Australia Stock Market Report – AMP, Webjet, Afterpay shares & more

Australia Stock Market Report - AMP, Webjet, Wisetech, Afterpay shares & more

Market Commentary and Stock Tips

Highlights

Can Mother Teresa’s disciple work a miracle at AMP – Two stocks dazzle the market – Two telco wannabes want to combine – TPG & Vodafone not such an odd couple – Gas and Oil light the fire under their respective stocks – The travel quadrella an each way bet – Political pantomimes take centre stage. 

First political side show a tale of two countries

While the Donald’s personal lawyer appears to have dobbed in his boss in relation to paying off two women who allegedly had affairs with the Donald 10 years ago, the US economy and market just keep moving along.  Indeed their share market indexes are continuing to hit record highs, their economic growth is the best for over two decades and the unemployment rate is at the lowest since 1970!

But move over to the Pacific, and our very own Canberra performance continues to bemuse and confuse all who care to take an interest.  Whether it’s Turnbull; Bishop; Dutton or Morrison or someone else it’s really the side show, we didn’t want, but seems like we have to pay the price. However and despite it all, our market took this pretty much in its stride- Facts are there have been some great company results and the main share market index only retraced by about 1% over the week.

Can the Saint’s helper be a saviour to AMP?

AMP has been through trials and tribulations of late, which would test the patience of Job. But now are we seeing the age of Enlightenment? Francesco De Ferrari, a person who worked for several months with the Calcutta Saint Mother Teresa, has now donned the boss’s mantel at AMP.  Indeed AMP shares have defied the market softness this week in the wake of the anointing of Francesco as head honcho. But for me I believe we need to see some runs on the board in the AMP ship of state before we get on board so to speak. 

The travel quadrella go their separate ways

First we have the star of the show which is WebJet.  Not only did it deliver a strong profit result up 63% but its dividend was also increased by 20% and its future is very positive.  Short half head behind was Corporate Travel which didn’t quite match WebJet but it was a super result nevertheless. On the other hand Qantas is facing some turbulence under the weight of higher oil prices.  Its stellar growth of recent years may now be nearing an end.  Not far behind Qantas was Flight Centre which delivered a very workman like result with a reasonably strong profit performance, dividend up over 6% but also encountering heavy weather in the labour relations area but is now in the throes of a new enterprise bargaining agreement with its workers.

Cooking with Gas – the way to go, but iron ore not so hot

After almost sinking under the weight of a huge debt load, Santos is now resurfacing after getting its debt down by divesting noncore assets, cost cutting and focusing on productivity enhancements and producing more gas and LNG. Not only was its report good, but its future outlook is also very positive. 

Are Australian Technology stocks the flavour of the month for foreigners?

Without doubt the stars of the show this week were IT related stocks which are listed on our market.  First we have Wisetech which is an international IT logistics company whose share price rose over 30% on the day of its report, which was kept in company by a computer software developer Altium whose share price rose by a similar amount. And to round it off we have the buy now pay later stock Afterpay Touch whose share price is also soaring through the stratosphere due to its expansion strategy. The growth prospects of these 3 stocks continue to be strong, but these shares are for those investors who have a higher tolerance to risk.

Stop Press

BHP: a very impressive result, but not as good as some expected, but it’s got cash to burn 

TPG & Vodafone: there could be a union in the air and both stocks and Telstra share prices shot up. 

Coca-Cola: a workman-like result but its sugary drinks are not looking so sweet. 

Woolworths: another reasonable result, but Coles are performing better with their apparently successful pitch to the kindergarten army. 

Stock Tips- Please ring Michael on 03 8633 9925 if you wish to discuss.

Next Week in Australia…

Wednesday: Building approvals and Capital investment.

In the USA

Manufacturing data; consumer confidence; gross domestic product; and home sales figures.

 

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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