Tag Archives: Weekly Reports

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Next Week At A Glance

For a more comprehensive preview of next week's events, please refer to "The Monday Report", published each Monday morning. For all economic data release dates, ex-div dates and times and other relevant information, please refer to the FNArena Calendar.


By Greg Peel

Back in The World Before Trump, the market was pricing in around an 80% chance of a Fed rate hike next month, and no further rate hike until, probably, December 2018. A hike would no doubt be off the table however, were Trump to win, given the stock market would crash.

The stock market hasn’t crashed – the bond market has. In the two days post election the US ten-year bond yield has already risen by the 25 basis points the Fed would hike, and that’s from the starting point of 80% already being priced in. Although vague at this point, Trump policies are likely to pick up the stimulus baton on the fiscal front to take the burden off monetary policy.

The Fed could justify a 50bps hike next month. Or at least a rethink its “gradual” approach. It’s a whole new world, this World of Trump.

Do US data now matter? Next week sees numbers for retail sales, inventories, industrial production, inflation, housing sentiment, housing starts and the Empire State and Philly Fed activity indices.

Does China now matter as much? Next week sees a dump of October retail sales, industrial production and fixed asset investment numbers.

Japan and the eurozone both release September quarter GDP results.

In Australia we’ll see the minutes of the November RBA meeting. They’re old hat. We’ll also see the September quarter wage price index, beginning the countdown towards our own GDP result.

And Trump or no Trump, the AGM season will roll on. Indeed, next week is one of the busiest. We’ll also see earnings results from Elders ((ELD)), Oxforex ((OFX)), Graincorp ((GNC)), James Hardie ((JHX)) and AusNet ((AST)).


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Weekly Broker Wrap: Oz Equities, Infrastructure, Hospitals And Electricity

Equities & Trump ascendancy; returns in infrastructure; coal-fired power stations; variations in hospital revenue growth; metro TV audience share.

-Near-term outlook uncertain but Trump win suggests shift to fiscal vs monetary policy
-Further downside for infrastructure sector if bond yields continue to rise
-Base load capacity closures could push wholesale electricity prices up sharply by 2025
-Ramsay Health Care seen bucking the general decline in growth in hospital procedures
 

By Eva Brocklehurst

Trump And Oz Equities

A lack of specifics in the policies of US president-elect, Donald Trump, signal the near-term outlook for financial markets is uncertain. Credit Suisse analysts observe previous periods of uncertainty have resulted in “risk off” markets, with 5-10% declines in the S&P 500 in the near term.

The policies that are known could support higher bond yields in the medium term, if passed by Congress. US companies will be encouraged to invest more in the US and save less. In the near term, Credit Suisse suspects the environment is likely to be relatively positive for Australian cash generating companies. This includes BHP Billiton ((BHP)), Boral ((BLD)) and Vocus Communication ((VOC)).

Credit Suisse believes investors should position for a more inflationary environment and be cautious about highly valued, highly leveraged bond proxies. Higher trade barriers should be positive for those companies with US operations.

Deutsche Bank also expects greater uncertainty in the US, given the lack of detail around policy positions. Equities are expected to fall further and the broker's European team expects 5-10% downside from current levels. Australia is already 5% off its recent peak and the broker envisages further downside contained at 5%.

The rising risk aversion should boost the US dollar. A strong US dollar tends to weigh on commodity prices which could affect resource stocks but the broker expects gold prices to be well supported because of the uncertainty.

Deutsche Bank suspects a Trump presidency could mean a shift in responsibility to fiscal rather than monetary policy, and higher interest rates that result would help financials. Fiscal stimulus targeting construction would support commodities demand but a retreat from global trade relationships could hurt the Asian region and Australian resource stocks by extension.

The broker believes gold and yield exposure are the best places at present. Amongst gold stocks the analysts have Buy ratings on Evolution Mining ((EVN)), Alacer Gold ((AQG)) and Dacian Gold ((DCN)). Amongst yield stocks the analysts have Buy ratings on Sydney Airport ((SYD)), Macquarie Atlas ((MQA)) and APA Group ((APA)).

Infrastructure

Deutsche Bank has gone back to 2008 and re-examined what returns the infrastructure sector has offered. The required return spread to bond rate has reduced over this period of time but appears to have expanded in the last three months back to the average since 2010, while bond rates remain around 100-150 basis points lower than average.

If bond yields continue to rise, the broker envisages further downside in the infrastructure sector. Deutsche Bank adjusts its required distribution yield across the sector to 5% from 4%, which in turn means price targets are adjusted lower. Given the movement in bonds, the broker adjusts price targets for Sydney Airport, Macquarie Atlas and Transurban ((TCL)) down by 6-11%.

The broker notes that Australian internal rates of return (IRR) for infrastructure stocks are still low relative to other returns from the sector in Asia currently on offer, despite a similar cost of equity being applied in valuations. The average cost of equity being applied across the sector is 9.2% and the average IRR on offer is 11.7%.

Electricity

Ord Minnett takes a broad look at the potential impact of base-load capacity closures on wholesale electricity prices. For the purposes of the analysis the broker assumes Hazelwood closes in 2017, Yallourn in 2019, Liddell in 2022 and Loy Yang B in 2024. These withdrawals will remove around 39TWh of annual generating capacity.

Based on the broker's modelling, the total impact of these closures would mean wholesale prices in 2025 would be 40% higher in NSW and Victoria, 30% higher in Tasmania and 10-20% higher in Queensland and South Australia. Price volatility would also increase materially, the broker suspects, which would likely raise hedging costs to the detriment of pure retailers.

The main beneficiaries of the plant closures are likely to be the vertically integrated utilities, and particularly AGL Energy ((AGL)). The broker estimates that wholesale prices in NSW and Victoria would consistently exceed $100/MWh if all four of these power plants are shut down. More gas-fired generation would be used but Ord Minnett has not included the potential impact on gas prices in its analysis.

Private Hospitals

Differences in exposure to surgical specialties and certain procedures could be contributing to apparent variations in hospital revenue growth for listed operators such as Ramsay Health Care ((RHC)) and Healthscope ((HSO)).

To determine if this could be the reason for the disparity in management commentary regarding recent performance, Credit Suisse reviews surgical volume growth trends as captured in the Medicare Benefits Schedule data.

In the broker's view Ramsay's apparent ability to buck the general decline in industry growth is because of its relatively lower exposure to those procedures which have been most affected.

