Bronson Financial Services

Australian Share Market Update 18th August, 2011

admin — Thu, 18 Aug 2011 23:19:02 +0000

The All Ordinaries index fell 52.4 points to end the day 1.2% lower to close at 4,319.4.

AMP Limited (AMP) gained 2.6% to close at $4.26 after reporting underlying net profit after tax of $455m for the six months ended 30 June 2011, a 19% improvement on the pcp. AMP declared an interim dividend of 15cps.

Wesfarmers Limited (WES) gained 0.4% to close at $30.41 after reporting FY11 net profit after tax of $1.92bn, up 23% on the pcp. WES declared a final dividend of 85cps (ff) to bring the full year payout to $1.50/share.

Major stock rises:

AMP Limited (AMP) $4.26 +2.65%
David Jones Limited (DJS) $2.83 +1.80%
Coca-Cola Amatil Limited (CCL) $11.60 +1.22%
Macarthur Coal Limited (MCC) $15.50 +0.98%
Downer EDI (DOW) $3.69 +0.82%

Major stock falls:

Alumina Limited (AWC) $1.80 -4.76%
BlueScope Steel Limited (BSL) $0.87 -4.37%
Seven West Media Limited (SWM) $2.87 -4.33%
Santos Limited (STO) $11.68 -3.79%
News Corporation (NWS) $15.90 -3.28%

If you do have any questions about this or would like to know more about us, please email me at admin@bronsonfs.com.au or give us a call on (07) 5577 8653

Please Note:

This publication has been prepared to provide you with general information only. It is not intended to take the place of professional advice and you should not take action on specific issues in reliance on this information. In preparing this information, we did not take into account the investment objectives, financial situation or particular needs of any particular person. Before making an investment decision, you need to consider (with or without the assistance of an adviser) whether this information is appropriate to your needs, objectives and circumstances. This information is provided for persons in Australia only and is not provided for the use of any person who is in any other country.

Australian Share Market Update August 17th, 2011

admin — Wed, 17 Aug 2011 07:55:43 +0000

The All Ordinaries index gained 54.5 points to end the day 1.26% higher at 4,371.8.

CSL Limited (CSL) ended the day 2.6% lower to close at $29.07 after reporting a 10.7% fall in FY11 profit. The fall in earnings was primarily due to a $116m unfavourable foreign exchange impact as a result of the strengthening Australian dollar. CSL declared a final dividend of 45cps, flat on the pcp.

SAI Global Limited (SAI) ended the day 7% higher to close at $4.60 after reporting FY11 net profit after tax of $48m, 42% higher than the pcp. SAI declared a final dividend of 8cps (ff), bringing total dividend for the year to 14.3cps (ff).

Woodside Petroleum Limited (WPL) gained 1.2% to close at $37.76 after reporting a stronger than expected 1H11 net profit after tax of US$828m, 8.1% lower than 1H10. WPL declared an interim dividend of 55cps.

Major stock rises:

Perpetual Ltd (PPT) $24.15 +5.50%
Fairfax Media (FXJ) $0.83 +5.06%
Brambles Limited (BXB) $6.93 +4.37%
David Jones Limited (DJS) $2.78 +3.73%
Caltex Australia Limited (CTX) $10.68 +3.69%

Major stock falls:

Boral Limited (BLD) $3.69 -4.90%
Paladin Energy Limited (PDN) $2.21 -3.07%
Downer EDI (DOW) $3.66 -2.92%
CSL Limited (CSL) $29.07 -2.65%
Cochlear Limited (COH) $72.69 -1.62%

If you do have any questions about this or would like to know more about us, please email me at admin@bronsonfs.com.au or give us a call on (07) 5577 8653

Please Note:

Australian Share Market Update, August 16th, 2011

admin — Tue, 16 Aug 2011 07:59:51 +0000

On a day when the banks disappointed and the rally of the past few days ended, we saw The All Ordinaries index end the day 29.5 points or 0.7% lower to close at 4,317.3.

Westpac Banking Corporation (WBC) ended the day 4.3% lower to close at $20.25 after reporting a 3.3% fall in its third quarter net profit. This result implies WBC should report a FY11 NPAT of round $6.3bn, which is slightly below current market expectations of $6.4bn.

