Australian Stock Market News – Breville, CSL, Cochlear shares & more

Australian Stock Market News Breville CSL Cochlear shares more

Market Brief and Stock Tips

Overview

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).

Stock Tips

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.

australian stock market news

Next week in Australia

On Wednesday building construction figures and housing finance

In the United States

Inflation and employment and unemployment data

 

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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