Stock volatility near 2016 low

ASX set to open higher

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U.S. stocks closed near a record high after mixed data in the world’s

largest economy bolstered speculation the Federal Reserve will be in

no rush to raise interest rates. Oil climbed and U.S. stock volatility

hovered near a two-year low, while a similar gauge for Treasuries has

tumbled from its June peak.

Market sentiment has seesawed in recent weeks as traders look for

clues on how aggressive the Fed will be in its approach to tightening,

while awaiting a speech from Chair Janet Yellen on Friday. The set of

mixed economic data is dimming the outlook for the U.S. to diverge

from increased monetary stimulus in Europe and Asia.

The Stoxx Europe 600 Index gained 0.9 percent to 343.6 at the close

of trading. BHP Billiton Ltd. and Anglo American Plc led miners to the

best performance of the 19 industry groups on the equity gauge as iron

ore in China jumped to a two-week high.

The Stoxx 600 is up 13 percent from its February low, although it is still

down 6.1 percent this year.

Miners Lead Europe Higher; U.S. Volatility Remains Low

YESTERDAY IN THE INTERNATIONAL MARKETS Global Ticker Daily Change

S&P 500 +0.20%

Dow Jones +0.10%

NASDAQ +0.30%

STOXX 600 +0.93%

FTSE 100 +0.59%

DAX30 +0.94%

Crude Oil +1.46%

Gold +0.20%

The ASX rebounded yesterday buoyed by Australia's banks while other

companies experienced heavy volatility following the release of

earnings announcements. BHP Billiton (BHP) climbed as well while Rio

Tinto (RIO) eased 0.3 per cent.

The S&P/ASX 200 rose 0.7 per cent or 39 points to be last quoted at

5,553.8 points. The All Ordinaries index rose 35 points to finish at

5,647.1 points. Small-mid cap shares underperformed yesterday.

Health Care was the strongest sector rising 1 per cent, followed by

Financials and Telecommunications. The Energy sector was the only

sector to decline after crude oil prices retreated overnight.

Investor were disappointed with Monadelphous Group’s (MND) result,

sending the shares 17.8 per cent lower. Bradken fell over 20 per cent

during intraday trade, but recovered most of the losses to finish only

1.8 per cent lower. Greencross (GXL) fell initially but managed to finish

the session 1.5 per cent higher after announcing a 14 per cent

increase in revenue and a 82 per cent jump in NPAT.

ASX Rebounds as Banks, BHP Gain

THE ASX YESTERDAY IN REVIEW AUS Ticker Change

ASX 200 +0.70%

ALL ORDS +0.62%

CBA +1.00%

BHP +0.62%

ANZ +1.13%

TLS +0.73%

GAP +1.27%

OZL -0.73%

HVN +0.97%

DAILY PRICE ACTIVITY AUSTRALIA

ASX200 price action yesterday

UPCOMING DIVIDENDS

Courtesy of http://www.morningstar.com.au/Stocks/UpcomingDividends

Tasty dividends & distributions

DATE CODE COMPANY ANNOUNCEMENTCODE COMPANY NAME EX DIVIDEND PAY DATE AMOUNT FRANKING %

AGL AGL Energy 24 Aug 2016 22 Sep 2016 36.00 100.00

EAX Energy Action 24 Aug 2016 21 Sep 2016 3.52 100.00

HFA HFA Holdings 24 Aug 2016 09 Sep 2016 9.43 0.00

TLS Telstra 24 Aug 2016 23 Sep 2016 15.50 100.00

BBN Baby Bunting Group 25 Aug 2016 16 Sep 2016 6.30 100.00

EVN Evolution Mining 25 Aug 2016 23 Sep 2016 2.00 0.00

HGG Henderson Group 25 Aug 2016 16 Sep 2016 5.62 0.00

JBH JB Hi-Fi 25 Aug 2016 09 Sep 2016 37.00 100.00

KOV Korvest 25 Aug 2016 09 Sep 2016 10.00 100.00

QBE QBE 25 Aug 2016 28 Sep 2016 21.00 50.00

FID Fiducian Group 26 Aug 2016 12 Sep 2016 7.00 100.00

WHATS HOT?

DATE CODE COMPANY ANNOUNCEMENT

WHATS NOT?

CHC.asx - steaming hot LAA.asx - cooling down

Wise-owl pick Charter Hall achieved 29 per

cent growth in funds under management (FUM)

to $17.5 billion during FY16 while operating

earnings climbed 26 per cent to $124.7 million.

Management raised the distribution to 26.9

cents, up 11.2 per cent compared to pcp. CHC

gained over 25 per cent YTD, outperforming the

broader stock market index. Wise-owl issued a

buy recommendation in July 2015.

LatAm Autos posted 44.7 per cent revenue

growth to $3.9 million, however the loss

widened 32 per cent to $6.6 million. Even

though the company experiences strong top

line growth, investors have been selling down

small technology businesses with high cash

burn rates. We believe that LAA has potential

but management needs to demonstrate

earnings sustainability and cost control.

ECONOMIC NEWS

What to look out for:

DATE CODE COMPANY

Australian construction

data to be published at

11:30am (AEST)

German GDP expected

to show that the

economy expanded 0.4

per cent during Q2

U.S. manufacturing and

housing data due tonight

NEWSWORTHY

This caught our attention..

DATE CODE COMPANYGreencross Lifts Profit by 82% to $34.6

Million

Management is confident that the “unique integrated petcare model

will continue to succeed” in Australia.

Greencross’s Chief Executive Officer, Martin Nicholas was pleased

with the result, stating that Greencross once again delivered strong

cash flow and margins. He commented: “We have added 21 stores

and 23 clinics, bringing the total size of the network to 376 stores

and clinics. We have been delighted with the response of our

customers to our 17 in-store vet clinics and the outstanding

performance of these in-store clinics, which are efficiently utilising

square metres to deliver incremental revenue.”

Greencross aims to become Australia’s one stop shop for all of

their pet needs by offering retail, veterinary and grooming services.

Cross referral and loyalty programs are targeted to capture

customers and encourage “cross shopping”.

Click here to read the full story…

LATEST UPDATE FROM WISE-OWL

Greencross Ltd (GXL)

CODE COMPANY ANNOUNCEMENTEarnings Update: Greencross Ltd (GXL)

Wise-owl recommended to buy Greencross Limited (GXL) on 17 August

2015 at $6.90 and we reiterated our buy advice on 14 October 2015 at

$6.50. GXL was last traded at $7.30. We recommend to hold and re-affirm

our target of $7.70.

Veterinary service provider and owner of Petbarn, Greencross Limited

(ASX:GXL) announced another strong result as net profit after tax ('NPAT')

soared 82 per cent to $34.6 million.

Revenue increased 14 per cent to $733.7 million, up from $644.5 million last

year and EBITDA jumped 8 per cent to $87.1 million. Underlying NPAT rose

10 per cent to $42.1 million.

Hold | Revenue up 14% | NPAT up 82% | Dividend up 9%

Click here to view report from July 2016

ASX:GXL

OUR VIEWS AT A GLANCE

Find below a summary of Wise-owl’s current market views

CODE COMPANY ANNOUNCEMENT

We continue to focus on small-mid cap stocks

There are individual opportunities on the ASX 200

We feel comfortable with our exposure to the gold sector

We see little upside for US stocks in the medium-term

A WISE-OWL PUBLICATION

Presented by Simon Herrmann

DATE CODE COMPANY ANNOUNCEMENT

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