Tabcorp Holdings Limited (TAH) gained 0.9% to close at $3.22 after reporting FY11 net profit Net Profit After Tax (NPAT) of $534.8m, up 13.9% (including one-off demerger impact) from the pcp. TAH declared a final dividend of 19cps, bringing the full year dividend to 43cps, a payout ratio of 61%.

Major stock rises:

Stockland Group (SGP) $ 2.86 +5.54%
Leighton Holdings (LEI) $22.50 +4.70%
Westfield Group (WDC) $8.14 +3.69%
UGL Limited (UGL) $12.68 +3.43%
Macquarie Group (MQG) $25.09 +3.38%

Major stock falls:

Alumina Limited (AWC) $1.87 -4.82%
Westpac Banking Corporation (WBC) $20.25 -4.35%
Newcrest Mining Limited (NCM) $38.70 -4.21%
OZ Minerals Limited (OZL) $11.90 -3.64%
Orica Limited (ORI) $24.25 -3.04%

If you do have any questions about this or would like to know more about us, please email me at admin@bronsonfs.com.au or give us a call on (07) 5577 8653

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Australian Share Market Update August 11, 2011

admin — Thu, 11 Aug 2011 09:10:28 +0000

After a wild night on Wall Street and a drop of over 80 points on the open, The All Ordinaries index ended the day 3.9 points or 0.09% lower to close at 4203.5.

Telstra Corporation Limited (TLS) closed 5.7% higher at $2.99, after announcing statutory net profit after tax for the year ended 30 June 2011 of $3,250m, a 17% decline on the prior year, exceeding analyst expectations. The company added 1.66 million new mobile phone and broadband internet customers in Australia during the fiscal year and 352,000 in Hong Kong, with annual revenue from mobile services rising 10.7% to $8.1 billion, from the previous year’s $7.32 billion.

GPT Group (GPT) ended the day 2.6% higher to close at $2.78 after it announced an upgrade to its earnings guidance for the six months ended 30 June 2011 and for the full 2011 year, reflecting the core strength and stability of the Group. The company gave interim guidance for Realised Operating Income for the six months ending 30 June 2011 to be in the range of $220m to $222m, 7-8% higher than the first half of 2010.

Major stock rises:

Telstra Corporation Limited (TLS) $2.99 +5.65%
News Corporation (NWS) $14.75 +3.80%
Newcrest Mining Limited (NCM) $40.74 +3.80%
Lynas Corporation Limited (LYC) $1.99 +2.58%
GPT Group (GPT) $2.78 +2.58%

Major stock falls:

David Jones Limited (DJS) $2.62 -6.43%
Alumina Limited (AWC) $1.79 -5.79%
Myer Holdings Limited (MYR) $2.12 -5.78%
QBE Insurance Group (QBE) $13.19 -4.97%
Sims Metal Management Limited (SGM) $14.31 -4.73%

When will the wild ride end?

If you do have any questions about this or would like to know more about us, please email me at admin@bronsonfs.com.au or give us a call on (07) 5577 8653

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Australian Share Market Update, August 10, 2011

admin — Wed, 10 Aug 2011 08:55:37 +0000

After another amazing night on Wall Street, The All Ordinaries index ended the day 110.6 points or 2.70% higher to close at 4207.3.

Commonwealth Bank of Australia (CBA) closed 2.01% higher at $48.23, after announcing statutory net profit after tax for the year ended 30 June 2011 was $6,394m, a 13% increase on the prior year. Cash net profit after tax for the year was $6,835m, an increase of 12%. Cash return on equity for the year ended 30 June 2011 was 19.5%, up 80 basis points, due to increasing profitability and effective capital management. A final dividend of $1.88 per share was declared, an increase of 11% on the prior year. Management expects the 2012 financial year to again be characterised by subdued system credit growth and intense competition.