On a proportional basis, the broker suggests it is feasible that Ramsay has a large number of tertiary type, co-located facilities conducting a relatively higher percentage of more complex cases. For Healthscope the opposite would then be true. Credit Suisse retains Neutral ratings on both stocks.

Oz TV

Metro TV audiences for the three commercial stations declined by an aggregate 3% in October. Declines continue to be more pronounced in the younger demographics. Nine Entertainment ((NEC)) took the top spot in October with a 37.9% free-to-air share. Seven West Media ((SWM)) experienced a dip in its share to 37.2%. Ten Network ((TEN)) retained a relatively static share of 24.9%.

While acknowledging it is early days - there is always a lag between rating share and revenue share - UBS suspects the performance of Seven's new programming, launched after the Olympics, is slightly below expectations. On the other hand, if Nine Entertainment can sustain current share momentum then this may partly offset weaker market growth overall.


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Australian Corporate Bond Price Tables

PDF file attached.

Corporate bonds offer an alternative to equity investment in providing a fixed “coupon”, or interest payment, unlike equities which pay (or not) non-fixed dividend payments, and a maturity date, unlike equities which are open-ended.

Listed corporate bonds can be traded just as listed shares can be traded. Bonds bought at issue and held to maturity do not offer capital appreciation as an equity can, but assuming no default do not offer downside capital risk either. Pricing is based on market perception of default risk, or “credit risk”, throughout the life of the bond.

Bonds do offer capital risk/reward if traded on the secondary market within the bounds of issue and maturity. Coupon rates are fixed but bond prices fluctuate on perceived changes in credit risk and on changes in prevailing market interest rates.

Note that the attached tables offer three “yield” figures for each issue, being “coupon”, “yield” and “running yield”.

If a bond is purchased at $100 face value and a 5% coupon, and face value is returned at maturity, the running yield is 5% and the yield, or “yield to maturity” is 5%.

If a bond is purchased in the secondary market at greater than $100, the running yield, which is the per annum yield for each year the bond is held, is less than 5% because the coupon is paid on face value. The yield to maturity is also less than the coupon as more than $100 is paid to receive $100 back at maturity.

If a bond is purchased in the secondary market at less than $100, the running yield, which is the per annum yield for each year the bond is held, is more than 5% because the coupon is paid on face value. The yield to maturity is also more than the coupon as less than $100 is paid to receive $100 back at maturity.

Note that if a bond is trading on the secondary market at a price greater than face value the implication is the market believes the bond is less risky than at issue, and if at a lesser price it has become more risky. Bonds trading on yields substantially higher than their coupons thus do not offer a bargain per se, just a higher risk/reward investment. In all cases, bond supply and demand balances will also impact on secondary pricing.

Note also that while most coupons are fixed, the attached table also provides prices for capital indexed bonds (CIB) and indexed annuity bonds (IAB).

This service is provided for informative purposes only. It is not, and should not be treated as, a solicitation or recommendation to buy corporate bonds. Investors should always consult their financial adviser before acting on any information gleaned from this service. FNArena does not guarantee the accuracy of information provided. Note that while FNArena publishes this table weekly, prices are fluid and potentially changing throughout each trading day. Hence prices tabled may not reflect actual market prices at the time of reading.

FNArena disclaimer

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The Short Report

Guide:

The Short Report draws upon data provided by the Australian Securities & Investment Commission (ASIC) to highlight significant weekly moves in short positions registered on stocks listed on the Australian Securities Exchange (ASX). Short positions in exchange-traded funds (ETF) and non-ordinary shares are not included. Short positions below 5% are not included in the table below but may be noted in the accompanying text if deemed significant.

Please take note of the Important Information provided at the end of this report. Percentage amounts in this report refer to percentage of ordinary shares on issue.

Stock codes highlighted in green have seen their short positions reduce in the week by an amount sufficient to move them into a lower percentage bracket. Stocks highlighted in red have seen their short positions increase in the week by an amount sufficient to move them into a higher percentage bracket. Moves in excess of one percentage point or more are discussed in the Movers & Shakers report below.


Summary:

Week ending November 3, 2016

Last week saw the ASX200 continue on its downward trajectory, in line with global markets but to a more pronounced extent, as Donald Trump began a comeback in the polls. The rest, as they say, is history.

Despite the fall in the index over the week, there were more short position increases among stocks 5% or more shorted than there were decreases, as the table below indicates. There were particularly a lot of stocks shifting up into the 6-7% bracket from the 5-6% bracket.

But there were no movements in short position, up or down, of more than one percentage point. There are therefore no Movers & Shakers this week.

We will note a couple of highlights, however.

After entering the 5% plus table at the bottom the week before, troubled hospital operator Healthscope ((HSO)) was among those moving into the 6-7% bracket last week, as was building materials company CSR ((CSR)), despite a better than expected earnings result.

Having slipped back down from the top end of the table over past weeks, G8 Education ((GEM)) has more recently begun to climb again, and last week moved into the 9-10% bracket.

How long will strength in coal and iron ore prices last? Rio Tinto ((RIO)) has cemented its place as the most shorted Top 20 stock in the market, moving up to 7.3% from 6.8% last week, ahead of Top 20 peer Woolworths on 6.4%.

And as to how the wild crash-and-bounce we have just experienced courtesy of The Donald impacts on short positions we will have to wait and see. There will no doubt have been a few heads spinning.


Weekly short positions as a percentage of market cap:

10%+

MYR   17.6
WOR   14.3
WSA   14.0
BAL    11.8
NEC    11.0
MTS    11.0
ACX   10.9
MND   10.3

No changes

9.0-9.9%

AWC, TFC, GEM
 
In: GEM                                 

8.0-8.9%

SYR, JHC, MTR

In: JHC, MTR             Out: GEM, ORI                     

7.0-7.9%

CVO, VOC, MYO, FLT, EHE, ORI, IGO, IFL, DOW, ORE, RIO, BEN

In: ORI, RIO              Out: BKL, SGM

6.0-6.9%

IVC, GOR, BKL, SGM, SGH, AWE, PRY, WOW, NWS, GTY, KAR, HSO, PDN, OSH, CSR

In: BKL, SGM, GTY, KAR, HSO, PDN, OSH, CSR                      Out: CAB

5.0-5.9%

MSB, CAB, SEK, ILU, SPO, DMP

In: CAB, SPO, DMP              Out: GTY, OSH, PDN, KAR, HSO, CSR, IPH, BOQ


Movers and Shakers

See above.
 

