Australian Stock Market Report – Bega, Cimic, Transurban shares & more

Australian Stock Market Report

Market Commentary and Stock Tips

Highlights

Resources Boom for shareholders – Bega, The cheesemaker goes for Victorian milk – Trump does it again, so what’s the surprise? – Cimic, formerly Leighton’s delivers a pretty impressive set of numbers – Transurban is the West Connex Sydney Toll road a road too far?

Did Putin really come up Trumps?

The Helsinki tete a tete between the supremos of Russia and The US looked very much like a session of cuddly cuddles, as the Presidents of both countries both waxed lyrical.  So much so, that the world believed that “The Donald” had gone a bridge too far in his amicability with Vladamir – but as is not unusual for “The Donald”, we saw him do a pirouette with his comments the very next day.

As far as I am concerned I am immune to the not very amusing musings of “The Donald” – in fact, world sharemarkets and economies seem to be discounting whatever Donald says anyway.

Mining Twins - minerals are shining brightly

The Tweedle-Dum and Tweedle-Dee of the Australian resources sector (BHP and RIO), after struggling to recover from their proverbial pounding of 2015 and 2016, when the prices of oil and iron ore sank to the lowest in a decade, there has been an almighty recovery----both have now shed the hubris of earlier times.  The have gone “hell for leather” to reduce costs, sell off non-core assets and lift productivity, to the ultimate benefit of shareholders, who after all actually own the company.  The boards and senior management of BHP and RIO are now starting to understand that at last.

In summary BHP and RIO are shaping up to provide a dividend bonanza next month , as both companies are very cashed-up.

Bega - It’s not just an idyllic southern NSW seaside village

It’s now seeking a foothold in the luscious Victorian Western District.  This successful cheese and dairy maker is now seeking to add more than a gallon or two of milk to its dairy portfolio.  It’s proposing to purchase the Koroit milk producing assets owned by the former Murray-Goldman, which is now owned by the Japanese Saputo company.  In brief, if investors are looking for exposure to Australia’s dairy assets they couldn’t do much better than looking carefully at Bega.

Stop Press

Perpetual Trustees, another disappointing quarterly funds outflow result – best to look elsewhere.

Navitas – A profit downgrade – look elsewhere

Asaleo – Another profit downgrade – best to look elsewhere

Afterpay Touch – another super business update

Stock Tips - Reserved for Clients

australian stock market weekly report

Next Week in Australia…

Tuesday – Skilled Vacancies

Wednesday – Consumer Price Index

Thursday – Producer Price Index

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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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