In general we are sceptical about capital raisings in Australia, with the ‘private placement’ structure heavily tilted towards investment banks, broking houses (and their clients) and pension funds able to take on outsized allocations.
The S&P/ASX 200 (ASX: XJO) fell on Thursday, taking the US lead to fall 1%, driven primarily by the banking sectors as investors become wary of the need for greater loan provisions.
There are plenty stepping up to criticize industry super funds for their apparently overloaded weight to real assets that can’t be realised or readily valued in a period of market turmoil.
The S&P/ASX 200 (ASX: XJO) rose on Tuesday and is expected to rise again today following US markets.
Investors who are relying on bank stocks for dividends may need to look elsewhere as new measures mean they are likely to miss out on the equity income.
With investors desperately searching for strategies that have held up in the COVID-19 crash, the Cor Capital Fund is one that stands out, with a return for the March quarter of 0.47 per cent, net of fees – and a rise in April, at time of writing, of 2.75 per cent.
The Afterpay (ASX: APT) share price has jumped at the open after the buy now, pay later company gave a COVID-19 update. The share price is up 9 per cent in early trading.
Australian real estate investment trusts (REITs), often considered a defensive component in a portfolio, suffered the biggest fall of any asset class in March, according to Morningstar’s review of returns for the month.
Australian oil stocks including Woodside Petroleum Ltd (ASX: WPL), Santos Ltd (ASX: STO) and Oil Search Limited (ASX: OSH) will rebound.
In my opinion, RPMGlobal Holdings Ltd (ASX: RUL) is a hidden ASX small-cap share worthy of your attention.
