Stock Pick

  • 3 things that could impact ASX 200 shares this June

    June calendar on desk next to glasses and laptop

    The S&P/ASX 200 Index (ASX: XJO) had an amazing month in May, rising more than 9% for the month. So much for ‘sell in May and go away’.

    But as we start a new month and a new season, I think it’s still a time to be very cautious as we climb ever further from the lows we saw ASX 200 shares hit in March.

    So here are 3 things that I think we should all look out for this June on the share market.

    1) The spread of the coronavirus

    Of course, this is the primary concern for all investors, as well as all Australians. The share market has been rallying in recent weeks mostly due to the fact that economic restrictions are being lifted in this country as a result of our collective effort to keep the number of coronavirus cases at a minimum.

    We have seen just this week that (according to reporting from the Sydney Morning Herald) South Korea has had to re-tighten restrictions after an uptick in coronavirus cases. If this were to occur in Australia (fingers crossed it doesn’t come to this), it would be bad news for ASX shares.

    2) Government assistance

    As Reserve Bank of Australia governor Philip Lowe pointed out last week, the damage that the coronavirus has done to our economy hasn’t been as nasty as we all first feared.

    Despite this, Dr Lowe also made comments suggesting that government assistance such as the JobKeeper program might have to be expended in order to further insulate the economy. If the government chooses not to go down this path, I think it would be detrimental for the whole economy, and by extension the share market. As such, I think it’s well worth keeping an eye on this space in June.

    3) The almighty USA

    We don’t like to admit it here in Australia, but the direction of most share markets around the world (including the ASX) is really determined by what’s happening over in the good ol’ United States of America. As the old saying goes, if America sneezes, the rest of the world catches a cold.

    Right now, the US government is pumping an extraordinary level of monetary stimulus into the US share markets, which is partly to thank for their (and our) bountiful 2 months of gains since March.

    But if things were to go south Stateside, I fear the effects would spill over to our own ASX. Thus, the US is definitely worth watching as we journey into June.

    So if you’re keen to keep your eyes on some shares this month, make sure you don’t miss the 5 named below!

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    Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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.

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  • 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.

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

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