STOXX600 declines 2% for the week. ASX set to open lower

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1 STOXX600 declines 2% for the week ASX set to open lower Powered by wise-owl.com

2 YESTERDAY IN THE INTERNATIONAL MARKETS Global Ticker Daily Change US and European Stocks Decline Amid Earnings Reports U.S. stocks fell, with the S&P 500 posting the worst two-day drop since February, amid lacklustre earnings and few signs of a pickup in economic growth. The S&P 500 declined 0.5 percent to 2, at 4 p.m. in New York, eking out a 0.3 percent gain for the month while losing 1.3 percent this week, the most since February. As policy makers and investors assessed the health of the world s biggest economy, a report released yesterday added to concerns that growth is struggling to gain traction. Consumer spending rose less than forecast in March, wrapping up the weakest quarter in a year for the biggest part of the U.S. economy even as incomes accelerated. Apple Inc. slumped for a seventh session a day after Carl Icahn said he cashed out his stake in the company. Amazon.com Inc. surged 9.6 percent after posting better-than-estimated results. S&P % Dow Jones -0.32% NASDAQ -0.62% STOXX % FTSE % DAX % Crude Oil -0.24% Gold +1.90% European stocks fell to a two-week low as a stronger euro and mixed earnings reports prompted investors to assess the biggest monthly advance since November. The Stoxx 600 declined 2.1 percent at the close of trading, as all 19 industry groups fell.

3 THE ASX YESTERDAY IN REVIEW AUS Ticker Change ASX Closes 0.4% Lower for the Week The Australian share market closed higher on Friday, buoyed by gains in the Energy and Materials sectors. The benchmark index ASX200 added 0.5% and closed at points on Friday. However, the gauge dropped 0.4% during the holiday shortened week. Economic Data Released Last Week: New Home Sales in the US rose 511k during March and Core Durable Goods Orders dropped 0.2%. The US GDP expanded 0.7% during the first quarter and initial jobless claims rose 257k. Australian inflation data was somewhat weaker than expected. The Australian CPI declined 0.2% during the first quarter, while the Producer Price Index (PPI) dropped 0.2% during the quarter. ASX % ALLORDS +0.49% CBA +0.05% BHP +0.53% WBC +1.24% NAB +0.67% BPF -4.00% RSG +8.33% BKY +3.64%

4 DAILY PRICE ACTIVITY AUSTRALIA ASX200 price action last week

5 UPCOMING DIVIDENDS Tasty dividends & distributions DATE CODE COMPANY ANNOUNCEMENT ASX CODE COMPANY NAME EX DIVIDEND PAY DATE AMOUNT FRANKING % MFF Magellan Flagship Fund 29 Apr May YTMCCA May May YTMLL May May YTMLLC May May IPE IPE 04 May May KNH Koon Holdings 04 May May AAI Alcoa 05 May May API Australian Pharmaceutical Industries 05 May Jun GSBI21 TB 5.75% M 05 May May HGG Henderson Group 05 May May WAT Waterco 05 May Jun TMM Tasmania Mines 11 May May Courtesy of

6 WHATS HOT? WHATS NOT? RSG.asx - steaming hot RFN.asx - cooling down DATE CODE COMPANY ANNOUNCEMENT Shares of Resolute Mining Limited rose significantly since Wise-Owl s recommendation. Gross operating cash flow was $62.4 million for the quarter ended 31 March Resolute also lowered its FY16 cost guidance further, as it now expects to incur cash cost of $915/oz. from $900/oz. Shares of REFFIND Limited plunged 18.8% on Friday despite announcing to the market that its subscription revenue rose 25% to $142k during the quarter and its end user growth across the platform increased 72%.

7 ECONOMIC NEWS What to look out for: DATE CODE COMPANY ANNOUNCEMENT AIG manufacturing data and Nab Business Confidence survey due at 9:30 am (AEST) German manufacturing data due today

8 NEWSWORTHY This caught our attention.. Gold DATERoad CODESuccessfully COMPANY Raises $56.6 Million Via ANNOUNCEMENT Placement and Institutional Entitlement Offer Gold Road Resources Limited (ASX:GOR) announced the completion of the Placement and the institutional component of its 1 for 10 accelerated non-renounceable pro-rata entitlement offer, raising $56.6 million at $0.44 per new share. The company also announced the details of the upcoming retail entitlement offer. Approximately 98.1 million shares were issued to various global institutions, raising a total of $43.1 million through the Placement. The Institutional Entitlement Offer raised approximately $13.5 million and was in strong demand amongst the existing institutional shareholders. The retail component of the entitlement offer is aimed at raising approximately $17.4 million through a 1 for 10 fully underwritten, non-renounceable pro-rata entitlement offer at $0.44 per new share. The new shares represent a 4.3% discount to the last closing price of $0.46 as at 26 April Click Here to Read the Full Story

9 LATEST UPDATE FROM WISE-OWL Adidas AG (ETR:ADS) International CODE Equities COMPANY Update: Adidas AG ANNOUNCEMENT (ETR:ADS) Wise-owl recommend to buy Adidas AG (ETR:ADS) on 5 August 2015 at Our latest advice was a hold recommendation in December This position belongs to our International Portfolio and is currently 53.6% in profit since our recommendation in August The ticker code for Adidas AG is ADS and the stock is trading on XETRA, the German electronic trading system for securities based in Frankfurt, Germany. ETR:ADS While ADS has surpassed our target, we continue to hold this position in our International Portfolio. Adidas recently announced strong sales for the first quarter of 2016 and raised its outlook for the year. Hold Last Price: Current Profit: 53.6% Click Here to View Report from Aug 2015

10 LATEST UPDATE FROM WISE-OWL Merck & Co., Inc. (NYSE:MRK) International CODE Equities: COMPANY Merck & Co., Inc. ANNOUNCEMENT (NYSE:MRK) Wise-owl recommended Merck & Co. Inc. (NYSE:MRK) on 12 May 2015 at US$60. This position belongs to our International Portfolio. Since our recommendation our subscribers have received four rounds of dividends totalling US$1.82 per share. The ticker code for Merck & Co., Inc. is MRK and the stock is trading on the New York Stock Exchange (NYSE). We continue to be attracted to Merck's quarterly dividend payment and robust financial performance. Merck's global sales are subject to foreign exchange movements, which had a slight negative impact on both revenue and earnings during However the underlying business remains robust as the company's flagship products experience solid sales momentum and recent USD weakness is expected to reduce the currency impact. NYSE:MRK Hold Price US$55.74 Total Dividends US$1.82 Profit: -4% Click Here to View Report from May 2015

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 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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