ASX20 Short Positions (%)


To see the full Short Report, please go to this link

IMPORTANT INFORMATION ABOUT THIS REPORT

The above information is sourced from daily reports published by the Australian Investment & Securities Commission (ASIC) and is provided by FNArena unqualified as a service to subscribers. FNArena would like to make it very clear that immediate assumptions cannot be drawn from the numbers alone.

It is wrong to assume that short percentages published by ASIC simply imply negative market positions held by fund managers or others looking to profit from a fall in respective share prices. While all or part of certain short percentages may indeed imply such, there are also a myriad of other reasons why a short position might be held which does not render that position “naked” given offsetting positions held elsewhere. Whatever balance of percentages truly is a “short” position would suggest there are negative views on a stock held by some in the market and also would suggest that were the news flow on that stock to turn suddenly positive, “short covering” may spark a short, sharp rally in that share price. However short positions held as an offset against another position may prove merely benign.

Often large short positions can be attributable to a listed hybrid security on the same stock where traders look to “strip out” the option value of the hybrid with offsetting listed option and stock positions. Short positions may form part of a short stock portfolio offsetting a long share price index (SPI) futures portfolio – a popular trade which seeks to exploit windows of opportunity when the SPI price trades at an overextended discount to fair value. Short positions may be held as a hedge by a broking house providing dividend reinvestment plan (DRP) underwriting services or other similar services. Short positions will occasionally need to be adopted by market makers in listed equity exchange traded fund products (EFT). All of the above are just some of the reasons why a short position may be held in a stock but can be considered benign in share price direction terms due to offsets.

Market makers in stock and stock index options will also hedge their portfolios using short positions where necessary. These delta hedges often form the other side of a client's long stock-long put option protection trade, or perhaps long stock-short call option (“buy-write”) position. In a clear example of how published short percentages can be misleading, an options market maker may hold a short position below the implied delta hedge level and that actually implies a “long” position in that stock.

Another popular trading strategy is that of “pairs trading” in which one stock is held short against a long position in another stock. Such positions look to exploit perceived imbalances in the valuations of two stocks and imply a “net neutral” market position.

Aside from all the above reasons as to why it would be a potential misconception to draw simply conclusions on short percentages, there are even wider issues to consider. ASIC itself will admit that short position data is not an exact science given the onus on market participants to declare to their broker when positions truly are “short”. Without any suggestion of deceit, there are always participants who are ignorant of the regulations. Discrepancies can also arise when short positions are held by a large investment banking operation offering multiple stock market services as well as proprietary trading activities. Such activity can introduce the possibility of either non-counting or double-counting when custodians are involved and beneficial ownership issues become unclear.

Finally, a simple fact is that the Australian Securities Exchange also keeps its own register of short positions. The figures provided by ASIC and by the ASX at any point do not necessarily correlate.

FNArena has offered this qualified explanation of the vagaries of short stock positions as a warning to subscribers not to jump to any conclusions or to make investment decisions based solely on these unqualified numbers. FNArena strongly suggests investors seek advice from their stock broker or financial adviser before acting upon any of the information provided herein.

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Share Buybacks – Who’s Doing It?

International research suggests shares in companies that buy in their own equities are more likely to respond positively through share price appreciation. Investors should note, however, buying back own stock is not a guarantee for significant share price gains ahead.

For local research about investor benefits from capital management, including companies buying in their own shares, FNArena subscribers can read "Buy Capital Management"

Below is an incomplete overview of companies buying in their own shares this year. We very much appreciate all feedback, contributions and suggestions at info@fnarena.com

See attached excel file for more details (paying subscribers only)

8IH 8I Holdings 21/09/2016
ABW Aurora Absolute Return 24/08/2016
ACQ Acorn Capital Inv Fund 10/10/2016
AFA ASF Group 26/04/2016
AFR African Energy Resources 23/11/2015
AGL AGL Energy 13/10/2016
AHY Asaleo Care 01/10/2015
AIB Aurora Global Income 14/12/2015
AIV ActivEX Ltd 01/11/2016
ALR Aberdeen Leaders Ltd 27/02/2015
APW AIMS Property Securities Fund 07/09/2016
AQF Australian Governance Masters 23/11/2015
ARA Ariadne Australia 21/08/2014
ARG Argo Investments 01/01/2016
AUF Asian Masters Fund 23/11/2016
AUF Asian Masters Fund 23/11/2015
AUI Australian United Investments 14/05/2015
AUP Aurora Property Buy-Write Trust 14/12/2015
BWF Blackwall Property Fund 15/03/2016
BWR Blackwall Property Trust 07/07/715
CAM Clime Capital. 21/12/2015
CAMPA Clime Capital Preference 15/08/2016
CGO CPT Global 27/08/2015
CHN Chalice Gold Mines 30/06/2016
CIM Cimic Group 29/12/2015
CIN Carlton Investments 29/11/2015
CIW Clime Investment Management 16/12/2015
CLT Cellnet Group 09/09/2015
CMC China Magnesium Corp 28/10/2014
CNI Centuria Capital 24/12/2015
CSL CSL Ltd 27/10/2016
CSR CSR Ltd 21/03/2016
CSV CSG Ltd 12/03/2016
CVC CVC Ltd 07/12/2015
CVW ClearView Wealth 19/12/2013
CYG Coventry Group 23/11/2015
DUI Diversified United Investments 01/06/2016
EAI Ellerston Asia Investments 27/09/2016
EMF Emerging Markets Masters Fund 21/12/2015
EMF Emerging Markets Masters Fund 21/12/2016
EZL Euroz Ltd 14/01/2016
FID Fiducian Group 03/03/2015
FRI Finbar Group 08/12/2014
GOW Gowing Bros 20/06/2012
HHY HHY Fund 24/08/2016
HOT HotCopper Holdings 02/11/2016
ICN Icon Energy 26/02/2015
IPE IPE Ltd 12/11/2016
ISU iSelect 30/03/2016
ITD ITL Ltd 11/12/2015
JBH JB Hi-Fi 12/09/2016
KAT Katana Capital 30/12/2014
KAR Karoon Gas Aust 17/09/2015
KBC Keybridge Capital 07/12/2015
KKT Konekt 18/11/2015
LGD Legend Corp 24/12/2015
LLC Lend Lease Corp 28/08/2015
MEL Metgasco 04/02/2016
MFF Magellan Flagship Fund 13/08/2015
MGP Managed Accounts Holdings 14/08/2015
MHM MHM Metals 17/02/16
MIN Mineral Resources 04/12/2015
NEC Nine Entertainment 25/02/2016
NVT Navitas 16/02/2016
OCL Objective Corp 26/02/2016
OPG OPUS Group 09/12/2016
ORL Oroton Group 26/04/2016
OZG Ozgrowth Ltd 30/12/2015
OZL OZ Minerals 14/03/2016
PME Pro Medicus 01/04/2016
PTM Platinum Asset Management 04/10/2016
QAN Qantas 08/09/2016
RCR RCR Tomlinson 21/12/2015
RND Rand Mining 12/12/2015
RUL RungePincockMinarco 07/12/2015
SGM Sims Metal Management 07/12/2015
SIP Sigma Pharmaceuticals 13/10/2014
SMX SMS Management & Tech 15/06/2015
SVW Seven Group Holdings 12/03/2016
SVW Seven Group Holdings 17/08/2016
SWK Swick Mining Services 14/12/2015
TBR Tribune Resources 28/09/2015
TGG Templeton Global Growth Fund 26/02/2016
TLS Telstra Announced 11/8/16
TOF 360 Capital Office Fund 02/05/2016
TOT 360 Capital Total Return 28/03/2016
TSM Thinksmart 06/09/2016
VSC Vita Life Sciences 13/05/2016
WAT Waterco 07/04/2016
WIC Westoz Investment Co 30/12/2015
WMK Watermark Market Neutral Fund 29/09/2016
XPD XPD Soccer Gear Group 20/09/2016
YBR Yellow Brick Road Holdings 20/11/2015

