Alcoa’s earnings disappoint market

ASX SPI Futures down 45 points

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The S&P 500 Index fell to an almost four-week low as an early batch of

disappointing corporate results damped optimism over a rebound in

earnings, while growing speculation that the Federal Reserve will raise

interest rates this year undermined demand for riskier assets. Alcoa

Inc. kicked off the earnings season by posting a worse-than-forecast

quarterly profit.

The S&P 500 slid 1.2 percent to 2,136.73 at 4 p.m. in New York, with

losses accelerating in afternoon trading.

The Dow Jones Industrial Average lost 200.38 points, or 1.1 percent, to

18,128.66. The Nasdaq 100 Index declined 1.5 percent following a

fresh record on Monday, and the CBOE Volatility Index jumped 15

percent to a three-week high.

European stocks fell for the fourth time in five days. The Stoxx Europe

600 Index slid 0.5 percent at the close, with miners and energy shares

leading declines. More than 150 Stoxx 600 companies are due to

report results this month.

S&P 500 Slips 1.2 Per Cent as Earnings Disappoint

YESTERDAY IN THE INTERNATIONAL MARKETS Global Ticker Daily Change

S&P 500 -1.24%

Dow Jones -1.09%

NASDAQ -1.54%

STOXX 600 -0.53%

FTSE 100 -0.38%

DAX30 -0.44%

Crude Oil -0.99%

Gold -0.46%

Energy and resource stocks rose yesterday helping the ASX to post a

marginal gain, after crude oil hit a one-year high overnight. West Texas

Intermediate (WTI) Crude Oil Futures surpassed US$51 per barrel on

Tuesday following news Russia supports an OPEC-led production

freeze. The Energy sector rose 2.3 per cent as a group, BHP Billiton

(BHP) and Rio Tinto added 1.7 and 2.1 per cent respectively. Health

care, financials and gold companies declined.

The benchmark index S&P/ASX 200 opened higher but lost

momentum throughout the day to close just 4.4 points or 0.1 per cent

higher to be last quoted at 5,479.8. Mid-cap stocks outperformed

slightly with the S&P/Small Ordinaries Index rising 0.3 per cent.

The number of home loans being approved for owner-occupiers is at a

15-month low after falling by 3 per cent in August. The number of loans

for owner occupied houses declined to 5,109, while the value fell 1 per

cent to $31.4 million.

Nab’s monthly business survey suggests that business confidence

holds up indicating that ‘conditions remain above average’, despite

‘losing momentum recently’. Conditions in the service and construction

industries were solid, however wholesale and retail industries

experienced ‘subdued conditions’.

Energy Shares and Miners Support ASX

THE ASX YESTERDAY IN REVIEW AUS Ticker Change

ASX 200 +0.15%

ALL ORDS +0.13%

CBA -0.01%

BHP +1.71%

ANZ -0.28%

TLS -0.39%

DDR +2.62%

MND +8.43%

MLD +5.90%

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 %

ORL OrotonGroup 11 Oct 2016 26 Oct 2016 3.00 100.00

UOS United Overseas Australia 11 Oct 2016 03 Nov 2016 0.50 0.00

KKT Konekt 12 Oct 2016 08 Nov 2016 0.50 100.00

CCV Cash Converters International 13 Oct 2016 28 Oct 2016 1.00 100.00

MFF Magellan Flagship Fund 13 Oct 2016 11 Nov 2016 1.00 100.00

NUF Nufarm 13 Oct 2016 11 Nov 2016 7.00 0.00

NZM NZME 13 Oct 2016 28 Oct 2016 2.85 0.00

SMX SMS Management and Tech 13 Oct 2016 04 Nov 2016 3.00 100.00

VELCP -- 13 Oct 2016 31 Oct 2016 0.50 100.00

VELIN -- 13 Oct 2016 31 Oct 2016 5.50 100.00

VELPA -- 13 Oct 2016 31 Oct 2016 0.35 100.00

WHATS HOT?

DATE CODE COMPANY ANNOUNCEMENT

WHATS NOT?

MLD.asx - steaming hot TGH.asx - cooling down

Wise-owl pick MACA Ltd looking strong after a

technical breakout following three months of

consolidation to hit a fresh 2-year high. We

recommended to buy MLD on 28 April at $1.08

and this position is 74 per cent in profit. We are

attracted to the company’s order book, balance

sheet and management. Financial liquidity

provides scope to grow via acquisitions.

Tegel is New Zealand's leading poultry

producer with a market share of nearly 50 per

cent across New Zealand. Since listing in May

2016 shareholders have experienced a wild

ride. Tegel’s shares peaked at $1.70 before

slumping nearly 20 per cent to be last traded at

$1.37, well below the listing price. Recent

media speculation about investors shorting the

stock adds to the uncertainty.

ECONOMIC NEWS

What to look out for:

DATE CODE COMPANY

Westpac to publish

monthly report on

consumer sentiment.

U.S. investors await

reports from OPEC and

The Federal Open Market

Committee (FOMC).

LATEST UPDATE FROM WISE-OWL

ClearView Wealth Ltd (CVW)

CODE COMPANY ANNOUNCEMENTGrowth Portfolio: ClearView Wealth Ltd (CVW)

ClearView Wealth Ltd ("ClearView Wealth", "the Company") is an Australian

financial services company focused on life insurance and wealth

management. The Life Insurance division accounts for approximately 85 per

cent of earnings, while Wealth Management makes up less than 10 per cent.

In addition ClearView has built an aligned financial adviser network primarily

comprised of self-employed advisers covering ~$8.2bn of FUMA.

ClearView Wealth offers profitable exposure to the domestic insurance

market. We are attracted to the company's revenue growth trajectory, ability

to scale up the business and balance sheet. Hurdles include maintaining

liquidity and the company's capital structure. ClearView Wealth is

experiencing growth across all key metrics, which may enable management

to reward shareholders with higher dividend distributions in the future. The

dividend has been increased for the past two consecutive years and

recognising ClearView's potential for capital growth and income, we initiate

coverage with a 'buy' recommendation.

Buy | Price: $1.06 | Target $1.48 | $0.80 | Outlook: 12m+

Click here to view full report

ASX:CVW

LATEST UPDATE FROM WISE-OWL

Neurotech International Limited (NTI)

CODE COMPANY ANNOUNCEMENTFloat Watch: Neurotech International Limited (NTI)

Neurotech International Limited ("Neurotech", "the Company") is an

Australian incorporated technology company focused on neuroscience. The

Company's primary asset is 'Mente', a wearable medical device which assist

in managing the symptoms of autism in children. Neurotech aims to sell its

product via third-party distributors and direct sales and ~350 units have been

sold to date. The company owns four granted patents for its technology in

Malta.

Neurotech offers speculative exposure to demand for medical devices in the

neurotechnology space. We are attracted to the company's product

development to date, initial distribution agreement and near-term catalysts.

Hurdles include validation of the technology, reliance on external capital and

lack of patents. Neurotech is addressing the neuro-device market which is

one of the fastest growing sectors in the medical device industry and is

expected to reach US$13.9 billion in revenue by 2019. The IPO is highly

speculative but the upcoming US clinical trial could be a near-term catalyst.

IPO | Offer Price: $0.20 | Listing: 17th October | Rating: 2.5/5

Click here to view full report

ASX:NTI

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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DATE CODE COMPANY ANNOUNCEMENTDISCLAIMER

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