The S&P/ASX All Ordinaries Accumulation Index closed flat for the week. On Tuesday, the Reserve Bank of Australia (RBA) left the cash rate unchanged, while reiterating its upbeat outlook for 3% gross domestic product growth (GDP) and rising inflation. The launch of Amazon in Australia on Tuesday failed to inspire confidence in the online retailer, with an underwhelming initial website offering. We expect Amazon's offer will continue to expand over time as they build a presence in Australia.
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Power to Decmil
On Tuesday, industrial company Decmil Group Limited (ASX: DCG) announced it entered into a memorandum of understanding (MOU) with Maoneng Australia to design and construct a 250-megawatt solar power plant located in New South Wales. The $275 million solar project is due to commence in March 2018 and will be one of Australia’s largest solar power plants. We believe this opportunity represents a significant expansion of Decmil’s presence in the renewable energy market. Shares in Decmil Group closed up 3.0% for the week. We own Decmil Group as a research-driven investment WAM Microcap.
Baillieu Holst podcast
I recently sat down with Nicolas Burgess and Piers Flanagan from Baillieu Holst to provide an overview of our listed investment companies (LICs), and with how we invest. To listen to the podcast, click here.