Daily FNArena News - Australia

Several brokers have run the ruler over hygiene product manufacturer, Asaleo Care, and found the recent share price rally makes for caution regarding the outlook in FY17.

Newcrest Mining indicates the future of its Cadia gold mine has not been compromised by the recent earthquake. Brokers welcome the update, although lingering concerns exist.

The trend of disappointing flows continued with AMP’s March quarter update, as the flagship wealth management business was affected by high outflows from default superannuation transitions.

CSR has acknowledged that building approvals for residential developments are well past their peak although building product earnings are expected to be supported in FY18. Brokers trim the outlook further out.

Bad weather during March and April has caused Ardent Leisure to downgrade forecasts for theme parks, signalling a loss in the division for FY17.

Incitec Pivot produced an upbeat outlook after its first half result but brokers are not that convinced. Spot pricing for many of the company’s fertiliser exposures is rapidly deteriorating.

Australia’s competition regulator, the ACCC, does not intend to mandate roaming on Telstra’s regional mobile network, which brokers conclude is unequivocally positive for its mobile business.

Macquarie Group surprised with a strong cash profit in FY17 and a dividend which beat expectations. Going forward, a transformational acquisition could be required for the next phase of growth.

Fleet and equipment leasing business EclipX has made a surprise acquisition of Grays eCommerce and brokers are warming to the synergy potential.

The underperformance of one of credit provider FlexiGroup’s key businesses, Certegy, has left brokers unsure about the near-term outlook.