European stocks add 1.3% ASX set to open flat

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1 European stocks add 1.3% ASX set to open flat Powered by wise-owl.com

2 YESTERDAY IN THE INTERNATIONAL MARKETS Global Ticker Daily Change US Stocks Close Flat; STOXX600 Edges Higher The Standard & Poor s 500 Index closed little changed as consumer shares led an advance, offsetting fresh signs of weakness in crude oil and corporate earnings after economic data in China helped ease some investor concern over a hard landing there. The Standard & Poor s 500 Index gained less than 0.1 percent to 1, at 4 p.m. in New York, after a whipsaw session that saw the gauge rise as much as 1.1 percent and fall 0.8 percent. Crude continued to fall Tuesday, with West Texas Intermediate futures losing 3.3 percent. The International Energy Agency trimmed its 2016 estimates for global oil demand amid weakness in China. European stocks rose the most in three weeks amid optimism that China will act to support its weakening economy. Europe s benchmark pared its advance as oil-and-gas producers gave up some gains amid a drop in crude. The Stoxx Europe 600 Index climbed 1.3 percent at the close of trading. S&P % Dow Jones +0.17% NASDAQ -0.26% STOXX % FTSE % DAX % Crude Oil -3.57% Gold -0.16%

3 THE ASX YESTERDAY IN REVIEW AUS Ticker Change ASX Manages to Finish in the Green The local share market managed to record its second gain for the year as the crucial Chinese GDP data met analysts expectations. The benchmark index ASX200 gained 0.9% at the close of trading yesterday. All sectors except for Utilities and Staples closed in the black. Resource stocks led the rally as iron ore prices gained for the fourth session in a row as BHP gained 0.7%, while RIO lifted 0.3%. However, Fortescue closed 1.6% lower. Retailers such as Wesfarmers and Woolworths which gained on Monday, shed 1.1% and 1.3% respectively. Transurban shares edged 2% higher after the company announced strong traffic and revenue results for December ASX % ALLORDS +0.88% CBA +1.02% BHP +0.68% WBC +1.33% NAB +1.27% SFL % BKY -1.98% BPF +6.82% The ANZ-Roy Morgan Australian Consumer Confidence report showed that consumer confidence declined 0.8%. The bank states that the drop is due to the low Australian dollar and volatile share markets.

4 DAILY PRICE ACTIVITY AUSTRALIA ASX200 price action yesterday

5 UPCOMING ANNOUNCEMENTS What s coming up? 27/01/2016 EVN EVOLUTION MINING LIMITED December 2015 Quarterly Results 28/01/2016 SFR SANDFIRE RESOURCES NL Sandfire Resources 2015 December quarterly update 28/01/2016 CCP CREDIT CORP GROUP LIMITED Credit Corp Group Half Year Results 10/02/2016 BLD BORAL LIMITED Boral Half Year Results 18/02/2016 EVN EVOLUTION MINING LIMITED Evolution Mining FY16 Half Year Financial Results 18/02/2016 MOC MORTGAGE CHOICE LIMITED Mortgage Choice Interim Financial Results Presentation 19/02/2016 DUE DUET GROUP DUET 2016 Half Year Results 19/02/2016 FXJ FAIRFAX MEDIA LIMITED Fairfax Media Half Year Results 22/02/2016 BSL BLUESCOPE STEEL LIMITED Bluescope Steel 2016 Half Year Results 24/02/2016 AWE AWE LIMITED AWE Limited Half Year Results 24/02/2016 PGH PACT GROUP HOLDINGS LTD Pact Group Holdings Half Year 2016 Results 25/02/2016 MQA MACQUARIE ATLAS ROADS GROUP Macquarie Atlas Roads Full Year Results 2016 Courtesy of

6 UPCOMING DIVIDENDS Tasty dividends & distributions ASX CODE COMPANY NAME EX DIVIDEND PAY DATE AMOUNT FRANKING % TWR Tower 18 Jan Feb CUP Countplus 19 Jan Feb YCNPA Jan Jan MHI Merchant House International 20 Jan Jan NABHA HY 3M PER Q X ST 27 Jan Feb ACL Alchemia 01 Feb Feb GSBC17 TB 6.00% M 03 Feb Feb GSIC22 TIB +1.25% M 10 Feb Feb GSIO20 TIB +4.00% M 10 Feb Feb GSIO35 TIB +2.00% M 10 Feb Feb GSIO40 TIB +1.25% M 10 Feb Feb GSIU18 TIB +1.00% M 10 Feb Feb Courtesy of

7 WHATS HOT? WHATS NOT? PSI.asx - steaming hot 3PL.asx - cooling down PSC Insurance Group recently announced that it is in the process of acquiring Australian Reliance along with its corporate insurance broking business and adviser franchise network at $31.57 million. The acquisition is expected to be completed by the end of February. PSI last traded at $1.65 and has gained 7% since the beginning of the year. Shares of online education company 3P Learning took a downturn after the company announced the resignation of its CEO, Mr. Tim Power. The media speculates that the CEO resigned due to differences in strategic vision. The company is currently going through a crucial phase as it is expands into North America.

8 ECONOMIC NEWS What to look out for: Westpac Consumer Sentiment due today at 10:30 AM (AEDT) UK set to release unemployment data for November and December at 8:30 PM (AEDT)

9 NEWSWORTHY This caught our attention.. RIO DATE Tinto CODE Releases COMPANY Solid Fourth Quarter ANNOUNCEMENT Production Results Iron ore mining giant RIO Tinto (ASX:RIO), has released strong Q4 production results, which show an increase in the production and shipment of several commodity classes. RIO states that the iron ore production for Q was at 91 million tonnes, 11% higher than the corresponding period in This was in line with a full year production of over 336 million tonnes, which was 11% higher than The operations at Pilbara contributed the most to iron ore production, with around 309 million tonnes being produced there. Q production at the Pilbara was 82 million tonnes, which was 9% than the preceding period in Read the full story here:

10 LATEST UPDATE FROM WISE-OWL Harvey Norman Holdings Ltd (HVN) CODE COMPANY Dividend Portfolio Recommendation: Harvey ANNOUNCEMENT Norman Holdings Ltd (HVN) - BUY Harvey Norman Holdings Limited (HVN) is the franchisor and operator for Harvey Norman, Domayne and Joyce Mayne retail stores in Australia, New Zealand, Slovenia, Ireland, Singapore and Malaysia. The company has 194 franchised stores in Australia and 86 companyoperated stores internationally. The stores offer a diverse range of home, electronic or outdoor appliances. The company also has investments in property, media placements activities and is a provider of consumer finance. Harvey Norman has recorded average profit growth of 20% over the last four years. While its domestic operations remain robust, overseas revenue experiences strong growth. The annual dividend is forecasted to yield ~5% with 100% franking. ASX:HVN Last Price $4.25 Target $4.95 Yield: 5% Outlook: 12 Months Click Here for the Full Report

11 OUR VIEWS AT A GLANCE Find below a summary of Wise-owl s current market views CODE COMPANY ANNOUNCEMENT The ASX 200 remains in a medium-term downtrend We continue to focus on small-mid cap stocks We remain cautious on the resource sector Bullish view for European equities There are individual opportunities on the ASX 200

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