2019 has started on a bright note with the ASX 200 closing out the March quarter up 9.5%, the best quarter since September 2009. The sharp bounce has left many wondering where to from here. Our short-term view reflects a more cautious outlook as we think the upside has been priced... Show More
Australian shares have generally followed the pattern of global equities, following a wave of Trump-induced optimism. While we have confidence in a cyclical turnaround over the medium term, we need to see signs of better earnings momentum before getting more comfortable with a much broader-based rally. In this environment, investors... Show More
We’re encouraged by what we see in the market, the ‘Trump-bump’ has buoyed market sentiment. The reinflation born in the US is a good thing for markets, we’re encouraged that monetary policy no longer seems to be the only game in town as fiscal stimulus gains favour. While the reflation... Show More
The constant swirl of macro noise will likely lead to more market gyrations over the next few months. Despite the overall sense of cautiousness, any severe swings will be trading opportunities for companies with sound fundamentals in an otherwise subdued economic backdrop. The pace of earnings growth across the market... Show More
The equity market ran strongly into the FY16 reporting season, up 8.7% to August from the shock 'Brexit' decision. In our reporting season preview last month we noted the importance of improved company earnings to justify the higher valuations. While on the whole there were fewer disappointing results compared with... Show More
It's been a quiet week on the ASX as companies are in blackout pre-reporting, many fund managers take a break for school holidays, and LIC providers prepare for their monthly updates next week. The ASX 200 was relatively flat, down 0.4% at the time of writing, having not risen or... Show More
Stockbroker Morgans Financial has added BHP to their High-Conviction Stocks this month as Senior Analyst Adrian Prendergast retains an ‘Add’ rating on the stock. “The current bout of risk off has created an opportunity to add BHP to portfolios at a low point in its recent trading range. The company... Show More
NEXTDC is a Data-Centre-as-a-Service (DCaaS) provider offering a range of services to corporate, government and IT companies. We have recently added the stock to our list of high conviction ex-100 opportunities and highlight a number of reasons to buy NEXTDC. 1) In a high barrier to entry business, leveraged to... Show More
Healthcare was in the spotlight this month due to falls in some of the big names on the back of a rising US dollar. There’s around an 80% correlation between healthcare stocks and the currency, but while we do see some further potential downside for the AUD, in our view... Show More
Attention turns from global factors to the domestic reporting season this month. Heightened trading volumes indicate many investors are adjusting their portfolios prior to the first opportunity to understand how macro events have affected earnings. Reporting season commentary from management will be a critical factor to frame the outlook for... Show More