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Uranium Week: Catching The Knife

By Greg Peel

The newly elected governor of Kagoshima Prefecture in Japan will not seek to block the restart of the Sendai unit 1 reactor once seasonal maintenance is completed. There ends the good news for the uranium industry last week.

In the US, the 43 year-old Fort Calhoun reactor in Nebraska will be shut down this month due to commercial non-viability, despite being licenced until 2033. And despite uranium prices being at twelve-year lows.

Three utilities entered the uranium spot market last week, industry consultant TradeTech reports. One decided to purchase, one postponed, and the other is still thinking about it. That about sums up the state of the market at present – the buyers are in no rush.

On the other hand, the sellers are becoming more desperate. The three utilities in question were encouraged into the market by another drop in TradeTech’s weekly uranium spot price to US$18.75/lb, where it stood at the end of October and the end of the week. That’s US$1.00 down for the week and US$3.50, or 15.7%, down from end-September.

Five transactions totalling 700,000lbs U3O8 equivalent were reported during the week. Over the month, buying interest was evidenced by a total of 6mlbs changing hands, but the buyers remain in the box seat.

Five transactions were reported in term markets over October, but only for the meagre sum of 2.1mlbs. TradeTech’s term price indicators have been lowered to US$20.50/lb (mid) from US$23.70/lb, and US$35.00 (long) from US$37.00/lb.

Over the course of 2016, traders and intermediaries, rather than utilities, have accounted for 67% of spot market buying interest, and 75% in the September quarter. Plunging spot prices are providing producers with heartache and utilities with a luxury but specifically they are piquing the interest of speculators. Just how much further can prices fall before supply is cut through further curtailments, shut downs and corporate failures?
 

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Australian Listed Real Estate Tables

PDF file attached.

Investors looking to diversify away from straight equity can invest in property as an alternative via direct investment, or by investing in units of listed or unlisted real estate investment trusts (REIT) or the shares of property developers.

Typically a REIT will purchase a number of similar properties, maintain those properties and collect rent from tenants, and pay a distribution (dividend) to the unit holder net of maintenance costs and management fees. REITs are primarily attractive to investors for their dividend yield but also offer capital upside on property value appreciation. The bulk of listed REITs fall into three property categories: office, being office blocks usually in a CBD; retail, being shops and shopping centres; and industrial, being warehouses, logistics centres and so forth. Other variations exist.

Property developers typically purchase land, build office, retail, industrial or residential complexes, and sell those properties. Developers offer a higher risk/reward investment than REITs given the lag time between construction and sale, and the capital committed to a project. Dividend yields are typically lower but capital up/downside typically greater.

The tables in the attached PDF list Australian REITs and developers and and calculations for dividend yield and valuation, including share price to earnings, price to net asset value (market value of property) and price to book value (property valuation on the company's/trust's books) for the purpose of investor assessment.

The overview attached is provided by Vested Equities Pty Ltd (AFSL 478987). www.vested.com.au

This service is provided for informative purposes only. It is not, and should not be treated as, a solicitation or recommendation to buy corporate bonds. Investors should always consult their financial adviser before acting on any information gleaned from this service. FNArena does not guarantee the accuracy of information provided. Note that while FNArena publishes this table weekly, prices are fluid and potentially changing throughout each trading day. Hence prices tabled may not reflect actual market prices at the time of reading.

FNArena disclaimer

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Weekly Recommendation, Target Price, Earnings Forecast Changes

By Rudi Filapek-Vandyck, Editor FNArena

Guide:

The FNArena database tabulates the views of eight major Australian and international stock brokers: Citi, Credit Suisse, Deutsche Bank, Macquarie, Morgan Stanley, Morgans, Ord Minnett and UBS.

For the purpose of broker rating correlation, Outperform and Overweight ratings are grouped as Buy, Neutral is grouped with Hold and Underperform and Underweight are grouped as Sell to provide a Buy/Hold/Sell (B/H/S) ratio.

Ratings, consensus target price and forecast earnings tables are published at the bottom of this report.

Summary

Period: Monday October 31 to Friday November 4, 2016
Total Upgrades: 13
Total Downgrades: 9
Net Ratings Breakdown: Buy 41.90%; Hold 42.56%; Sell 15.55%

Persistent weakness for the local share market is translating into stockbroking analysts issuing more recommendation upgrades than downgrades for ASX-listed entities. For the week ending Friday, 4th November 2016, FNArena registered 13 upgrades versus nine downgrades. The gap between total Buy ratings and Neutral recommendations for the eight brokers we monitor daily has now narrowed to less than one percentage point (41.90% versus 42.56%).

In most cases any upgrades follow share price weakness with the analysts indicating the gap between share price and their valuation doesn't seem justified. Stocks receiving downgrades have either rallied hard or the companies issued a disappointing market announcement. Stocks receiving downgrades to Sell include Fortescue Metals, Silver Lake Resources, Virgin Australia and Woolworths. Macquarie Group was the sole recipient of two downgrades during the week, both to Neutral.

