Daily FNArena News - Australia

Elevated inventory persisted over the March quarter amid falling sales for Blackmores, which has recognised the need to reposition its business to better cater for the Chinese market.

The first quarter can be soft for seasonal reasons and mineral sands producer Iluka Resources has assured the market that sales remain in line with historical averages.

Despite weak production outcomes in the March quarter, Carrapateena is expected to provide OZ Minerals with a positive catalyst when production starts later in the year.

Bank of Queensland sustained no growth in its home loan book in the first half and its retail bank continues to struggle. Brokers suggest the absence of a permanent CEO has hindered development of a definitive strategy.

FNArena’s Monitor keeps track of corporate earnings result releases, including broker views, ratings and target price changes and beat/miss assessments.

Sims Metal has highlighted the increased value of the material in waste streams, flagging a significant diversification from its core scrap metal business.

A combination of AP Eagers and Automotive Holdings will provide a competitive advantage, brokers agree, against smaller fragmented competition. Yet, AP Eagers is offering a minimal premium.

Several brokers suspect they are being conservative regarding the potential of the berry plantations Costa Group is developing in China.

Separating out GrainCorp’s malt business has its appeal, brokers acknowledge, but the devil is likely to be in the detail for the remaining integrated grains & edible oils.

The pressure on bank margins is unlikely to abate soon and brokers find it difficult to be overly positive about the sector.