Computershare Limited (CPU) closed 1.97% lower at $6.95, after announcing reported statutory basic earnings per share of 47.53 cents for the year ended 30 June 2011, a decrease of 10.4% on FY10. Management-adjusted earnings per share were 55.67 cents, a decrease of 3.7% over the prior corresponding period. A final dividend of 14 cents has been declared, unchanged from the final dividend of last year. Total revenues fell 0.1% on FY10 to $1,618.6m. Management has provided a cautious outlook for FY12 due to the impact and duration of current market volatility remaining unclear.

Major stock rises:

Iluka Resources Limited (ILU) $16.08 +12.45%
Harvey Norman (HVN) $1.96 +8.89%
JB Hi-Fi Limited (JBH) $15.45 +6.70%
Cochlear Limited (COH) $69.18 +6.43%
Alumina Limited (AWC) $1.90 +6.15%

Major stock falls:

Westfield Retail Trust (WRT) $2.22 -7.11%
Stockland Group (SGP) $2.68 -3.60%
Mirvac Group (MGR) $1.01 -3.37%
QBE Insurance Group (QBE) $13.88 -2.39%
Qantas Airways Limited (QAN) $1.57 -2.18%

I only wonder, what’s next?

If you do have any questions about this or would like to know more about us, please email me at admin@bronsonfs.com.au or give us a call on (07) 5577 8653

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Australain Share Market Update, August 9, 2011

admin — Tue, 09 Aug 2011 09:16:20 +0000

One of the most amazing days I have seen, after falling by close to 200 points, The All Ordinaries index ended the day 40 points or 0.99% higher to close at 4096.7.

Coca-Cola Amatil Limited (CCL) closed 1.62% lower at $10.69, after announcing an interim Net Profit after Tax (NPAT) of $234.1m before significant items, an increase of 5.5% on the prior corresponding period. Reported NPAT after significant items declined after including an $80.5 million after tax significant item relating to the restructure of the SPC Ardmona business. Management noted that the direction of current trading conditions in Australia remains uncertain.

Cochlear Limited (COH) closed 1.56% lower at $65.00, after announcing an NPAT of $180.1m, up 16% on the prior corresponding period. Cochlear implant unit sales were up 17%, to 24,661 units. Management noted that there remains significant clinical demand for its products from both developed and emerging markets.

Major stock rises:

CFS Retail Property Trust (CFX) $1.61 +5.94%
Westfield Retail Trust (WRT) $2.39 +5.29%
Toll Holdings Limited (TOL) $4.18 +4.50%
BlueScope Steel Limited (BSL) $0.97 +4.30%
Bank of Queensland Limited (BOQ) $7.14 +4.23%

Major stock falls:

Seven West Media Limited (SWM) $2.85 -5.32%
Primary Health Care Limited (PRY) $2.77 -4.15%
Harvey Norman (HVN) $1.80 -3.23%
Computershare Limited (CPU) $7.09 -3.14%
Ansell Limited (ANN) $12.47 -2.96%

If you do have any questions about this or would like to know more about us, please email me at admin@bronsonfs.com.au or give us a call on (07) 5577 8653

Please Note:

Australian Share Market Update August 8, 2011

admin — Mon, 08 Aug 2011 08:00:03 +0000

On the back of the news from the US, The All Ordinaries index ended the day 113 points or 2.7% lower to close at 4056.7

Its important to keep in mind that Standard & Poor’s downgrading of the US’s AAA credit rating to AA+ is based on its judgment that the debt ceiling deal agreed last week by law makers fails to cut spending enough to reduce the US’s record budget deficits.

JB Hi-Fi Limited (JBH) closed 2.4% lower at $14.00, after it announced its FY11 results today. The company reported a record normalised full year net profit after tax of $134.4m (FY10: $118.7m) from $3.0b of sales. Comparable store sales growth was -1.2%, reflecting the challenging retail environment. Management expects sales in FY12 to be circa $3.2b, an 8% increase on the prior year.

Bendigo and Adelaide Bank Limited (BEN) closed 1.5% lower at $7.95, after it announced its FY11 results today. The company reported an after tax profit of $342.1m for the 12-months ending 30 June 2011. Cash earnings were $336.2m, representing cash earnings per share of 92.3 cents, an increase of 10.8% on the prior corresponding period. Management expects earnings and the availability of funding to remain robust despite increased market volatility.