Whitehaven Coal stole the show with a double digit increase to its consensus price target (+10%), beating Beach Energy (+3.50%) and Woolworths (+2.20%), but otherwise upward changes to price targets and valuations remained rather benign. There was more happening on the negative side, which should be of some concern at least for investors with a medium term outlook.

AMP, having issued yet another disappointing market update, saw its targets being cut by -10.2%, followed by REA Group (weak industry data and Fairfax profit warning) with a fall of -4% and Virgin Australia with a cut of -3.3%. Overall, average reductions for price targets are larger than positive adjustments recorded.

The same diversion in trend is visible in the tables for positive and negative adjustments to earnings forecasts, albeit much more pronounced. Whereas EclipX Group enjoyed an increase of +16%, followed by ANZ Bank (+11.4%), Whitehaven Coal (+8.6%) and Mineral Resources (+4.7%), the negative side has AWE on top with a reduction of no less than -4000%. Next up are Orocobre (-76%), Virrgin Australia (-60%), AMP (-43%)  and Blackmores (-32%). Even the number ten for negative revisions, Qantas, still suffered a blow of -6.39%.

Rather ominously, and as highlighted in prior editions of this weekly update, the underlying negative trend for earnings estimates that is becoming apparent for corporate Australia ex-commodities ever since the AGM season started means not all weakness in the share market is due to a buyer's strike in the lead-in to the US Presidential election.

It also means not all stocks falling will be a great buy once risk appetite returns.

Upgrade

AWE LIMITED ((AWE)) Upgrade to Neutral from Underperform by Macquarie .B/H/S: 3/3/1

AWE's Sep Q production was impacted by divestments but outside the loss of Cliff Head, production increased thanks to Tui, Macquarie notes. AWE continues to eye off east coast gas for ongoing growth.

The impact of not going ahead with Waitsia had Macquarie downgrading to Underperform post result on a lack of earnings growth and balance sheet concerns.

While the balance sheet is still troublesome and near-term earnings growth questionable, the broker believes there is sufficient cash flow from operations to justify an upgrade back to Neutral. Target unchanged at 60c.

BT INVESTMENT MANAGEMENT LIMITED ((BTT)) Upgrade to Outperform from Neutral by Macquarie .B/H/S: 2/3/1

BT Investment's result came in ahead of Macquarie, and the broker's fund manager criteria of flows, capacity and performance were all met. Fund inflows are now recovering after the initial Brexit drop-off. 

The strong performance and post-Brexit recovery sees Macquarie lift earnings forecasts by 18% and 32% in FY17-18. Target rises to $10.76 from $8.74. Upgrade to Outperform.

CSR LIMITED ((CSR)) Upgrade to Hold from Lighten by Ord Minnett .B/H/S: 2/2/2

Ord Minnett notes the building products division benefited from its leverage to the resilient east coast residential cycle in the first half. The broker now expects CSR to maintain its current level of earnings out to FY18.

Building products demand is expected to remain elevated next year. The broker notes management is looking at initiatives to soften the blow when the cycle eventually turns. These initiatives include opportunities to save on costs and a continuation of the search for new cladding products to distribute to the domestic network.

Target is raised to $3.75 from $3.50 and Ord Minnett envisages limited downside to the target, raising its rating to Hold from Lighten.

See also CSR downgrade.

CROWN RESORTS LIMITED ((CWN)) Upgrade to Buy from Neutral by UBS .B/H/S: 5/1/0

The shares have declined around 18% since the company disclosed that 18 staff have been detained in China. UBS suspects this event could lead to lower VIP volumes.

Despite the negative sentiment, the broker believes Crown's shares are now factoring in the known risks. In addition, the outlook in Macau has stabilised in recent months.

Rating is upgraded to Buy from Neutral. Target slips to $12.30 from $13.10.

JAMES HARDIE INDUSTRIES N.V. ((JHX)) Upgrade to Hold from Lighten by Ord Minnett .B/H/S: 4/3/0

The company's stock price has declined 11% since the first quarter result, underperforming the broader market benchmark by around 5.9 percentage points, Ord Minnett observes.

The broker attributes the decline in part to headlines associated with the moderation of housing starts growth in the US in recent months. As the share price is now trading in line with the target, the broker upgrades to Hold from Lighten. $18.60 target retained.

NINE ENTERTAINMENT CO. HOLDINGS LIMITED ((NEC)) Upgrade to Outperform from Neutral by Credit Suisse .B/H/S: 2/2/2

Credit Suisse believes it's time to properly evaluate the Stan subscription video-on-demand service.The broker believes Stan is on track for substantial profits in FY19 and investors will increasingly start to attribute value to the venture.

Stan is a strategic asset that the broker believes will attract multiple buyers at a higher valuation if it was ever for sale. Credit Suisse upgrades to Outperform from Neutral, believing there is minimal value for Stan factored into the share price. Target rises to $1.15 from $1.05.

NORTHERN STAR RESOURCES LTD ((NST)) Upgrade to Buy from Neutral by Citi .B/H/S: 2/1/2

Citi analysts note performance in the September quarter was weaker than the previous quarter, but the company should remain in a position to meet production guidance for the full year.

Post share price weakness, they have upgraded to Buy from Neutral. Also, the analysts explain, their positive view is based upon expectation of production growth to at least 600kozpa in FY18. Target drops by 20c to $4.70 on reduced forecasts.

REA GROUP LIMITED ((REA)) Upgrade to Outperform from Neutral by Macquarie .B/H/S: 4/1/2

The Fairfax AGM warned of much softer listing volumes for Domain across Sydney and Melbourne, which is clearly a negative, Macquarie suggests. Yet Domain was still able to grow revenues, which highlights growth in yield via mix-shift and price. Fairfax pointed to changes in super caps and the long election campaign as having an impact.

But management also noted a very strong last Spring, which brings into question whether any rebound will be seen. Cyclical pressures will drive slower growth rates for REA, Macquarie believes, but the core asset should still provide strong medium term growth. On the recent sell-off, the broker upgrades REA to Outperform.

Target falls to $56 from $58.

RELIANCE WORLDWIDE CORPORATION LIMITED ((RWC)) Upgrade to Accumulate from Hold by Ord Minnett .B/H/S: 2/2/0

The share price has fallen 10.8% since the company delivered its FY16 result. Reliance is now trading with a 9.4% gap to the broker's target, which is considered too wide to ignore.

