global data somewhat weak asx set to open lower … · hgg henderson group 05 may 2016 27 may 2016...
TRANSCRIPT
Global data somewhat weak
ASX set to open lower
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U.S. stocks fell, with the S&P 500 sinking to a three-week low, amid
rekindled angst over the sluggish pace of global growth and an
uninspiring flow of corporate earnings.
Weaker-than-forecast factory data today in the U.K. and China
reminded investors of the worldwide malaise that had a hand in
sending equities to their worst-ever start to a year. Commodity shares
tumbled, with energy producers falling the most in eight weeks as
crude oil retreated, while banks posted the biggest slide since April 7.
Apple Inc. snapped its longest losing streak since 1998, and Pfizer Inc.
rallied 2.7 percent on earnings that beat estimates and a boosted
outlook.
The S&P 500 declined 0.9 percent to 2,063.37 at 4 p.m. in New York,
falling for the third time in four days.
European stocks capped their worst three-day decline since February
as miners plunged and lenders fell on earnings reports. The Stoxx
Europe 600 Index slipped 1.7 percent at the close of trading, as all 19
industry groups fell.
Most International Markets Retreat Amid Earnings, Data
YESTERDAY IN THE INTERNATIONAL MARKETS Global Ticker Daily Change
S&P500 -0.87%
Dow Jones -0.78%
NASDAQ -1.13%
STOXX 600 -1.66%
FTSE100 -0.90%
DAX30 -1.97%
Crude Oil -2.55%
Gold +0.70%
The Australian share market had a positive session yesterday, after the
Reserve Bank of Australia (RBA) announced a cut of the official cash
rate of 25 bps to a record low 1.75%. Most sectors finished higher as
the market jumped following the RBA’s statement.
The benchmark index S&P/ASX 200 gained 2.1% or 110.8 points and
was last quoted at 5354 points.
Most sectors finished in the green with the exception of Energy, down
0.7% after crude oil prices declined overnight.
The Financials sector was the best performer, surging 3.1%, as all the
big four banks experienced strong gains.
Healthcare stocks were in favour yesterday as CSL Limited (CSL) rose
1.1%, Cochlear Limited (COH) added 1.2%, and Resmed Inc. (RMD)
gained 0.2%.
Materials as a whole added 0.3%, despite BHP Billiton Ltd (BHP)
declining 1.6% and Rio Tinto Ltd (RIO) shedding 0.2%.
ASX Closes at 2016 High after RBA Rate Cut
THE ASX YESTERDAY IN REVIEW AUS Ticker Change
ASX200 +2.11%
ALLORDS +1.94%
CBA +2.13%
BHP -1.63%
WBC +1.30%
NAB +2.37%
BPF -1.35%
RSG +1.00%
XTD +11.63%
DAILY PRICE ACTIVITY AUSTRALIA
ASX200 price yesterday
UPCOMING DIVIDENDS
Courtesy of http://www.morningstar.com.au/Stocks/UpcomingDividends
Tasty dividends & distributions
DATE CODE COMPANY ANNOUNCEMENTASX CODE COMPANY NAME EX DIVIDEND PAY DATE AMOUNT FRANKING %
HGG Henderson Group 05 May 2016 27 May 2016 14.76 0.00
WAT Waterco 05 May 2016 15 Jun 2016 2.00 100.00
YTMQF3 -- 06 May 2016 24 May 2016 387.50 0.00
GSIO20 TIB +4.00% 08-20 3M 11 May 2016 20 May 2016 164.10 --
TMM Tasmania Mines 11 May 2016 27 May 2016 3.00 100.00
GSBU20 TB 1.75% 11-20 6M 12 May 2016 23 May 2016 87.50 --
GSBU27 TB 2.75% 11-27 6M 12 May 2016 23 May 2016 138.00 --
GSIC22 TIB +1.25% 02-22 3M 12 May 2016 23 May 2016 33.97 --
GSIO35 TIB +2.00% 08-35 3M 12 May 2016 23 May 2016 52.93 --
GSIO40 TIB +1.25% 08-40 3M 12 May 2016 23 May 2016 31.75 --
GSIU18 TIB +1.00% 11-18 3M 12 May 2016 23 May 2016 26.16 --
TWD Tamawood 12 May 2016 02 Jun 2016 10.00 100.00
WHATS HOT?
DATE CODE COMPANY ANNOUNCEMENT
WHATS NOT?
