European markets drop amid data. ASX set to open flat

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1 European markets drop amid data ASX set to open flat Powered by wise-owl.com

2 YESTERDAY IN THE INTERNATIONAL MARKETS Global Ticker Daily Change US Equities Slip on Light Volume U.S. stocks slipped amid a retreat in crude oil, as investors awaited more clarity on the timing of the next potential rate increase from the Federal Reserve and the outlook for American inflation. The S&P 500 slipped 0.2 percent to 2, as of 4 p.m. in New York, ending near the lows of the session amid trading volumes that were 19 percent below the 30-day average. Defensive shares led declines, with utilities and phone stocks falling at least 0.6 percent. Energy producers dropped 0.3 percent amid the decline in crude futures. The Stoxx Europe 600 Index fell 0.4 percent. Data showed growth in the euro area s private sector unexpectedly slowed in May, signalling that the region won t maintain the strong pace of expansion recorded at the start of the year. S&P % Dow Jones -0.05% NASDAQ -0.08% STOXX % FTSE % DAX % Crude Oil -0.68% Gold -0.11%

3 THE ASX YESTERDAY IN REVIEW AUS Ticker Change ASX Weighed Down by Energy Shares The local share market finished in negative territory despite a strong lead from international share markets. The market declined steeply in the first hour of trading, before recovering some of the losses in the afternoon session. The benchmark index ASX 200 dropped 32.4 points or 0.61% and finished at points. All sectors except for Information Technology and Telecommunications, finished in the red. Energy was the worst performing sector, shrinking 2%, as Origin Energy (ORG) declined 3.5%, Oil Search Limited (OSH) dropped 3.2% and Woodside Petroleum Limited (WPL) shed 1.1%. Information Technology rose 0.4% as a group, as Aconex Limited (ACX) rose 5.8%, Mitula Group Limited (MUA) surged 7.4% and MYOB Group Limited (MYO) added 1.2%. ASX % ALLORDS -0.56% CBA -0.20% BHP -2.55% WBC -1.25% NAB -0.55% GOR +3.31% MLD +1.00% GXL -0.80%

4 DAILY PRICE ACTIVITY AUSTRALIA ASX200 price action yesterday

5 UPCOMING DIVIDENDS Tasty dividends & distributions DATE CODE COMPANY ANNOUNCEMENT ASX CODE COMPANY NAME EX DIVIDEND PAY DATE AMOUNT FRANKING % BENPD May Jun BTT BT Investment Mgmt 26 May Jul WPH May Jun YTMF May Jun ZEL Z Energy 26 May Jun ANZPA May Jun FSF Fonterra Fund 27 May Jun MQGPA May Jun OPG Opus Group 27 May Jun AGLHA HY 3M Q SU T 30 May Jun PTB PTB Group 30 May Jun WBCPD May Jun Courtesy of

6 WHATS HOT? WHATS NOT? PEA.asx - steaming hot AIZ.asx - cooling down DATE CODE COMPANY ANNOUNCEMENT Shares of Pacific Energy have risen over 15% since the beginning of The company recently announced that it expects to generate 4% higher EBITDA during FY16. The company attribute the earnings growth to efficient cost management and a number of previously announced contracts coming on line. Shares of Air New Zealand Limited have been declining since the beginning of the year. The company recently reported that its Group-wide yields were down 5.5% year-to-date, after removing the impact of foreign exchange.

7 ECONOMIC NEWS What to look out for: DATE CODE COMPANY ANNOUNCEMENT RBA Governor Mr. Stevens is set to speak about the monetary policy at 1:05 pm (AEST) German GDP data due at 4 pm (AEST) German economic sentiment due at 7:00 pm (AEST)

8 NEWSWORTHY This caught our attention.. Real DATEnergy CODE Progresses COMPANY Development of ANNOUNCEMENT Tamarama Project; Share Price up 9% Real Energy Corporation Limited (ASX:RLE) announced that the company has commenced its five-stage fracture stimulation program for the Tamarama-1 well, located in the Cooper Basin, Queensland. All the necessary tests of high pressure wellhead and fracture stimulation equipment have been successfully completed during the weekend. The first of the five stage fracture stimulation program is scheduled to commence today. Halliburton Australia, the main contractor for the project, will undertake operations to test the Toolachee and Patchawarra formations, both well known for holding and producing gas. Click Here to Read the Full Story

9 LATEST UPDATE FROM WISE-OWL Crusader Resources Ltd (CAS) Research CODE Note: COMPANY Crusader Resources Ltd ANNOUNCEMENT (CAS) - Initiating Coverage Crusader Resources Ltd ("Crusader", "the Company") is an Australian mining company focused on Brazil. It operates the Posse Iron Ore Mine (100%) in Minas Gerais state, cash flow from which is used to advance a portfolio of exploration to development stage gold and lithium assets. Crusader's gold assets include the Borborema Project (100%), located in Rio Grande do Norte state, and the Juruena Project (100%), located in Mato Grosso state. The Company's lithium asset is a Joint Venture (50%) incorporating the Manga Project, located in Goias state. ASX:CAS After securing a US$2million processing solution for Juruena, Crusader is rapidly advancing toward a decision to mine. Targeting a high grade, open pit / underground development, drilling is underway to convert existing resources to 'indicated' classification. Initiating Coverage Last Price: $0.125 Valuation: $0.20 Click Here to View Full Report

10 LATEST UPDATE FROM WISE-OWL DroneShield Limited (DRO) Float Watch: CODE DroneShield COMPANY Limited (DRO) - IPO ANNOUNCEMENT Report DroneShield Limited ("DroneShield", "the Company") is an Australian technology company focused on security. The Company develops hardware and software for acoustic detection of small, unmanned aerial vehicles, also known as "drones". DroneShield will acquire US based DroneShield LLC as part of the IPO. Procurement of patent protection in February 2016 allows DroneShield to accelerate sales and marketing efforts, which to date have focused on pilot testing. The Company has trialled and sold ~200 sensor units to date and there is a limited number of drone detection solutions available on the market. The company has potential to develop recurring revenue streams, by licensing its technology to end-customers. ASX:DRO IPO Offer Price: $0.20 Listing: 13th June Rating: 2/5 Click Here to View 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 has potential to outperform international markets in 2016/17 We continue to focus on small-mid cap stocks There are individual opportunities on the ASX 200 We favour the risk/reward ratio for gold miners We see value in European equities We see little upside for US stocks

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