Hence, Ord Minnett raises its rating to Accumulate from Hold, while $3.15 price target retained.

SCENTRE GROUP ((SCG)) Upgrade to Overweight from Underweight by Morgan Stanley .B/H/S: 2/2/2

The pullback in Scentre's share price driven by the global rise in bond yields has taken valuation to 12% below Morgan Stanley's target price. For the broker, this offers an attractive entry point.

Scentre offers the highest quality retail portfolio in the country, defensive earnings offering 4-5% growth, and a 5% yield, Morgan Stanley notes. Upgrade to Overweight. Target unchanged at $4.75. Industry view: Attractive.

SIMS METAL MANAGEMENT LIMITED ((SGM)) Upgrade to Accumulate from Hold by Ord Minnett .B/H/S: 3/3/1

The outlook for the scrap price is improving and Ord Minnett observes solid premiums in export markets which are likely to improve EBIT per tonne. The broker believes the company's cost-cutting initiatives are under appreciated.

The rating is upgraded to Accumulate from Hold and the target is raised to $10.90 from $9.90. The stock is now a key sector pick for the broker.

WESFARMERS LIMITED ((WES)) Upgrade to Accumulate from Hold by Ord Minnett .B/H/S: 2/4/2

Ord Minnett has upgraded to Accumulate from Hold following recent falls in the share price. The broker notes the Coles approach to competition is aggressive, yet remains rational.

While Target's turnaround remains difficult the broker envisages further strong growth in Kmart and this makes for an overall neutral view on discount department stores.

Meanwhile, earnings in resources are expected to increase significantly. Target is $45.

WHITEHAVEN COAL LIMITED ((WHC)) Upgrade to Outperform from Underperform by Credit Suisse .B/H/S: 2/3/3

China is targeting a new range of thermal coal prices. State media has reported the negotiated medium to long-term contract price target is RMB535-540/tonne.This is around 20% lower than current prices, Credit Suisse observes, but well above recent price expectations.

RMB 540/tonne corresponds to a Newcastle export price of around US$75/tonne. The broker acknowledges it is doing an about-face, upgrading to Outperform from  Underperform, as the risks to Whitehaven's valuation from materially higher near-term prices are now too great. Target is lifted to $3.60 from $2.80.

Credit Suisse still believes in the longer term that China's thermal coal imports will decline.

Downgrade

AMP LIMITED ((AMP)) Downgrade to Neutral from Outperform by Credit Suisse .B/H/S: 5/3/0

Credit Suisse has downgraded AMP to Neutral from Outperform post yet another disappointing market update.The Australian Wealth Protection (WP) business continues to present headaches and the analysts are not convinced management is doing enough to stem the bad news flow.

On ongoing risk for more disappointment, Credit Suisse lowers its target to $5.00 from $5.75. FY16 NPAT estimate goes down by 52% (resulting in a negative EPS), outer years fall by 7-10%.

CSR LIMITED ((CSR)) Downgrade to Neutral from Outperform by Credit Suisse .B/H/S: 2/2/2

CSR has acquired Boral's ((BLD)) 40% stake in the east coast brick joint venture. Strategically, Credit Suisse observes this is consistent with a commitment to the building products business and reduces the relative importance of the aluminium business.

The broker notes housing is approaching its peak of the cycle and Tomago electricity costs are about to step higher. In conjunction with the emerging competitive threat in plasterboard, the broker is cautious on the medium-term outlook.

Rating is downgraded to Neutral from Outperform and the target lowered to $3.60 from $3.85.

See also CSR upgrade.

FORTESCUE METALS GROUP LTD ((FMG)) Downgrade to Underperform from Neutral by Credit Suisse .B/H/S: 2/2/3

Credit Suisse downgrades the stock to Underperform from Neutral on the rally in the share price. Target is steady at $5.

Earnings estimates are unchanged at this stage. The broker envisages the risk to sales guidance for 165-170mt appears to be to the upside, unless the upcoming cyclone season proves less benign than last year.

MACQUARIE GROUP LIMITED ((MQG)) Downgrade to Hold from Buy by Deutsche Bank and Downgrade to Neutral from Outperform by Credit Suisse .B/H/S: 1/5/1

First half profit was slightly ahead of Deutsche Bank's forecasts while full year guidance is maintained. The broker believes while the bank continues to execute well and has levers to drive growth these factors are priced in.

The broker is also concerned about the prospect of rising global rates and removal of stimulus by central banks, suggesting more turbulent markets could on the cards.

Rating is downgraded to Hold from Buy. Target slips to $82.70 from $84.00.

Credit Suisse has implemented minor negative adjustments post Macquarie's interim report. The price target has been left intact at $85. Rating downgraded to Neutral from Outperform.

Macquarie did meet guidance and market expectations but the analysts find the composition of the result rather weak with net revenues buoyed by principal investment gains and lower loan impairment offsets, and there was a tax gain included.

The analysts suggest Macquarie is approaching "peak earnings".

SPEEDCAST INTERNATIONAL LIMITED ((SDA)) Downgrade to Neutral from Buy by UBS .B/H/S: 2/2/0

The company will acquire Harris Caprock for US$425m. The acquisition will be funded by an equity raising and debt.

UBS observes, at face value, the price is attractive but Harris Caprock revenues have been declining, given 66% sit within a challenged energy vertical.

Nevertheless, these are new revenue opportunities for Speedcast, as well as an opportunity to acquire at the low point in the cycle.

UBS notes, with around 60% of the earnings base now stemming from Harris Caprock, outperformance will be reliant on a recovery in energy markets. Gearing has also become more aggressive.

The broker downgrades to Neutral from Buy. Target falls to $3.80 from $4.50.

SILVER LAKE RESOURCES LIMITED ((SLR)) Downgrade to Sell from Buy by UBS .B/H/S: 0/0/1

Silver Lake reported September quarter production of 32,900 ozs with an AISC of $1,226/oz and ahead of UBS forecasts.

During the quarter, a significant amount of funds were directed to mine development and pre-production capex for new mines.

UBS downgrades to Sell from Buy following appreciation in the share price. Target is reduced to 58c from 59c.

