Equities

A higher net interest margin drove a 10 per cent increase in CBA’s net profit after tax, while Wesfarmers benefited from a strong performance by Kmart Group and the chemicals division. But with much of the upside for these companies already priced in, investors should be clear about valuations before buying in.

Analysts agree Australia’s big four banks are entering 2023 from a position of strength as they pass on rising interest rates to borrowers. Headwinds remain, however, and the total return picture for shareholders looks more complex.

The US economy should experience a “benign disinflation” over the next six months as pandemic-infused snarls unravel. That should mean good things for stocks, at least in the short term.

Sage Capital remains positive on energy and travel but cautious on iron ore, while remaining focused on individual company earnings.

Treasury has released for public consultation draft legislation aimed at closing a tax loophole for off-market share buybacks, prompting renewed fears over the future of franking credits despite assurances that mum-and-dad investors will not be affected.

The long-running project has been shelved after a devastating Accenture report cited multiple areas of concern. ASIC chair Joe Longo said the ASX “failed to demonstrate appropriate control”.

Companies that win the advocacy of their clients have a remarkable ability to increase their own value according to research from the people who invented net promoter scores.

The team at Ausbil have come up with a novel way to generate income without increasing risk or removing alpha generating opportunities.

Three of the top four performing companies in the S&P/ASX 100 over the past year operate thermal coal mines, which points to remarkable structural imbalance in the market.

Recent market turbulence has brought market neutral long short strategies into primacy, with funds able to look at companies with a clear lens and avoid taking large binary positions.

Chief Strategist Michael Hartnett at Bank of America (BofA) comically titled the July fund manager survey “I’m so bearish I’m bullish”.

The National Australia Bank’s Private Wealth division this week announced a partnership with the world’s leading index fund manager, BlackRock.