Daily FNArena News - Australia

Downer EDI has warned profit will be lower in FY20 than previously assumed and brokers wonder whether this will be the last of the downgrades.

Prospects exist for strong returns from the A-REITs in 2020 but brokers point out the secret is in stock selection.

As BHP Group rides China’s steel production wave, brokers anticipate the first half result in February will provide an opportunity for the new CEO to outline priorities and opportunities.

Super Retail has reported a fire and drought-related impact on its ‘outdoor’ division sales for the first half but several brokers question whether this curtailment of consumer activity has run its course.

Minimal rain and major reductions in summer planting in Australasia have caused Nufarm to, again, make substantial reductions to earnings forecasts for the first half.

While Rio Tinto’s 2020 outlook remains buoyed by commodity prices, copper production guidance is lower than expected. The focus for brokers at the 2019 results in February will be shareholder returns.

Scarborough appears to be progressing but there was no update in the December quarter report regarding a gas agreement for Browse. Hence, delays feature in broker assessments of the outlook for Woodside Petroleum.

Brokers suspect fund managers will endure another lacklustre performance over 2020 with Pendal Group indicating only marginal gains in FUM in the first quarter amid subdued performance fees.

Claims and property losses in the 2019/2020 bushfires so far have now exceeded the Black Saturday event in 2009 and brokers assess the risks to the outlook for Suncorp, and fellow insurers.

Evolution Mining has forewarned of a downgrade to reserves and resources at its Mount Carlton gold mine while highlighting the need to seek alternative water supplies at Cowal.