VIRGIN AUSTRALIA HOLDINGS LIMITED ((VAH)) Downgrade to Sell from Neutral by UBS .B/H/S: 0/3/3

Virgin's Sep Q update showed a surprising fall into loss following last year's profit, breaking a consistently improving trend since mid-2014, UBS notes, and despite a lower fuel bill. Domestic revenues must have declined materially, the broker suggests, more so than Qantas' ((QAN)) 3%.

UBS has cut forecasts and notes an ongoing lack of dividend will not help sentiment, albeit a share price floor is provided through the five major shareholders holding a net 89%. Target falls to 19c from 25c. Downgrade to Sell.

WOOLWORTHS LIMITED ((WOW)) Downgrade to Reduce from Hold by Morgans .B/H/S: 0/2/4

The highlight in the September quarter was the 0.7% comparable growth in food sales, which Morgans observes is the first positive comparable since the second quarter of 2015. Despite this, the broker believes margins are likely to remain under pressure.

Although there are signs of improvement, Morgans believes the competitive environment will become more difficult. Rating is downgraded to Reduce from Hold. Target is reduced to $21.00 from $24.79.

 

Total Recommendations
 Recommendation Changes

 

Broker Recommendation Breakup

 

Broker Rating
 
Order Company New Rating Old Rating Broker
Upgrade
1 AWE LIMITED Neutral Sell Macquarie
2 BT INVESTMENT MANAGEMENT LIMITED Buy Neutral Macquarie
3 CROWN RESORTS LIMITED Buy Neutral UBS
4 CSR LIMITED Neutral Sell Ord Minnett
5 JAMES HARDIE INDUSTRIES N.V. Neutral Sell Ord Minnett
6 NINE ENTERTAINMENT CO. HOLDINGS LIMITED Buy Neutral Credit Suisse
7 NORTHERN STAR RESOURCES LTD Buy Neutral Citi
8 REA GROUP LIMITED Buy Neutral Macquarie
9 RELIANCE WORLDWIDE CORPORATION LIMITED Buy Neutral Ord Minnett
10 SCENTRE GROUP Buy Sell Morgan Stanley
11 SIMS METAL MANAGEMENT LIMITED Buy Neutral Ord Minnett
12 WESFARMERS LIMITED Buy Neutral Ord Minnett
13 WHITEHAVEN COAL LIMITED Buy Sell Credit Suisse
Downgrade
14 AMP LIMITED Neutral Buy Credit Suisse
15 CSR LIMITED Neutral Buy Credit Suisse
16 FORTESCUE METALS GROUP LTD Sell Neutral Credit Suisse
17 MACQUARIE GROUP LIMITED Neutral Buy Credit Suisse
18 MACQUARIE GROUP LIMITED Neutral Buy Deutsche Bank
19 SILVER LAKE RESOURCES LIMITED Sell Buy UBS
20 SPEEDCAST INTERNATIONAL LIMITED Neutral Buy UBS
21 VIRGIN AUSTRALIA HOLDINGS LIMITED Sell Neutral UBS
22 WOOLWORTHS LIMITED Sell Neutral Morgans

Recommendation

Positive Change Covered by > 2 Brokers

Order Symbol Company New Rating Previous Rating Change Recs
1 CWN CROWN RESORTS LIMITED 83.0% 50.0% 33.0% 6
2 WHC WHITEHAVEN COAL LIMITED -13.0% -38.0% 25.0% 8
3 REA REA GROUP LIMITED 29.0% 14.0% 15.0% 7
4 AWE AWE LIMITED 21.0% 7.0% 14.0% 7
5 MYO MYOB LIMITED 33.0% 20.0% 13.0% 6
6 RWC RELIANCE WORLDWIDE CORPORATION LIMITED 38.0% 25.0% 13.0% 4
7 SFR SANDFIRE RESOURCES NL 25.0% 13.0% 12.0% 8
8 WES WESFARMERS LIMITED -6.0% -13.0% 7.0% 8
9 SGM SIMS METAL MANAGEMENT LIMITED 21.0% 14.0% 7.0% 7
10 JHX JAMES HARDIE INDUSTRIES N.V. 57.0% 50.0% 7.0% 7

Negative Change Covered by > 2 Brokers

Order Symbol Company New Rating Previous Rating Change Recs
1 BPT BEACH ENERGY LIMITED 8.0% 42.0% -34.0% 6
2 SDA SPEEDCAST INTERNATIONAL LIMITED 50.0% 75.0% -25.0% 4
3 MMS MCMILLAN SHAKESPEARE LIMITED 33.0% 50.0% -17.0% 3
4 WOW WOOLWORTHS LIMITED -67.0% -50.0% -17.0% 6
5 VAH VIRGIN AUSTRALIA HOLDINGS LIMITED -50.0% -36.0% -14.0% 7
6 FMG FORTESCUE METALS GROUP LTD -21.0% -7.0% -14.0% 7
7 AMP AMP LIMITED 56.0% 69.0% -13.0% 8
8 GNC GRAINCORP LIMITED 50.0% 60.0% -10.0% 6
9 HGG HENDERSON GROUP PLC. 20.0% 25.0% -5.0% 5
10 ECX ECLIPX GROUP LIMITED 80.0% 83.0% -3.0% 5

Target Price

Positive Change Covered by > 2 Brokers

Order Symbol Company New Target Previous Target Change Recs
1 WHC WHITEHAVEN COAL LIMITED 2.811 2.549 10.28% 8
2 BPT BEACH ENERGY LIMITED 0.680 0.657 3.50% 6
3 WOW WOOLWORTHS LIMITED 21.527 21.063 2.20% 6
4 MYO MYOB LIMITED 3.920 3.844 1.98% 6
5 ORG ORIGIN ENERGY LIMITED 6.148 6.043 1.74% 8
6 SGM SIMS METAL MANAGEMENT LIMITED 9.880 9.737 1.47% 7
7 SDA SPEEDCAST INTERNATIONAL LIMITED 4.315 4.270 1.05% 4
8 HGG HENDERSON GROUP PLC. 4.340 4.303 0.86% 5
9 RRL REGIS RESOURCES LIMITED 3.215 3.203 0.37% 8

