AMP: no light at the end of the tunnel

AMP’s 2019 financial report, released last week, points to “ongoing weakness” in the business, according to a Macquarie Securities review of the results. Macquarie says the company’s results presentation suggests a further 20 per cent contraction in its Australian wealth…

Volatile reporting season ahead

A leading analyst has forecast a bumpy profit season, as companies downgrade their forecasts. Share price reactions have been sharp following ‘negative surprises’. Macquarie Securities says the industrials sector will be flat, with no overall earnings growth this financial year.…

Banks under more earnings pressure

Profit reporting season starts this week and investors will be keen to see if there is any sign of a turnaround in the banks’ earnings. It doesn’t look likely, as revenue pressure emerges from several new directions. Banks are facing…

Driven by dividends: Aussie sharemarket over the past decade

Dividends accounted for more than half the growth of the Australian sharemarket over the past decade. The S&P/ASX 300 produced a total return of 7.8 per cent a year over the 2010s, with dividends accounting for 59 per cent of…

High ESG ratings a pointer to strong performance

Macquarie Securities has released its annual ESG Ratings Survey, confirming that ASX-listed companies with high ESG scores are outperformers. Since Macquarie started giving companies ESG ratings in 2011, high-scoring companies have outperformed low-scoring companies, with a relative outperformance of 4.2…

What price Prospa now?

The chair and joint chief executives of small business lender Prospa were contrite at the company’s annual general meeting last week, offering apologies for the company’s failure to meet prospectus forecasts. Now, the questions for investors are when the company…

Stock picks for a low-rate world

Bond yields will continue to fall, driven by the negative impact of recent tariff increases, according to a new equity market report by Macquarie Securities. In an ongoing low-rate environment, Macquarie likes bond proxies and defensive stocks. It says its…

What stocks to hold to play the gold boom

Macquarie Securities’ commodities team issued a note saying it had raised its gold price outlook and that this had triggered earnings upgrades for the gold stocks it covers. It has re-rated a number of gold producers ‘outperform’. Macquarie says that…

Defensive options for your share portfolio

Macquarie Securities has recommended a shift to a more defensive Australian equity position in its model portfolio, suggesting that clients add gas and electricity company APA Group, real estate investment trust GPT, toll road operator Transurban, gold miner Ora Banda…

Profit season: lofty valuations meet grim reality

The average growth in earnings per share in the reporting season that starts this week will be a modest 3.9 per cent, with most of the growth coming from the resources sector. Macquarie says this reporting season represents the “trough…