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Australian shares off to a positive start

Announcement posted by de2 Communications 08 Aug 2016

8 August 2016 -- SYDNEY:  The Aussie market enjoyed a positive start to the new trading week with the local bulls running with the bullish leads provided by their U.S. counterparts on Friday night.

“Nearly all sectors finished in the green, save for telcos. Energy, financial and consumer discretionary plays shone the brightest,” said Chris Conway, Head of Research at the Australian Stock Report.

Of the oilers, Woodside (WPL) and Oil Search (OSH) were the best performers, adding 1.9% each.

According to Conway, the big four banks all posted gains, with ANZ Banking Group (ANZ) and National Australia Bank (NAB) the best of the bunch, adding 1.8% and 1.4% respectively.

On the day the ASX 200 added 40 points (+0.7%) to settle at 5538.

In company specific news, shares in electronics retailer JB Hi-Fi (JBH) are trading near all-time highs.

“If the company were to buy “The Good Guys” at a favourable price, the shares are likely to outperform,” said Conway.

He added that the outcome of “The Good Guys” IPO or acquisition by an existing operator, could have a significant impact on the future profitability of the industry.

According to Conway, in the case of IPO, a cashed up competitor would not ordinarily bode well for the industry.

But if an existing operator buys it, this will bring a more rationale framework to an industry dominated by three electrical retailers (outside of online which have yet to materially account for industry revenues)

Conway pointed out that industry data over the first half of 2016 suggests a slowing in growth in general for the sector.

He added that Apple will be releasing the iPhone 7 later this year which may improve sales though margins are likely to be little impacted.


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For more information, visit: http://www.australianstockreport.com.au/