Negative Change Covered by > 2 Brokers

Order Symbol Company New Target Previous Target Change Recs
1 AMP AMP LIMITED 5.293 5.898 -10.26% 8
2 REA REA GROUP LIMITED 55.184 57.596 -4.19% 7
3 VAH VIRGIN AUSTRALIA HOLDINGS LIMITED 0.233 0.241 -3.32% 7
4 MMS MCMILLAN SHAKESPEARE LIMITED 13.057 13.490 -3.21% 3
5 AWE AWE LIMITED 0.770 0.787 -2.16% 7
6 SFR SANDFIRE RESOURCES NL 5.583 5.698 -2.02% 8
7 JHX JAMES HARDIE INDUSTRIES N.V. 21.583 21.843 -1.19% 7
8 CWN CROWN RESORTS LIMITED 13.512 13.662 -1.10% 6
9 WES WESFARMERS LIMITED 41.148 41.498 -0.84% 8
10 GNC GRAINCORP LIMITED 8.942 8.950 -0.09% 6

Earning Forecast

Positive Change Covered by > 2 Brokers

Order Symbol Company New EF Previous EF Change Recs
1 ECX ECLIPX GROUP LIMITED 25.550 22.017 16.05% 5
2 ANZ AUSTRALIA & NEW ZEALAND BANKING GROUP 229.013 205.575 11.40% 8
3 WHC WHITEHAVEN COAL LIMITED 28.876 26.576 8.65% 8
4 MIN MINERAL RESOURCES LIMITED 56.140 53.840 4.27% 4
5 S32 SOUTH32 LIMITED 17.524 16.906 3.66% 7
6 BPT BEACH ENERGY LIMITED 6.033 5.837 3.36% 6
7 PRT PRIME MEDIA GROUP LIMITED 7.200 6.967 3.34% 3
8 BHP BHP BILLITON LIMITED 108.944 106.672 2.13% 8
9 IGO INDEPENDENCE GROUP NL 9.113 8.942 1.91% 6
10 HVN HARVEY NORMAN HOLDINGS LIMITED 33.820 33.186 1.91% 7

Negative Change Covered by > 2 Brokers

Order Symbol Company New EF Previous EF Change Recs
1 AWE AWE LIMITED -3.000 -0.068 -4311.76% 7
2 ORE OROCOBRE LIMITED -1.100 -0.625 -76.00% 4
3 VAH VIRGIN AUSTRALIA HOLDINGS LIMITED 0.714 1.800 -60.33% 7
4 AMP AMP LIMITED 19.513 34.457 -43.37% 8
5 BKL BLACKMORES LIMITED 421.000 621.733 -32.29% 3
6 AQG ALACER GOLD CORP 12.683 15.020 -15.56% 5
7 BAL BELLAMY'S AUSTRALIA LIMITED 60.967 66.250 -7.97% 3
8 SFR SANDFIRE RESOURCES NL 29.860 32.215 -7.31% 8
9 SDA SPEEDCAST INTERNATIONAL LIMITED 17.002 18.206 -6.61% 4
10 QAN QANTAS AIRWAYS LIMITED 58.868 62.888 -6.39% 7

Technical limitations

If you are reading this story through a third party distribution channel and you cannot see charts included, we apologise, but technical limitations are to blame.

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article 3 months old

Weekly Top Ten News Stories

Our top ten news from 27 October 2016 to 03 November 2016 (ranked according to popularity).

1 Uranium Week: Echoes Of A Decade Ago
Tuesday 01 November 2016 - 10:00 AM
What has changed between now and 2004, when the uranium price was last under US$20/lb?
Weekly update on recommendation, target price, and earnings forecast changes.
CPI outlook; Oz economy and coal prices; telcos under an NBN; Ardent Leisure; food inflation; big infrastructure projects.
4 Orocobre And The Tesla Powerwall
Tuesday 01 November 2016 - 11:59 AM
Orocobre appears to have overcome its lithium production issues in South America just in time for Tesla to announce its new power storage device offers double the capacity.
5 Will The Market Be Trumped Down Ten Percent?
Wednesday 02 November 2016 - 11:03 AM
Peter Switzer of the Switzer Super Report
6 SMSFundamentals: Yield Or Growth?
Thursday 27 October 2016 - 10:00 AM
Which investment strategy has proven to provide the best risk/reward balance for the income-seeking investor over time? You may be surprised.
7 Further Downside For Wesfarmers
Tuesday 01 November 2016 - 10:48 AM
Michael Gable of Fairmont Equities suggests selling Wesfarmers into any rallies.
8 How Long The Buyers' Strike?
Wednesday 02 November 2016 - 10:00 AM
In this week's Weekly Insights: - How Long The Buyers' Strike? - Rudi On Tour - Nothing Ever Changes, Or Does It? - Rudi On TV
9 Copper Set To Rally?
Monday 31 October 2016 - 10:31 AM
The Chartist reports the copper price is showing signs of having reached a bottom.
10 Soft Quarter Signalling More Weakness For Wesfarmers
Thursday 27 October 2016 - 12:41 PM
Brokers raise the spectre of whether soft September quarter sales numbers for Wesfarmers, particularly at Coles, are a sign of more weakness to come.
article 3 months old

Next Week At A Glance

For a more comprehensive preview of next week's events, please refer to "The Monday Report", published each Monday morning. For all economic data release dates, ex-div dates and times and other relevant information, please refer to the FNArena Calendar.


By Greg Peel

Presumably by some time on Wednesday afternoon we’ll know the result of the US election, unless of course it’s too close to call. Even if a Clinton victory is clear-cut, we still don’t know whether Trump will challenge the result.

Before that we have to get through tonight’s US jobs report, but with the Fed now seemingly having made up its mind, this report does not carry a lot of weight. The only issue would be if the number came in way low.

US data is otherwise thin on the ground next week, with consumer credit and the fortnightly consumer sentiment survey the only highlights. Friday is Veterans Day which is one of those half-holidays in which banks and the bond market are closed but stocks and commodities are open. Given 11/11 this year falls on a Friday, we can assume most of Wall Street will be taking a long weekend.

China will nevertheless be back in the frame with October trade and inflation numbers.

The RBNZ holds a policy meeting on Thursday.

In Australia we’ll see ANZ job ads and the NAB business and Westpac consumer confidence surveys along with housing finance numbers.

Earnings results are due from Westpac ((WBC)), DuluxGroup ((DLX)) and Incitec Pivot ((IPL)). Commonwealth Bank ((CBA)) will provide a quarterly update ahead of its AGM.

Next week sees another solid round of AGMs.

Note that US summer time ends of the weekend so as of Tuesday morning the NYSE will close at 8am Sydney time.


Find out why FNArena subscribers like the service so much: "Your Feedback (Thank You)" - Warning this story contains unashamedly positive feedback on the service provided.