cent.

CORPORATES
INVESTMENT TRENDS PTY LTD, HLB MANN JUDD, RESERVE BANK OF AUSTRALIA, HSBC HOLDINGS PLC, SHANGHAI COMPOSITE INDEX, CSI 300 INDEX

Resources sector delivers top stock picks for the bold

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Original article by Simon Evans
The Australian Financial Review – Page: 26 : 29-Jan-16

Credit Suisse has identified Kula Gold as the Australian-listed stock that it expects to perform the best in 2016, forecasting a return of 362 per cent. This based on an analysis of 180 stocks. The other five stocks that Credit Suisse expects to achieve the highest returns for the calendar year are Altona Mining, WorleyParsons, Whitehaven Coal, Bradken and Senex Energy. Meanwhile, Brambles and Evolution Mining are among the stocks that are tipped to underperform.

CORPORATES
CREDIT SUISSE (AUSTRALIA) LIMITED, KULA GOLD LIMITED – ASX KGD, ALTONA MINING LIMITED – ASX AOH, WORLEYPARSONS LIMITED – ASX WOR, WHITEHAVEN COAL LIMITED – ASX WHC, BRADKEN LIMITED – ASX BKN, SENEX ENERGY LIMITED – ASX SXY, BRAMBLES LIMITED – ASX BXB, EVOLUTION MINING LIMITED – ASX EVN, PACIFIC ROAD CAPITAL MANAGEMENT PTY LTD, FRANKLIN TEMPLETON ASSET MANAGEMENT LIMITED, OZ MINERALS LIMITED – ASX OZL, TRANSURBAN GROUP LIMITED – ASX TCL, PACIFIC EQUITY PARTNERS PTY LTD, BAIN CAPITAL LLC

Forget the index, it’ll be a picker’s game

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Original article by Vanessa Desloires, Stephen Cauchi
The Australian Financial Review – Page: 20 : 4-Jan-16

Australia’s benchmark S&P/ASX 200 Index ended 2015 at 5,295.9 points. Goldman Sachs forecasts that it will rise to 5,600 in 2016, and Citi expects it to reach 5,900. Meanwhile, David Bryant of Australian Unity says factors such as low interest rates and sustained weakness in commodity prices will weigh on sharemarket returns in 2016. Bryant is particularly bearish about returns from resources and banking stocks.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, GOLDMAN SACHS AUSTRALIA GROUP HOLDINGS PTY LTD, DEUTSCHE BANK AG, AUSTRALIAN UNITY LIMITED, CREDIT SUISSE (AUSTRALIA) LIMITED, PRIME VALUE ASSET MANAGEMENT LIMITED, COMMONWEALTH SECURITIES LIMITED