Markets Trade in Tight Range | TPG Telecom Jumps

20 September 2017

Global markets were slightly higher overnight as Wall St reset its record highs and the US central bank (Federal Reserve) began a two-day policy meeting.

Volatility remains extremely depressed, particularly in the US as equities remains stuck in one of the tightest ranges in decade. In particular this week investors look to be in "wait and see" mode ahead of the Federal Reserve announcement due Thursday morning AU/NZ time.

Stock in Focus: TPG Telecom (TPM.AX)

A standout performer on the ASX yesterday was TPG Telecom which was up +5% after capping a dramatic financial year by delivering a 16% increase in cash net profit and a 4% increase in revenue that exceeded guidance and market expectations. 

The Aussie Telecommunications space has been fiercely competitive in recent times, driven in part by TPG’s ambitious expansion plans (which saw us downgrade our recommendation on Telstra in mid-April). TPG appear to be progressing with these plans and highlighted that their mobile strategy is on track after making solid progress in the implementation of mobile network rollouts in Australia and Singapore.

We currently have a High-Risk Buy rating on TPG Telecom.

Members should look out for our full update on TPG Telecom to be released in our weekly report.

 

Australia & New Zealand Market Movers

The Australian share market was a touch lower on Tuesday (ASX 200 index -0.12%) as a choppy session for the market ended on a weak note, with stocks that benefit from strong consumer sentiment suffering after the RBA singled rising household debt and stagnant wage growth out again as reasons to remain cautious about the economy. In stock news, troubled live export company Wellard rebounded +16% as it announced its historic first every shipment of beef cattle to China.

 

The New Zealand market was more or less flat yesterday (NZX 50 index +0.08%) with Synlait Milk touching records, and New Zealand Refining recovering. Synlait Milk led the index, up 5.5% to $5.54. The shares rose to a record high on intraday trading after the company posted an 11% gain in full-year profit to $38 million and flagged further growth this year while signalling a move into branded consumer goods.
On the flipside Air NZ shares continue to come under pressure as its domestic and international flights continue to be disrupted and cancelled, as the NZ Refining pipeline shutdown is limiting available jet fuel to about 30% of normal usage.

3 Things Markets Will be Watching this Week

1.                 The polls in NZ as we head towards the general election on Saturday.  

2.                 The US Federal Reserve is due to make a policy announcement Thursday morning AU/NZ time.

3.                 Minutes from the latest Reserve Bank of Australia meeting are released on Tuesday.

Have a Great Day,

Team

Global markets were slightly higher overnight as Wall St reset its record highs and the US central bank (Federal Reserve) began a two-day policy meeting.

Do You Want Daily Market Insights?

If you’re interested in staying up-to-date with the latest news and analysis on stocks, be sure to sign up to BlackBull Research.

1 Month Free Trial

Access our expert stock market research Free of charge with no obligation

Free 1 Month Free Trial

Unlock this article & access our expert stock market research

ASX, NZX & USD Stock Buy, Hold, Sell recommendations. Model Portfolios. Daily news and more

[pmpro_checkout]