Australian Stock Market News – Breville, CSL, Cochlear shares & more
Market Brief and Stock Tips
Economic data aplenty, but a dearth of company news – so the market ponders lugubriously.
But are banks back in town?
Of the major stocks to perform over the last month, the big banks have been winners. Three of the major banks and Macquarie were up around 2 – 3% in share price over the last month (ANZ was the laggard). However all major banks except CBA are reporting in the next few weeks with the expectation of dividends being maintained or increased slightly.
My view, all major banks now look on the recovery trail and are attractive.
RIO – “don’t look a gift horse in the mouth?”
The Off-market buy-back by Rio Tinto is a most attractive proposition for self-managed super funds in pension mode (i.e. the super fund doesn’t pay tax on its earnings). The main benefit of these kind of buy-backs is that the buy-back price is comprised of a very substantial amount of a full-franked dividend----and it is this franking component which is particularly valuable. If any clients are uncertain in relation to any aspect of this buy-back please call me on 03 8633 9925
CSL gets its vaccine shot
While the flu has hit many of us hard over winter and spring, CSL, being the flu vaccine maker does well. However, CSL is also a world leader in blood plasma fractionation and continues to perform superbly.
My view, CSL and Cochlear remain gold star market performers
Infrastructure is the word:
Australia’s major infrastructure stock Cimic continues to win contracts.
My view Cimic is on my Preferred List.
The Stock Market’s owner performs well:
ASX’s recent trading results looked quite impressive and look to be a good alternative to Telstra paying a 3-4% fully franked dividend.
The recent decision to leave interest rates on hold was no surprise but an increase next year is almost a certainty. This is particularly so if the US raise rates later this year.—and given that we are now into the Spring Racing Carnival in Melbourne “its London to a brick that it will happen” – (apologies to Bert Bryant for those who can remember).
One stock that has flown under the radar in recent times but looks good as far as share market fundamentals are concerned is childcare provider G8. It’s been one of the best share market performers of the last month and year. Also, kitchen appliance maker Breville also looks good with its domestic and international exposure. And after a torrid time over the last six months in particular, the CommonwealthBank now looks very attractively priced with its dividend of over 5% fully franked. Finally, major resource stock Rio Tinto is also looking impressive with improving economies right around the world including the US, Europe, South East Asia and China.
Next week in Australia
On Wednesday building construction figures and housing finance
In the United States
Inflation and employment and unemployment data
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