SDF.asx - steaming hot SRF.asx - cooling down
Shares of Steadfast Group rose 22% year-to-
date. The insurance group has been witnessing
strong growth in Gross Written Premium over
the past five years. Steadfast also reported a
184% expansion in net profit, earned on the
back of a 83% rise in revenues during the 1H16
period.
Shares of Surfstitch Group Limited slumped
more than 50% yesterday after the company
announced a second profit warning, stating that
the retailer now expects its earnings to fall more
than 75% in 2016. The company is also
struggling to integrate its acquired businesses.
ECONOMIC NEWS
What to look out for:
DATE CODE COMPANY ANNOUNCEMENT
No significant economic
news for Australia
European services data
and retail sales to be
released in the evening
US nonfarm employment
data considered the most
accurate benchmark for
jobs data. Analysts expect
that 196k jobs were added
during the month
NEWSWORTHY
This caught our attention..
DATE CODE COMPANY ANNOUNCEMENTWoolworths Announces $14.9 Billion in Sales
for Third Quarter
Australian retail giant Woolworths Limited (ASX:WOW) released
its third quarter sales update for the 13-week period ended 3 April
2016. Total third quarter sales declined 0.3% to $14.9billion as
major rebuilding and reinvestments continue to weigh on sales
momentum.
The company’s Australian Food and Liquor sales rose 0.4% for
the quarter, to $10.7 billion as consumer transactions continued to
increase but were offset by lower prices and items per basket.
New Zealand supermarket sales rose 3.8% for the quarter, as
both price and service perceptions improved as Woolworths
continued to lower its price of groceries through its ‘Price Down’
program.
General Merchandise sales shrunk 4.6% to $865 million, as the
comparable sales were impacted by a disappointing customer
response to the new season ranges.
Click Here to Read the Full Story
LATEST UPDATE FROM WISE-OWL
Resolute Mining Ltd (RSG)
CODE COMPANY ANNOUNCEMENTGrowth Portfolio Update: Resolute Mining Ltd
(RSG) - Hold
ASX:RSG
Wise-owl recommend to buy Resolute Mining Limited (ASX:RSG)
on 18 February 2015 at $0.46. This position belongs to our Growth
Portfolio and is currently 122% in profit in just under three months.
Since we initiated coverage Resolute is tracking as expected. At
the latest quarterly update, the company confirmed that it is on
track to strengthen its balance sheet, lower costs further and
achieve FY16 production guidance. The miner is directing surplus
cash flow towards early repayment of its debt.
RSG has risen substantially since Wise-owl subscribers received
our buy advice, and is now approaching our initial target of $1.10.
In line with our Growth Portfolio strategy, we recommend to move
the stop from $0.22 to $0.75, which locks in 60% profit.
Furthermore, we remove our target and recommend to hold until
further notice.
Hold | Last Price: $1.01 | Current Profit: 122% | Stop: $0.75
Click Here to View Report from Feb 2016
LATEST UPDATE FROM WISE-OWL
Teranga Gold Corporation (TGZ)
CODE COMPANY ANNOUNCEMENTGrowth Portfolio Update: Teranga Gold
(TGZ) - Hold
ASX:TGZ
Wise-owl recommended to buy Teranga Gold Corporation
(ASX:TGZ) on 05 May 2015 at $0.72. Our last recommendation
was a hold advice in April 2016. This position belongs to our
Growth Portfolio.
TGZ has risen 46% since our initial recommendation and is
approaching our initial target of $1.10. We are attracted to
Teranga's operating and financial performance, as the company
recently announced an upbeat quarterly update with record high
mill throughput, generating 70,727 ounces of gold. We recommend
to move the stop from $0.52 to $0.85, and thus locking in 18%
profit. We remove our target as we maintain our hold advice.
Teranga Gold Corporation ("Teranga", "the Company") is a
Canadian company focused on gold mining in Africa.
Hold | Last Price: $1.05 | Current Profit: 46% | Stop: $0.85
Click Here to View Report from May 2015
OUR VIEWS AT A GLANCE
Find below a summary of Wise-owl’s current market views
CODE COMPANY ANNOUNCEMENT
The ASX 200 remains in a medium-term downtrend
We continue to focus on small-mid cap stocks
There are individual opportunities on the ASX 200
We favour the risk/reward ratio for gold miners
We see value in European equities
We see little upside for US stocks
A WISE-OWL PUBLICATION
Presented by Simon Herrmann
DATE CODE COMPANY ANNOUNCEMENT
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