Best performers:

Aristocrat Leisure Limited (ALL) $2.31 +0.43%
ConnectEast Group (CEU) $0.51 0.00%
Computershare Limited (CPU) $7.32 -0.27%
Tabcorp Holdings Limited (TAH) $3.02 -0.66%
ResMed Limited (RMD) $2.66 -0.75%

Major stock falls:

Boart Longyear Limited (BLY) $3.32 -9.04%
Investa Office Fund (IOF) $0.57 -6.61%
Iluka Resources Limited (ILU) $14.61 -6.59%
Treasury Wine Estates Limited (TWE) $3.04 -6.17%
Seek Limited (SEK) $5.63 -5.85%

If you do have any questions about this or would like to know more about us, please email me at admin@bronsonfs.com.au or give us a call on (07) 5577 8653

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Stock Markets and Your Reactions – What to do next

admin — Mon, 08 Aug 2011 04:30:44 +0000

Here is a copy of an email I sent to all my clients this morning about the current stock market turmoil.

It is important to remember that while we cannot control the market snad all that goes on in the world, we can control our reactions to those events. Keep that in mind while you read on…

Like you we are watching nervousness and uncertainty play out on world markets, reminding us all that Australia is part of the global economy. We have spoken to a number of fund managers such as Russell Investments, who continue to monitor the situation and from these discussion want to share with you the following thoughts.

Market Action

A gloomy global economic outlook sent investors on a mass exodus out of risky markets Thursday and into the refuge of US government debt, sending yields to yet another round of new 2011 lows. The intense flight into safe-haven Treasurys forced benchmark 10-year yields down more than 50 basis points since last Friday; there hasn’t been such a large one-week drop in yields since November and December of 2008, when Lehman Brothers collapsed, sparking a financial-market frenzy. This morning, the 10-year US Treasury note yields 2.40%.

Investors across the globe have been buffeted by economic and political turmoil in recent days. In the US, fears have turned from worries about a possible default by the US government to a weakening economic outlook. A string of recent weaker than expected economic data have pointed to a possible slowing of the recovery. Over the weekend we saw the lowering of the US credit rating by Standard and Poors (S&P). It is important to note that S&P merely rate the risk profile of a country or company – they do not determine whether they get any funds, so I would not expect this too impact on the desirabilty of investors to still hold US Bonds. However nobody seems to know what will happen on the stock markets around the world when they open later today.

In Europe, leaders are still working through a longer term solution to the sovereign debt crisis impacting peripheral countries such as Greece, Portugal and Spain. Investors are increasingly nervous that troubles are spreading to Italy and Spain, driving down stocks across the region and sending borrowing costs of peripheral nations soaring.

European stock markets plunged 3.4%, the largest one-day drop in more than a year, while US major indices continued the falls, ending down around 4.5%.

The breaking of short term technical levels, automated trading systems and the imposition of automated sell trade curbs in the US, fed the worries of traders.

Keeping market moves in perspective

Despite last week’s extreme movements, there was nothing in terms of a fundamental change in the world economy that happened in the past 7 days. The fact is we remain in a volatile market environment, set against the backdrop of a grinding global recovery.
It is helpful to put last weeks’ moves against the backdrop of the following key fundamentals:

The recent softer US data is consistent with our long held view of many fund managers that economic data overseas will oscillate between good and bad for a while yet, but that the net effect is the continuation of a grinding recovery over the next year or more.
Despite Eurozone debt concerns, core countries such as Germany continue to deliver strong growth, and one of the best performing sharemarkets in the world over the past year – despite everything going on with Greece.
Equity valuations remain ok (on the cheap side of longer term averages). US earnings in particular remain robust with 75-80% of reporting companies in the current earnings season beating expectations – 43% of these by more than 5% (though most fund managers do expect US earnings growth to slow to a more sustainable pace going forward).
US government bond valuations are now considered to be at extremely expensive levels. The debt ceiling/deficit cutting issues will be worked through and US default is an extremely low probability going forward.
The central scenario for Europe is that sovereign debt worries will continue to muddle through for now, but with any agreement on a long term solution still a way off yet.
Emerging economies remain the key drivers of global growth. Central scenario is for a soft rather than hard landing in China (slowing to 8% pa or so – still impressive).
Its also real important to keep in mind that stock markets generally have 4 bad years in any 10 year period, with 6 good years. While every “crisis” is different, the cycle seems to remain constant. The issues now are economic and will fix over time. History has shown us that those who have rebuilt their portfolios have done so by taking the opportunity to buy quality investments at discounted prices. Those who have lost and sworn off investments forever and locked in the biggest losses are those who bought high and sold low.

