Stock Pick

  • Hong Kong Stocks See Relief Gains; Dollar Slips: Markets Wrap

    Hong Kong Stocks See Relief Gains; Dollar Slips: Markets Wrap(Bloomberg) — Stocks in Asia nudged higher, with Hong Kong jumping at the open after U.S. President Donald Trump on Friday stopped short of specifying tough sanctions over China’s new national security law for Hong Kong.The dollar retreated. Hong Kong’s Hang Seng saw early gains of over 3%, while Tokyo, Seoul, Sydney and Shanghai saw more modest moves. U.S. stock futures erased earlier declines as investors weighed the violent protests in some American cities that have stoked concerns about a reacceleration in infection rates and a damper on the economic recovery. Crude oil fell.The escalation in tensions between the U.S. and China last month had threatened to derail a recovery in global equities. While the U.S. president’s speech Friday was heated in rhetoric, it lacked specifics around measures that would directly affect Beijing.“President Trump’s response on Friday was pretty muted and far less disruptive than markets had feared,” said Shane Oliver, head of investment strategy at AMP Capital Investors Ltd. in Sydney.The U.S. president also promised sanctions against Chinese and Hong Kong officials “directly or indirectly involved” in eroding Hong Kong’s autonomy but didn’t identify individuals. The administration hasn’t yet decided under what authority it would implement that action, according to a person familiar with the matter.“The impact is likely to be limited and more symbolic while the financial sector is unlikely to be affected,” Sean Darby, Jefferies’ global equity strategist in Hong Kong, wrote in a research note. “We are not too surprised by the move and don’t expect the Hong Kong financial markets to be either.”Here are some key events coming up:Australia’s central bank is expected to keep its main policy programs unchanged on Tuesday. So too is the case for Canada, which has options to add stimulus but will probably stand pat on Wednesday to allow more time to evaluate the progress of policy action.In Europe, the ECB is expected to top up its rescue program with an additional 500 billion euros of asset purchases. Anything less than an expansion at Thursday’s meeting would be a big shock, Bloomberg Economics said.The U.S. labor market report on Friday will probably show American unemployment soared to 19.6% in May, the highest since the 1930s.These are the main moves in markets:StocksFutures on the S&P 500 Index rose 0.1% as of 10:50 a.m. in Tokyo. The index climbed 0.5% on Friday.Japan’s Topix index rose 0.5%.Hong Kong’s Hang Seng advanced 3.4%.South Korea’s Kospi index rose 1.3%.Australia’s S&P/ASX 200 Index gained 0.7%.Euro Stoxx 50 futures advanced 1.3%.CurrenciesThe yen rose 0.1% to 107.68 per dollar.The euro bought $1.1135, up 0.3%.The offshore yuan rose 0.1% to 7.1263 per dollar.The Australian dollar climbed 0.9% to 67.27 U.S. cents.BondsThe yield on 10-year Treasuries rose one basis point to 0.66%.Australia’s 10-year yield was at 0.90%, up about one basis point.CommoditiesWest Texas Intermediate crude fell 0.6% to $35.27 a barrel.Gold rose 0.4% to $1,737.21.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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  • OneVue share price skyrockets 60% after Iress launches $107m takeover offer

    The OneVue Holdings Ltd (ASX: OVH) share price is flying higher this morning, up by as much as 60.42% on the back of a takeover deal by Iress Ltd (ASX: IRE).

    OneVue is a provider of superannuation, funds management and investment solutions, supporting financial services by providing technology and service solutions to its clients. It competes with larger ASX players Netwealth Group Ltd (ASX: NWL) and Praemium Ltd (ASX: PSS) in the independent specialist platform space.

    Why the OneVue share price is skyrocketing

    This morning, OneVue announced it has entered into a binding scheme implementation agreement with Iress at 40 cents cash per share. This represents a 66.7% premium to OneVue’s last closing price of 24 cents on Thursday.

    The agreement remains subject to certain conditions, including an independent expert concluding that the scheme is in the best interest of OneVue shareholders, an ACCC statement that it does not oppose the scheme, and approval by the court.

