U.S. stocks flat on light volume

ASX SPI Futures up 10 points

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Bonds rallied with gold, while U.S. stocks held near a record amid

signs global policy makers will keep a lid on interest rates amid uneven

economic growth. The dollar and crude oil retreated.

The S&P 500 rose less than 0.1 percent amid volumes that were 22

percent below the 30-day average. The U.S. benchmark has increased

on four of the last five days, pushing its 2016 advance to 6.7 percent

and its increase from February’s low to 19 percent.

Gains in Munich Re and carmakers pushed Germany’s DAX Index into

bull territory, and sent European shares higher for a fifth day.

The DAX rallied 2.5 percent to its highest level of the year, taking its

advance since a February low to 22 percent. The Stoxx Europe 600

Index added 0.9 percent. Munich Re climbed 5.7 percent after the

reinsurer reported quarterly net income that was more than double the

average analyst projection.

German DAX Rallies 2.5 Per Cent; U.S. Stocks Flat

YESTERDAY IN THE INTERNATIONAL MARKETS Global Ticker Daily Change

S&P 500 +0.04%

Dow Jones +0.02%

NASDAQ +0.24%

STOXX 600 +0.92%

FTSE 100 +0.62%

DAX30 +2.50%

Crude Oil -0.58%

Gold +0.40%

Financial stocks were once again the top performers on the ASX. ANZ

soared 2.9 per cent as investors cheered the bank’s quarterly trading

update.

The S&P/ASX 200 rose 15 points or 0.3 per cent to be last quoted at

5553 points. The market was buoyed by the financial sector which

gained 1 per cent, closely followed by energy shares, up 0.9 per cent

as a group. Health care, industrial and utilities shares declined.

Australia and New Zealand Banking Group (ANZ) reported a 3 per cent

decline in its quarterly cash profit. The bank stated that the revenue

environment for banking is constrained, meaning ANZ will focus on

productivity and capital efficiency disciplines.

All other major banks gained as well with National Australia Bank

(NAB) rising 2.2 per cent, followed by Westpac and Commonwealth

Bank (CBA), up 1.8 and 1.6 per cent respectively.

In other earnings results, Carsales reported a 6 per cent rise in profit

and gained 1.4 per cent. Cochlear (COH) shed 2.8 per cent after

earlier falling more than 6 per cent, even though the company reported

a 23 per cent rise in sales revenue and a 30 per cent increase in net

profit.

ASX Gains as Earnings Season Gears Up

THE ASX YESTERDAY IN REVIEW AUS Ticker Change

ASX 200 +0.27%

ALL ORDS +0.20%

CBA +1.57%

BHP +0.54%

ANZ +2.88%

RIO +1.56%

HRR -5.71%

CAR +1.37%

SDF +0.74%

DAILY PRICE ACTIVITY AUSTRALIA

ASX200 price action in the past 6 months: Small Caps outperform

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 %

AFI AFIC 09 Aug 2016 30 Aug 2016 14.00 100.00

TAH Tabcorp 10 Aug 2016 20 Sep 2016 12.00 100.00

FRI Finbar Group 11 Aug 2016 01 Sep 2016 4.00 100.00

GSIC22 TIB +1.25% 02-22 3M 11 Aug 2016 22 Aug 2016 34.00 --

GSIO20 TIB +4.00% 08-20 3M 11 Aug 2016 22 Aug 2016 164.25 --

GSIO35 TIB +2.00% 08-35 3M 11 Aug 2016 22 Aug 2016 52.98 --

GSIO40 TIB +1.25% 08-40 3M 11 Aug 2016 22 Aug 2016 31.78 --

GSIU18 TIB +1.00% 11-18 3M 11 Aug 2016 22 Aug 2016 26.18 --

MLT Milton Corporation 11 Aug 2016 02 Sep 2016 9.90 100.00

RIO Rio Tinto 11 Aug 2016 22 Sep 2016 59.13 100.00

WBCHB TR BND 3M 08-23 Q T 11 Aug 2016 22 Aug 2016 108.26 --

WHATS HOT?

DATE CODE COMPANY ANNOUNCEMENT

WHATS NOT?

RVR.asx - steaming hot AER.asx - cooling down

Following the A$8.9 million capital raising in

July, Red River Resources is fully-funded to

progress exploration activities at Liontown East.

On 28 July the company announced a major

sulphide discovery at the Liontown East target

at the Thalanga Zinc Project in Queensland.

RVR has soared 170 per cent since the

beginning of the year on the back of the

discovery.

Aeeris Ltd owns the Early Warning Network

(“EWN”), which provides intelligence and alerts

for natural and manmade hazards in Australia.

Aeeris offers speculative exposure to a

historically untested market for natural disaster

risk mitigation services. The Company’s existing

revenue profile is a promising sign, however

risks surrounding marketing and data supply

require a long dated, speculative appetite.

ECONOMIC NEWS

What to look out for:

DATE CODE COMPANY

Westpac to publish

monthly report on

consumer sentiment

Analysts believe that

Australian home loans

have risen 2.4% in June

Data on crude oil

inventories due tonight

NEWSWORTHY

This caught our attention..

DATE CODE COMPANYCarsales Posts 6 Per Cent Rise in Profit

Managing Director Greg Roebuck is pleased with the “record result”

and said that carsales’s ability to consolidate the domestic market

leading position “is testament to the strength of the carsales team”.

Furthermore, he commented on the outlook of the company: “We

are building a dynamic global business; the economies of scale that

come with this along with our world leading technology are helping

us evolve our business. Dealers and consumers have the same

high expectations in all of our markets. As we continue to transfer

our world class technology and know-how into these markets we

see improved performance.”

During the year carsales acquired 83 per cent of Chileautos, the

leading auto classified business in Chile and 65 per cent of

SoloAutos in Mexico.

Click here to read the full story…

LATEST UPDATE FROM WISE-OWL

carsales Ltd (CAR)

CODE COMPANY ANNOUNCEMENTEarnings Update: carsales Ltd (CAR)

Wise-owl recommended to buy carsales Limited (CAR) on 28 January at

$11.55. Wise-owl subscribers have received a fully-franked distribution of

17.8 cents on 15 April 2016. Carsales released financial results today and we

recommend to hold.

Carsales Limited (ASX:CAR) posted a 6 per cent rise in full year profits to

$109.3 million. Total operating revenue was $344 million, a 10 per cent

increase on the prior corresponding period, while EBITDA increased 10 per

cent to $170.3 million. The strong performance resulted in a 10 per cent lift of

the final distribution to 19.5 cents. The dividend is fully-franked and payable

on 17 October 2016 with the record date on 22 September 2016.

Growth was achieved on the back of steady performance in the domestic

market and due to carsales' international growth strategy. Dealer revenue in

the domestic business was up 10% year on year, while the Brazilian and

South Korean business delivered strong local currency revenue growth.

International revenue rose 54 per cent to $4.4 million, however still accounts

for only a fraction of group revenue.

Hold | Revenue up 10% | Profit up 6% | Dividend up 10%

ASX:CAR

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

Wise-owl.com

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