Consumer Staples

There’s a lot riding on an improvement in consumer spending. Brokers take a look at what it means for the shopping sector.

The Chartist reports a corrective phase is underway for Wesfarmers but the technicals suggest longer term investors may like to set up for some subsequent blue sky.

FNArena’s Treasure Chest reports on money making ideas from stockbrokers and other experts. One broker suggests falling soft drink sales has little to do with any suggestions Australia is becoming more health conscious.

Microequities has exited a profitable position in Patties Foods given the risks of fighting against a duopoly based not on retailing prowess, but on government-sanctioned power.

The outlook for Aust healthcare stocks is attractive, building and retail are mixed while gaming and transport are subdued.

Michael Gable of Fairmont Equities suggests if markets favour, Woolworths should be looking at retesting its highs.

Metcash has flagged an earnings downgrade for FY14, overwhelmed by the heavy petrol discounting conducted by the supermarket giants.

Despite concerns about a foreign exit, CIMB argues Australia’s yield stocks are still offering value, while Macquarie looks for possible dividend surprises at the upcoming results season.

Analysts mostly expect a slow recovery in Australian retail spending but low income and high household cost growth has one broker arguing an even more difficult FY14 for retailers.

Shares in Freedom Foods have rallied 130% over the past year and another broker has picked up coverage with a Buy call.