Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Pleasing reporting season despite ANZ softer revenue growth

Investors likely to be pretty pleased with the reporting season so far despite ANZ softer revenue growth

By Ric Spooner (Chief Market Analyst, CMC Markets)
15 August 2014
www.cmcmarkets.com.au

Offshore leads should provide a positive macro background for this morning’s share market opening. Mr. Putin’s comments that Russia would stand up for itself but not at the cost of confrontation with the outside world saw further unwinding of risk premium. This was most evident in the oil market which continued its downtrend last night. Consequently oil stocks may be a soft sector in today’s trading.

ANZ’s result will be a key for market sentiment this morning. Banks share prices have struggled to make headway in recent months. This indicates that bank valuations have reached levels that are somewhat of a ceiling for potential buyers at this stage. CBA failed to rally after a better than expected dividend announcement this week, news that the market would have embraced warmly 12 months ago.

The negative aspects of today’s quarterly update from ANZ were pressure on revenues and ongoing reliance on reduced provisioning. However, those looking for a cyclical upturn in the economy will be pleased by news that corporate lending is showing signs of improvement.

Overall, investors are likely to look back on a busy week with relative satisfaction. Expectations for the current reporting season had set the bar at pretty high levels. This was not necessarily going to be an easy task given soft economic growth. So far good cost control has yielded overall results that have been good enough to see a rise in the index over the week.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Tourism: China Southern Airlines To Fly To Christchurch

China Southern Airlines, in partnership with Christchurch Airport and the South Island tourism industry, has announced today it will begin flying directly between Guangzhou, Mainland China and the South Island. More>>

ALSO:

Dodgy: Truck Shops Come Under Scrutiny

Mobile traders, or truck shops, target poorer communities, particularly in Auckland, with non-compliant contracts, steep prices and often lower-quality goods than can be bought at ordinary shops, a Commerce Commission investigation has found. More>>

ALSO:

Auckland Transport: Government, Council Agree On Funding Approach

The government and Auckland Council have reached a detente over transport funding, establishing a one-year, collaborative timetable for decisions on funding for the city's transport infrastructure growth in the next 30 years after the government refused to fund the $2 billion of short and medium-term plans outlined in Auckland's draft Unitary Plan. More>>

ALSO:

Bullish On China Shock: Slumping Equities, Commodities May Continue, But Not A GFC

The biggest selloff in stock markets in at least four years, slumping commodity prices and a surge in Wall Street's fear gauge don't mean the world economy is heading for another global financial crisis, fund managers say. More>>

ALSO:

Real Estate: Investors Driving Up Auckland Housing Risk - RBNZ

The growing presence of investors in Auckland's property market is increasing the risks, and is likely to both amplify the housing cycle and worsen the potential damage from a downturn both to the financial system and the broader economy, said Reserve Bank deputy governor Grant Spencer. More>>

ALSO:

Annual Record: Overseas Visitors Hit 3 Million Milestone

Visitor arrivals to New Zealand surpassed 3 million for the first time in the July 2015 year, Statistics New Zealand said today. The record-breaking 3,002,982 visitors this year was 7 percent higher than the July 2014 year. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news