Key Message

Whenever there are large market-driven movements like last night, it is likely there will be continued volatility until things settle down again.
The key point you as an for investor is not to panic. Many of the people we speak with remain confident that while market conditions will continue to be volatile over the rest of the year, now is not the time to make knee-jerk reactions and run to cash (as many did in the depths of the GFC – with terrible results in the ensuing recovery).
Keep your head, stick to your long term strategic plan, and look through the current noise to keep headlines in perspective (especially against the backdrop of market valuations and economic fundamentals). There is nothing in the past week or so that should change your medium to long term investment strategy.

Volatility of this nature has us all concerened and we will remain in regular contact with various fund managers over the days and weeks ahead. We will take all necessary steps to keep you appraised of any new developments and that you give me a call to discuss anything that you need to at anytime.

Please don’t let newspaper stories and headlines be your source of information, as we kow with al stories, sometimes the truth gets in the ways of metaphors, so as I said before, give me a call.

If you do have any questions about this or would like to know more about us, please email me at admin@bronsonfs.com.au or give us a call on (07) 5577 8653

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Australian Share Market Update March 29, 2011

admin — Tue, 29 Mar 2011 23:08:05 +0000

The All Ordinaries index gained 19.3 points to end the day 0.4% higher at 4,851.2.

JB Hi-Fi Limited (JBH) gained 7.4% to close at $19.83 after announcing plans to buy back up to 10% of its shares on issue, or approximately $170m worth of its shares, through an off-market share buy-back. JBH also downgraded its full year profit guidance on the back of costs associated with restructuring its underperforming Clive Anthonys business.

Major stock rises:

JB Hi-Fi Limited (JBH) $19.83 +7.42%
Ten Network Holdings Limited (TEN) $1.28 +4.90%
Crown Limited (CWN) $8.06 +2.28%
Ramsay Health Care Limited (RHC) $18.65 +2.19%
Seek Limited (SEK) $6.53 +2.19%

Major stock falls:

Paladin Energy Limited (PDN) $3.64 -2.93%
Goodman Group (GMG) $0.69 -2.11%
Macarthur Coal Limited (MCC) $11.55 -1.95%
Goodman Fielder (GFF) $1.19 -1.24%
OneSteel Ltd (OST) $2.44 -2.44%

If you do have any questions about this or would like to know more about us, please email me at admin@bronsonfs.com.au or give us a call on (07) 5577 8653

Please Note:

Australian Share Market Update, March 25, 2011

admin — Sun, 27 Mar 2011 23:30:13 +0000

The All Ordinaries index gained 46.1 points to end the day 1% higher at 4,840.3.

BHP Billiton Limited (BHP) gained 0.1% to close at $44.76 after announcing US$7.4 billion (BHP Billiton share US$6.6 billion) of capital investment to continue production growth in the company’s Western Australia Iron Ore operations.

Major stock rises:

Alumina Limited (AWC) $2.39 4.37%
Transfield Services Limited (TSE) $3.21 4.22%
Primary Health Care Limited (PRY) $3.00 3.45%
SIMS Metal Management Limited (SGM) $17.16 3.12%
QBE Insurance Group (QBE) $17.60 2.98%

Major stock falls:

Metcash Limited (MTS) $4.01 -1.47%
Myer Holdings Limited (MYR) $3.17 -1.25%
Mirvac Group (MGR) $1.24 -1.20%
Incitec Pivot Limited (IPL) $4.30 -0.92%
David Jones Limited (DJS) $4.67 -0.64%

If you do have any questions about this or would like to know more about us, please email me at admin@bronsonfs.com.au or give us a call on (07) 5577 8653

Please Note: