Consumer Staples

The going is tough for retailers across the board, brokers contend, with the few positives in the outlook suggesting stock picking is the go in most segments.

Market pressures for insurers; ESG research; top risks for banks; stock specifics drive consumer sector; Praemium’s major contract; the value of Pureprofile .

Brokers consider Wesfarmers’ strategy to turn Target around and expand Bunnings in the UK is sound but suspect pressure on earnings will result in lower dividends.

Metcash produced a FY16 result that was largely as expected, with the challenges in the food & grocery segment continuing to divide brokers.

Aldi expands market share; Australian equity becoming expensive; more normal housing market developing; aged care prospects; Nanosonics establishes Trophon; global supply tightness in salmon.

Wesfarmers has outlined large impairments on Target and Curragh coal mine to be taken in the FY16 accounts. Brokers were not surprised but some question whether a dividend reduction is in the offing.

Woolworths has announced additional investment in price for its supermarkets, but can it work?

Outlook for general insurers; Commonwealth budget preview; Aldi’s success; banks and bad debts; GUD Holdings vs GWA Group; aged care sector review.

Shareholder returns; Amcor in Credit Suisse’s top picks; services exports; retail sales outlook, federal budget and healthcare reforms; Bell Potter initiates on Medical Developments International.

Aldi has commenced its drive into South Australia, opening eight supermarkets in Adelaide. Brokers toured independent grocers to ascertain how Metcash is meeting the challenge.