FNArena’s Weekly Insights – August 09 2021
In this week’s Weekly Insights:
-Early Days, But Plenty Of Signs
-Not To Be Forgotten: The Bond Market
-Conviction Calls
-FNArena Talks
-All-Weather Model Portfolio
By Rudi Filapek-Vandyck, Editor FNArena
Early Days, But Plenty Of Signs
The August reporting season in Australia is still very young. The FNArena Corporate Results Monitor only contains 19 updates on Monday, August 9th (see further below), but already the main themes of the season are there for all to see:
-A humongous dividend from Rio Tinto, including a bonus payout
-A special dividend from Suncorp
-The promise of a share buyback from News Corp
-Asset sales are in full swing, as is M&A
-Industrial bricks and mortar assets continue enjoying revaluations
-Just under half (9 out of 19) of companies performed better-than-expected
-Covid-losers are achieving the strongest bounce-backs (unsurprisingly), but covid-winners are not by default turning into losers
-Those who miss market expectations (only a few to date) are likely to do so because of higher costs
-Covid and lockdowns continue having an impact, as expected
-Overall, companies remain reluctant to provide quantitative guidance
-Analysts remain conservative in their forecast upgrades given lockdowns and other uncertainties
Take a short stroll through the aforementioned Corporate Results Monitor and all of these themes will be found. It’s early days still, but it is well possible the rest of August will simply provide investors with more of the same.
FNArena’s Corporate Results Monitor will now be updated daily:
