Embattled fund manager AMP has hit a new all-time low in Monday’s trade, as competition mounts from new entrants in the financial services industry. Highlighted in research from Morgans, platform providers such as Netwealth and HUB24 are growing their funds administration, and encroaching on incumbents such as AMP. “We expect tailwinds to persist in the medium term, including: a record level of licensee and adviser movement (with Banks exiting advice); and advice firms assessing their platform requirements given the shift in remuneration structures, technology capability and platform pricing,” analyst Scott Murdoch wrote. AMP has the most total short positions on the benchmark, equal to Pilbara Minerals and Alumina.
Ausdrill Limited (ASL):
Ausdrill shares are the best performer on the local market after the company secured a $800 million contract with a Botswana miner. Shares have jumped by 12 per cent in Monday’s trade, to as much as $1.76. The contract is for 5 years at the Zone 5 mine in Botswana from Khoemacau Copper Mining. “We are very pleased to have been awarded this significant contract in Botswana, a highly desirable country to do business in Africa. This contract award is further endorsement of our acquisition of Barminco and its strong contribution to our international growth strategy,” it said in a statement.
Automotive Holdings Group Ltd (AHG); AP Eagers Ltd (APE):
The competition watchdog has raised concerns over the $2.3 billion merger of car retailers Automotive Holdings Group and rival AP Eagers, saying it could lessen competition for new car sales in the Newcastle, Hunter Valley region. In a statement this morning, the Australian Competition and Consumer Commission said it was assessing the application for merger authorisation between the two car dealerships. “The ACCC is seeking further feedback from market participants about this proposed transaction, in particular regarding the Newcastle, Hunter Valley region,” said ACCC acting chair Delia Rickard. “In metropolitan Newcastle alone, the combined company would operate 77 per cent of dealership sites selling the ten most popular brands. “We believe that local consumers generally don’t travel beyond the Newcastle/Hunter Valley region to buy new cars, and it is difficult to find out the final price for a car without visiting a dealership.” AP Eagers, which already holds a 28.84 per cent stake in Automotive Holdings, has offere d one share for every 3.6 shares in AHG it doesn’t already own under the offer. The merged company would be Australia’s largest automotive dealership group, a title AHG already lays claim to.
Kogan.com Ltd (KGN):
Kogan.com shares have edged lower after the online retailer announced it would be adding electricity and gas supply to its expanding portfolio of consumer services. The ASX-listed firm, which has already branched out from its core retail operations into mobile communications, home internet, insurance, super and travel, says it is partnering with NZ-owned Powershop to set up Kogan Energy. “We generate some of the cleanest and greenest energy in Australia,” said Ed McManus, chief executive of Powershop owner Meridian Energy. “Together with Kogan, we believe we can make a real difference to the energy space by delivering simple, great value, energy offerings.” Kogan says it aims to make electricity and gas more affordable through “digital efficiency” when the service launches by the end of the calendar year.
Metcash Limited (MTS):
Shares in food, liquor and hardware wholesaler Metcash have dropped by 9 per cent in early trading after undershooting consensus in its full year results. Earnings from the company’s flagship food and grocery arm (which generates more than half of group earnings) fell by 3 per cent to $182.7 million, amid intense competition. Chief Jeff Adams said good progress on key initiatives in the second half had helped deliver a pleasing financial and strategic outcome for the year, but investors weren’t quite as upbeat. Reports the Australian Viva Energy Group Ltd (VEA): Viva Energy has followed rival Caltex in revising down its retail earnings expectations, citing the rising cost of oil. In a statement to the market this morning, Viva said half year earnings from its retail segment were expected between $275 million to $290m, down from guidance of $287m to $292m provided in April. The result will be approximately 8 per cent lower than first half earnings of $308m last year. As such, group underlying earnings are expected at $150m to $180m and net profit between $60m and $80m. Despite this, the Shell fuel supplier said total sales volume for the half year was expected to be up 2 per cent on the previous half to between 7050 and 7150 million litres, in line with its prospectus forecasts and that its. Viva’s update follows a similar downbeat forecast from Caltex last week - what hurt Viva shares by 8 per cent on Thursday.
Westpac Banking Corp (WBC):
Westpac has admitted its internal culture can "dilute" accountability for failings and is overhauling how it calculates executive pay in response to last year's protest vote by angry shareholders. The country's second largest bank said on Monday that it recognised it had not gone far enough with the cuts it had made to 2018 bonuses in response to a flat profit and the fallout of the financial services royal commission. More than 64 per cent of shareholders voted against Westpac's remuneration report at December's annual general meeting. Mr Maxsted said on Monday that Westpac had listened to shareholders and would provide details of a new remuneration structure - which will better acknowledge reputational issues, improve transparency and allow discretion to be applied - in November's annual report.
Zip Co Ltd (Z1P):
Zip Co and its subsidiary Zipmoney Payments are facing a hurdle with Firstmac launching proceedings in the Federal Court alleging Zip is breaching Firstmac's ZIP trademark. "Zip notes that Firstmac has commence these proceedings now, when prior to this year Firstmac had not raised any issue in connection with Zip's use of any of its trade marks," Zip tells the market this morning. Its shares last traded at $3.13. Zip says it has used 'Zip' extensively for six years, and that Firstmac stopped offering ZIP homeloans in mid-2013. It is also threatening to counter-sue. "ZIP is also concerned by recent activity by Loands.com.au Pty Ltd (which operates the loans.com.au.website, and is a subsidiary of Firstmac) in relation to home loan and debit card products being promoted by reference to "ZIP". Zip is considering what action it will take in relation to this conduct".
（Source: AIMS）
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