Choppy trading in Europe. ASX SPI Futures up 28 points

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1 Choppy trading in Europe ASX SPI Futures up 28 points Powered by wise-owl.com

2 YESTERDAY IN THE INTERNATIONAL MARKETS Global Ticker Daily Change U.S. Stocks Decline as Yield Sectors Fall U.S. stocks fell as a selloff in government bonds hit yield-sensitive sectors such as real estate and utilities. Meanwhile, reports from roughly half of the S&P 500 suggest earnings may grow after five quarters of declines. Oil and precious metal prices edged higher on Thursday. The Dow Jones Industrial Average fell 30 points, or 0.2%, to The S&P 500 fell 0.3%, and the Nasdaq Composite lost 0.65%. The European STOXX 600 index was 0.01 per cent down after a choppy trading day. Major bourses and sectors were both mixed. Earnings also moved shares in Europe, where Deutsche Bank rose 0.6% after the embattled German lender posted an unexpected profit and set aside more cash to cover litigation costs. S&P % Dow Jones -0.16% NASDAQ -0.65% STOXX % FTSE % DAX % Crude Oil +0.98% Gold +0.24%

3 THE ASX YESTERDAY IN REVIEW AUS Ticker Change ASX Falls for Second Day to Close below 5,300 The Australian share market experienced another sharp selloff following Wednesday's 1.5 per cent decline as over $40bn were wiped off the market in two trading days. Health care and resource stocks slumped, while Wesfarmers continued to edge lower. The S&P/ASX 200 declined 64.3 points or 1.2 per cent to be last quoted at 5,295.5 points while the broader All Ordinaries Index fell 63.7 points to end the day at 5,378.4 points. The Small Ordinaries Index dropped 1.4 per cent. All sectors finished in the red with the exception of Information technology, up 0.3 per cent. Staples and Materials fell over 2 per cent, closely followed by Industrials and Health Care. ASX % ALL ORDS -1.17% CBA -1.62% BHP -1.44% NAB +0.47% WES -2.73% OZL +3.12% DDR -2.99% Diversified retailer Wesfarmers (WES) fell a further 2.7 per cent after announcing its first quarter sales update. National Australia Bank (NAB) rose after the lender announced 4 per cent growth in cash earnings. MND -3.27%

4 DAILY PRICE ACTIVITY AUSTRALIA ASX200 price action yesterday

5 UPCOMING DIVIDENDS Tasty dividends & distributions DATE CODE COMPANY ANNOUNCEMENT CODE COMPANY NAME EX DIVIDEND PAY DATE AMOUNT FRANKING % AOD Aurora Dividend Income Trust 28 Oct Nov PMV Premier Investments 28 Oct Nov YTMF Oct Nov FNP Freedom Foods Group 31 Oct Nov HVN Harvey Norman 31 Oct Dec YTMCCA Oct Nov YTMLL Oct Nov YTMLLC Oct Nov API Australian Pharmaceutical Industries 03 Nov Dec GLH Global Health 03 Nov Nov LGD Legend Corporation 03 Nov Dec Courtesy of

6 WHATS HOT? WHATS NOT? CGF.asx - steaming hot TRS.asx - cooling down DATE CODE COMPANY ANNOUNCEMENT Challenger gained 4.3 per cent yesterday to close at $10.94 after announcing new annuity relationships with AMP and Mitsui Sumitomo Primary Life. Challenger aims to diversify the range of products and expand the distribution network. Wise-owl recommended to buy Challenger in February 2015 at $6.90 and this position is currently part of our Dividend Portfolio. The Reject Shop has lost over 35 per cent since the beginning of the year despite touching a 52- week high earlier in August. TRS has halved in the past two months after releasing its FY16 results which showed a 5.7 per cent lift in sales revenue. During the AGM the MD flagged that patchy consumer sentiment impacts sales in Western Australia and sales growth overall.

7 ECONOMIC NEWS What to look out for: DATE CODE COMPANY Australian housing data to be released at 11am (AEDT) The Producer Price Index (PPI) measures the change in the price of goods sold by manufacturers. The PPI is a key indicator for inflation All eyes on U.S. GDP data: Analysts expects strong growth for the world s largest economy

8 NEWSWORTHY This caught our attention.. Apple, DATE Google CODE and COMPANY Microsoft Worth More than Australia s Stock Market The three largest companies by market capitalisation Apple Inc, Google parent Alphabet Inc. and Microsoft Corporation are worth more than Australia s top 500 companies. As of October 2016, the most valuable companies in the world are technology companies listed on the tech-heavy Nasdaq. The Nasdaq Stock market is the second-largest exchange in the world by market capitalisation behind the New York Stock Exchange. Despite the recent share price volatility, Apple's market cap remains well above US$600 billion. Apple's annual revenue fell for the first time in 15 years as iphone demand slowed in a saturated smart phone market. With iphone sales accounting for roughly two-thirds of revenue, Apple's flagship product is crucial to support the company's high valuation. Apple's services arm showed strong growth as revenue grew 24 per cent. Click here to read the full story

9 LATEST UPDATE FROM WISE-OWL Teranga Gold (TGZ) Growth Portfolio CODE COMPANY Update: Teranga Gold (TGZ) - Sell ANNOUNCEMENT Wise-owl recommended to buy Teranga Gold Corporation (TGZ) on 5 May 2016 at $0.72. TGZ was last traded at $1.12. We have held this position for over 12 months and we recommended to 'sell' and take profit. The total profit for this position is 55.6%. Teranga Gold has benefited from rising gold prices which has helped the company to lift revenue by 19 per cent during the first half of The company produced 123,267 ounces and is on track to meet its 2016 production and cost guidance. As at June 2016 Teranga had $70 million in cash which will help to complete the acquisition of Gryphon Minerals (GRY) as announced earlier this year. The strong balance sheet, stable production figures and the gold price appreciation have helped Teranga to trade near our initial price target of $1.10. ASX:TGZ Teranga remains fundamentally sound, however the balance of risk has changed and we are taking profit. TGZ has gained over 55% since our 'buy' advice and is now consolidating near our price target, hence we downgrade our view to 'sell' and recommend to take profit on this position. Sell & Take Profit Last Price: $1.12 Profit: 55.6%

10 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

11 A WISE-OWL PUBLICATION Presented by Simon Herrmann DATE CODE COMPANY ANNOUNCEMENT Wise-owl.com Discovering the Bluechips of Tomorrow Wise owl specializes in identifying emerging companies and financial market trends very early in their life cycle. The significant capital growth that often follows has earned wise owl a formidable reputation for discovering the bluechips of tomorrow. Investors, executives, and institutions harness this expertise through wise owl s research, and capital market services. Phone: Phone (Int.): Fax: Post: Suite 4.02 Level 4,139 Macquarie St, Sydney, info@wise-owl.com Follow us on Twitter Like us on Facebook Linkedin Add me on Linkedin:

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