Stoxx Europe 600 reverses gains. ASX set to open lower

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1 Stoxx Europe 600 reverses gains ASX set to open lower Powered by wise-owl.com

2 YESTERDAY IN THE INTERNATIONAL MARKETS Global Ticker Daily Change Consumer Shares Weigh on U.S. Stocks ahead of Earnings Reports Disappointing results from fast-food chains to makers of appliances, sports apparel and home-renovation products sparked a selloff in consumer-discretionary stocks amid speculation the economy s biggest engine is sputtering. The S&P 500 Index fell 0.4 percent to 2, at 4 p.m. in New York, slipping from a two-week high. Apple Inc. declined in after-hours trading following its earnings report. More than a third of S&P 500 members are scheduled to post earnings this week, including Alphabet Inc., Coca-Cola Co., Amazon.com Inc. and Boeing Co. A two-day lull for European equities ended as Novartis AG led drugmakers down after reporting earnings. The Swiss maker of cancer treatments slid 2.8 percent, the biggest drag on the Stoxx Europe 600 Index, after its profit fell for a seventh straight quarter. The Stoxx 600 fell 0.4 percent at the close, reversing an earlier gain of as much as 0.4 percent. S&P % Dow Jones -0.30% NASDAQ -0.50% STOXX % FTSE % DAX % Crude Oil -2.32% Gold +0.89%

3 THE ASX YESTERDAY IN REVIEW AUS Ticker Change Australian Shares Rebound as Iron Ore Futures Rise The local share market rebounded on Tuesday after Monday s slide as financial, industrial and resource stocks powered higher. The big banks advanced as a group, Bega Cheese slumped after a profit warning for its infant formula and Fortescue metals surged over 6 per cent after iron ore rose overnight. The S&P/ASX 200 climbed 0.6 per cent or 34.3 points to be last quoted at 5,442.8 points. The All Ordinaries Index gained 34.2 points and finished the day at 5,532 points. All sectors gained with the exception of Consumer Staples and Energy, down 0.4 and 0.1 per cent respectively. Shares in Fortescue (FMG) jumped 6.5 per cent to $5.44 after Chinese iron ore futures rose 6 per cent overnight. Rio Tinto (RIO) advanced 2.4 per cent, while BHP Billiton (BHP) rose a modest 0.4 per cent as oil futures declined on Monday night. ASX % ALL ORDS +0.62% CBA +0.75% BHP +0.43% ANZ +0.67% WOW +0.16% CVW % DDR -1.28% OZL +2.56% Bega Cheese (BGA) plunged 17 per cent after lowering its profit guidance for its infant formula product in conjunction with Blackmores (BKL).

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 % CUP Countplus 26 Oct Nov BOQ Bank of Queensland 27 Oct Nov CBL CBL Corporation 27 Oct Nov CLV Clover Corporation 27 Oct Nov JYC Joyce Corporation 27 Oct Nov NABHA HY 3M PER Q X ST 27 Oct Nov YTMAGL Oct Nov YTMF Oct Nov AOD Aurora Dividend Income Trust 28 Oct Nov PMV Premier Investments 28 Oct Nov YTMF Oct Nov Courtesy of

6 WHATS HOT? WHATS NOT? CWY.asx - steaming hot BGA.asx - cooling down DATE CODE COMPANY ANNOUNCEMENT Cleanaway Waste Management Ltd has soared 55 per cent year-to-date and 81 per cent over the past 12 months. During FY16 sales revenue rose 5.1 per cent to $1,455.m while underlying earnings per share increased 37.9 per cent. The company generates free cashflow and reduced gearing by 18.4 per cent. Cleanaway is operating a national network of unique collection, processing, treatment and landfill assets. Bega Cheese fell 17 per cent yesterday after the company told shareholders at its annual general meeting that its partnership with Blackmores in the infant formula market is experiencing challenges. The company stated that expected sales not materialise at levels that were initially forecast. Bega says the improved outlook for dairy commodities are expected to improve financial performance in 2017.

7 ECONOMIC NEWS What to look out for: DATE CODE COMPANY Australian inflation data, also known as Consumer Price Index (CPI), is expected to show a 0.5% rise in consumer prices for the quarter U.S. housing report and data on crude oil inventories in focus tonight

8 NEWSWORTHY This caught our attention.. Ingham DATE to CODE Go Public COMPANY in $1.5 Billion IPO Australia's largest poultry producer Ingham Group Ltd is planning to list on the ASX in a $1.5 billion IPO, one of the largest floats on the ASX year-to-date. Chicken consumption has grown faster than the consumption of any other animal protein since the 1990s making it a vital part of Australian and New Zealand diets. Over the last few decades, chicken has cemented its position as the most consumed meat in Australia with per capita consumption having increased 80 per cent since Ingham Group is the largest integrated chicken producer in Australia and second largest in New Zealand with an estimated market share of 40 and 34 per cent respectively. Ingham Group seeks to list on the ASX in November in a deal that values the company at between $1.3 and $1.5 billion. With a track record of nearly 100 years and a forecasted net profit of $99 million for the financial year 2017, should investors contemplate investing in the IPO? Click here to read the full story

9 LATEST UPDATE FROM WISE-OWL ClearView Wealth (CVW) Growth Portfolio CODE COMPANY Update: ClearView Wealth (CVW) - Hold ANNOUNCEMENT Wise-owl recommended to buy ClearView Wealth Ltd (CVW) on 11 October 2016 at $1.06. The company announced today that 'Sony Life' will become a strategic shareholder in ClearView, acquiring a 14.9% stake at $1.48 per share. CVW was last traded at $1.29, a 22% premium since our recommendation earlier this month. As anticipated in our research note, majority shareholder Crescent Capital was looking to divest their holdings and following discussions over the past few months, ClearView and Sony Life reached an agreement. The transaction will be an off-market transaction and expected to settle in the following days. Sony Life is a Japanese life insurance company, fully owned by publicly listed Sony Financial Holdings Inc. and focused on term life, health nursing care and personal pension. Sony Life will be represented on the Board through a nonexecutive, non-independent director. ASX:CVW Hold Sony Life to Acquire 14.9% at $1.48 Target Under Review Click here to view report from October 2016

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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