    The OneVue board unanimously recommends that shareholders vote in favour of the scheme if these conditions are satisfied.

    Subject to ASIC registration and court approval, the scheme booklet is expected to be distributed to OneVue shareholders in early August 2020. Following this, shareholders will meet to vote on the scheme in early September 2020.

    Commenting on the takeover, OneVue managing director Connie Mckeage said:

    “We are pleased to have entered into an agreement with Iress to acquire OneVue. The offer represents a significant premium to our current share price and a full cash offer provides compelling certainty for our shareholders. Iress is a company we have significant respect for and we know they are committed to delivering high levels of service to our clients and are looking forward to working more closely alongside our clients and partners.”

    Connie Mckeage will play an important role during the transition period and will consult Iress on growth, strategy, and clients after completion.

    Why Iress is acquiring OneVue

    Explaining the strategic rationale behind the acquisition, Iress chief executive Andrew Walsh said:

    “The combination of OneVue’s strength and position in administration of managed funds, superannuation, and investments, with Iress’ strength in software and data will drive innovation through technology. This includes the development of software and services that brings advice and investments closer together, resulting in greater efficiency and productivity for professional advisers and businesses in Australia.”

    Iress also announced an equity raising this morning to strengthen its balance sheet and partly fund the $107 million OneVue acquisition.

    This will consist of a fully underwritten placement of $150 million to institutional and sophisticated investors, as well as a non-underwritten share purchase plan to raise approximately $20 million. The placement will be conducted at $10.42 per share, representing a 7% discount to Iress’ last closing price of $11.21 on Friday.

    5 “Bounce Back” Stocks To Tame The Bear Market (FREE REPORT)

    Master investor Scott Phillips has sifted through the wreckage and identified the 5 stocks he thinks could bounce back the hardest once the coronavirus is contained.

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    More reading

    The post OneVue share price skyrockets 60% after Iress launches $107m takeover offer appeared first on Motley Fool Australia.

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  • Afterpay share price rockets 50% in May, is it in the buy zone?

    man hitting digital screen saying buy now pay later, BNPL, Afterpay share price

    The Afterpay Ltd (ASX: APT) share price has been a hot commodity in 2020. In fact, shares in the buy-now-pay-later leader surged 51.96% last month as investors scrambled to buy in while the S&P/ASX 200 Index (ASX: XJO) jumped 4.22% higher.

    Why did the Afterpay share price surge 50% higher in May?

    The company announced it reached 5 million active customers in the USA during May. Afterpay now has nearly 9 million customers in the US with a 30-40% increase in the weekly run rate from January and February. 

    More than 15,000 brands now offer, or are in the process of offering, Afterpay to their customers. Afterpay also reported 15 million app and site visits in April 2020 which was good news for shareholders and the company’s share price.

    The positive update was just one factor pushing the group’s shares higher. Chinese internet giant Tencent Holdings purchased a 5% stake in the Aussie company for $300 million. This could provide an opening to the lucrative Chinese market for Afterpay in the years ahead.

    These were just a couple of the catalysts pushing Afterpay’s value past $12 billion. I also think momentum was a huge contributing factor following on from the strong surge its share price enjoyed in April 2020.

    This momentum helped push the Afterpay share price to a new all-time high of $50.01 in May before it closed the month at $47.41 per share. If the strong growth continues in 2020, I can see Afterpay climbing inside the ASX 50 before the year is out.

    Should you buy into Afterpay?

    It’s hard to bet against an ASX 200 share that is up 435% since 23 March. However, the Afterpay share price is hot property right now and I think it could be dislocated from fundamentals.

    This means I see Afterpay as a speculative buy. It could provide great growth potential and be a strong share to buy in 2020. However, there is still competition and regulatory risk that threaten Afterpay’s potential growth.

    If you feel the Afterpay share price is too expensive to buy right now, here are 5 good and cheap ASX shares to buy instead!

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    One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

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    More reading

    Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Xero. The Motley Fool Australia owns shares of AFTERPAY T FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

    The post Afterpay share price rockets 50% in May, is it in the buy zone? appeared first on Motley Fool Australia.

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