Australian Stock Market News – BHP, TPG, Telstra Shares & more

Australian Stock Market News BHP TPG Telstra Shares more

The Market Last Week, Next Week and Stock tips - 13th April 2017

Highlights

Believe It or Not – Business conditions are the best since the Global Financial Crisis (NAB survey) – Just who runs BHP, Hedge Funds or Management? TPG Could it be the Mouse that Roared? – CIMIC (nee Leightons) goes to the Sub-Continent – Housing comes off the boil.

NAB Survey skewers the doomsayers again.

Despite geopolitical tensions, local business conditions have emerged from the depths and are now at the best levels seen since the onset of the GFC in 2008. Not to be completely outdone, business confidence is also at solid levels but not quite as robust as business conditions (a somewhat curious result). All sectors are firing except retail.  

Who’s the Boss - BHP or Hedge Fund Elliot Associates?

In my younger days, I thought that hedge funds was paper money placed under the Lily Pillis at the front fence. But no, it is in fact financial house that believes that it can provide protection from the financial visitudes of the marketplace – Well that’s what they say - This time, its Elliott Associates who provided gratuitous advice to BHP that they sell off oil interests in the US and shift their home base in the City of London - Not surprising BHP quickly rejected this proffered advice saying that the costs outweighed the benefits. Time will tell. In the meantime BHP looks at attractive resource stock.

The Mouse that Roared – It’s not Litchenstein.

TPG which is a relative minnow in the telco arena ($5 billion market cap compared with Telstra’s $50 billion), it announced it will spend about $1.8 billion over 3 years to roll out mobile phone towers covering 80% of the population. It seems a tall order to me but Telstra’s share price still fell 7% in the minutes after the announcement.

My view: - Reserved for clients  

CIMIC – An Indian Giver  

After last week announcing that it would build Hong Kongs airport terminal, this week, its building an IKEA store in Hydreabad in India which will provide CIMIC with over $70 million in revenue – Not bad work if you can get it.

Conclusion

For all intents and purposes, it looked like the market was cruising towards 6,000 points before Good Friday. However, TPG spoilt the party causing a significant hiccup in Telstra share price. But after the markets digestive system settles down I believe we will again shift into cruise control in the lead up to the May reporting season (for the 3 major non-CBA banks and Macquarie), and of course the Commonwealth Budget on the 9th May. Look out for more updates on Australian stock market news next week.

Stock Tips

Reserved for clients

stock tips by Michael Heffernan

Looking ahead in Australia

On Tuesday – Reserve Bank minutes of its last meeting    

On Wednesday – Motor Vehicle sales and Westpac’s leading indicator

On Thursday – National Banks quarterly business survey.

Looking ahead in the US

Manufacturing and industrial production and capacity utilisation figures, housing sales, Central Banks economic outlook and surveys of the services, construction and manufacturing sector.

 

Disclaimer: This publication has been prepared solely for the information of the particular person to whom it was supplied by Phillip Capital Limited (“PhillipCapital”) AFSL 246827.  This publication contains general financial product advice.  In preparing the advice, PhillipCapital has not taken into account the investment objectives, financial situation and particular needs of any particular person.  Before making an investment decision on the basis of this advice, you need to consider, with or without the assistance of an adviser, whether the advice in this publication is appropriate in light of your particular investment needs, objectives and financial situation.  PhillipCapital and its associates within the meaning of the Corporations Act may hold securities in the companies referred to in this publication.  PhillipCapital believes that the advice and information herein is accurate and reliable, but no warranties of accuracy, reliability or completeness are given (except insofar as liability under any statute cannot be excluded). No responsibility for any errors or omissions or any negligence is accepted by PhillipCapital or any of its directors, employees or agents. This publication must not to be distributed to retail investors outside of Australia. 

 

About Michael Heffernan

+61 (3) 8633 9925 Email Profile

Michael Heffernan has over 30 years’ experience in the finance and securities industry and is currently a Senior Client Advisor and Economist with a leading Australian Sharebroker Phillip Capital after having been Chief Economist/Lawyer with the Australian Stock Exchange for 13 years, and an Economist with Commonwealth Department of Employment and Industrial Relations for 11 years.

Most recently Michael topped the poll of the Australian Newspaper's Criterion column of his expert tipsters for 2014 with an average increase of 26% over the year. Also Michael was named Stock Picker of the year 2013 and 2016 at the Australian Stockbrokers Foundation Annual Awards Charity Dinner.

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