Ord Minnet say structural shifts in markets are far more powerful than Macro factors when it comes to influencing company earnings

Ord Minnet say structural shifts in markets are far more powerful than Macro factors when it comes to influencing company earnings. Ords have identified a few interesting pointers with respect to market structure shift. First the good news: In building materials, Adelaide Brighton (and competitors) are confirming price increases on good volumes. Origin Energy is seeing reduced churn on retail clients in the energy sector. In scrap metals - Sims Metals have cited competitors pulling out of the market. On structures that are worsening - Banks are facing rising competitive pressures on mortgages from players outside the Big 4. Insurers, Suncorp and IAG struggled for growth on volumes and got push back with respect to price rises on premiums. Tatts revenue fell, signaling the rise of online gaming. These inflexion points may be slow moving, however, in a market riddled with oligopolies they can have meaningful implications for investors.


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