Australian Stock Market Report – Woolworths, BHP, Bapcor shares & more

Woolworths, BHP, Bapcor shares & more

Market Commentary and Stock Tips - 6 July 2018

That was the financial year that was – The Good the Bad and the Ugly

But so far this calendar year our market leads the pack (compared with major overseas bourses) – Woolworths back on track with a fuel injection – auto parts reseller Bapcor --- has it become a tyre kicker? -  Low and behold is that someone else using Frank Costa’s name? – Reserve Bank remains in the slumber zone.

 

Trump Tweets - Tariff Tantrums - and Royal Commission Revelations

Despite the above traumatic trifecta, it is doubly surprising that the share market and the economy have managed to perform as well as they have.

And so it was a real eye opener to see that so far this year our market has outperformed all other major share market indexes.  More precisely in the first six months of this year our market was up 2.4%, whilst the New York Dow Jones was down 2.2%, France down 0.18% UK down 4.9% and Germany worst of all down 4.6%.  But there is more---as Tim Shaw used say…because, 

Over the financial year as a whole our market is up 8% and if you add in dividends it’s up 12.8%! --again the best in the world except for the Dow, which was a short half head in front over the same time. 

 

Now it’s the Good the Bad and the Ugly---for the year 2017/18 

Now if it is not mixing colours, the gold medals in the blue chip arena go to CSL up 42%, BHP up 41% Macquarie Group up 35% and RIO up 26%.  And in the mid cap arena it was raining gold. A2Milk  up 177%, Wisetech up 134%, Santos up 106%, Bellamy’s up 91%, Xero (not in keeping with its name) up 82%, Reliance World Wide (plumbing business) up 71% and Flight Centre at cruising altitude up 60%

Now to the wooden Spooners - No prizes for getting these little babies right –Telstra down 30%, AMP down 30% Ramsay Healthcare down 27% and Magellan Financial Group down 23%.

 

Woolworths gets a high octane fuel injection

Woolworths has tied the knot with Caltex in a 15 year arrangement (well it’s not quite tying the knot – more like a trial marriage) to amalgamate Caltex petrol stations with Woolworth’s petrol/convenience stores. Woolworths also advised that they will continue to pursue a float on the market (an IPO as it’s called in the trade) or a sale of its Petrol business.  The market applauded this arrangement, and Woolworths continues on its strong upward trajectory.

For the full version and Stock Tips please call Michael on 03 8633 9925.

australian stock market weekly report 

Next Week

In Australia:

  • Tuesday: NAB Business confidence and home loans;
  • Wednesday: Westpac Consumer Confidence;

In the U.S.A:

Usual range of data: - Consumer and producer prices, Average weekly earnings and University of Michigan confidence Index.

 

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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