Global data somewhat weak

ASX set to open lower

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U.S. stocks fell, with the S&P 500 sinking to a three-week low, amid

rekindled angst over the sluggish pace of global growth and an

uninspiring flow of corporate earnings.

Weaker-than-forecast factory data today in the U.K. and China

reminded investors of the worldwide malaise that had a hand in

sending equities to their worst-ever start to a year. Commodity shares

tumbled, with energy producers falling the most in eight weeks as

crude oil retreated, while banks posted the biggest slide since April 7.

Apple Inc. snapped its longest losing streak since 1998, and Pfizer Inc.

rallied 2.7 percent on earnings that beat estimates and a boosted

outlook.

The S&P 500 declined 0.9 percent to 2,063.37 at 4 p.m. in New York,

falling for the third time in four days.

European stocks capped their worst three-day decline since February

as miners plunged and lenders fell on earnings reports. The Stoxx

Europe 600 Index slipped 1.7 percent at the close of trading, as all 19

industry groups fell.

Most International Markets Retreat Amid Earnings, Data

YESTERDAY IN THE INTERNATIONAL MARKETS Global Ticker Daily Change

S&P500 -0.87%

Dow Jones -0.78%

NASDAQ -1.13%

STOXX 600 -1.66%

FTSE100 -0.90%

DAX30 -1.97%

Crude Oil -2.55%

Gold +0.70%

The Australian share market had a positive session yesterday, after the

Reserve Bank of Australia (RBA) announced a cut of the official cash

rate of 25 bps to a record low 1.75%. Most sectors finished higher as

the market jumped following the RBA’s statement.

The benchmark index S&P/ASX 200 gained 2.1% or 110.8 points and

was last quoted at 5354 points.

Most sectors finished in the green with the exception of Energy, down

0.7% after crude oil prices declined overnight.

The Financials sector was the best performer, surging 3.1%, as all the

big four banks experienced strong gains.

Healthcare stocks were in favour yesterday as CSL Limited (CSL) rose

1.1%, Cochlear Limited (COH) added 1.2%, and Resmed Inc. (RMD)

gained 0.2%.

Materials as a whole added 0.3%, despite BHP Billiton Ltd (BHP)

declining 1.6% and Rio Tinto Ltd (RIO) shedding 0.2%.

ASX Closes at 2016 High after RBA Rate Cut

THE ASX YESTERDAY IN REVIEW AUS Ticker Change

ASX200 +2.11%

ALLORDS +1.94%

CBA +2.13%

BHP -1.63%

WBC +1.30%

NAB +2.37%

BPF -1.35%

RSG +1.00%

XTD +11.63%

DAILY PRICE ACTIVITY AUSTRALIA

ASX200 price yesterday

UPCOMING DIVIDENDS

Courtesy of http://www.morningstar.com.au/Stocks/UpcomingDividends

Tasty dividends & distributions

DATE CODE COMPANY ANNOUNCEMENTASX CODE COMPANY NAME EX DIVIDEND PAY DATE AMOUNT FRANKING %

HGG Henderson Group 05 May 2016 27 May 2016 14.76 0.00

WAT Waterco 05 May 2016 15 Jun 2016 2.00 100.00

YTMQF3 -- 06 May 2016 24 May 2016 387.50 0.00

GSIO20 TIB +4.00% 08-20 3M 11 May 2016 20 May 2016 164.10 --

TMM Tasmania Mines 11 May 2016 27 May 2016 3.00 100.00

GSBU20 TB 1.75% 11-20 6M 12 May 2016 23 May 2016 87.50 --

GSBU27 TB 2.75% 11-27 6M 12 May 2016 23 May 2016 138.00 --

GSIC22 TIB +1.25% 02-22 3M 12 May 2016 23 May 2016 33.97 --

GSIO35 TIB +2.00% 08-35 3M 12 May 2016 23 May 2016 52.93 --

GSIO40 TIB +1.25% 08-40 3M 12 May 2016 23 May 2016 31.75 --

GSIU18 TIB +1.00% 11-18 3M 12 May 2016 23 May 2016 26.16 --

TWD Tamawood 12 May 2016 02 Jun 2016 10.00 100.00

WHATS HOT?

DATE CODE COMPANY ANNOUNCEMENT

WHATS NOT?

SDF.asx - steaming hot SRF.asx - cooling down

Shares of Steadfast Group rose 22% year-to-

date. The insurance group has been witnessing

strong growth in Gross Written Premium over

the past five years. Steadfast also reported a

184% expansion in net profit, earned on the

back of a 83% rise in revenues during the 1H16

period.

Shares of Surfstitch Group Limited slumped

more than 50% yesterday after the company

announced a second profit warning, stating that

the retailer now expects its earnings to fall more

than 75% in 2016. The company is also

struggling to integrate its acquired businesses.

ECONOMIC NEWS

What to look out for:

DATE CODE COMPANY ANNOUNCEMENT

No significant economic

news for Australia

European services data

and retail sales to be

released in the evening

US nonfarm employment

data considered the most

accurate benchmark for

jobs data. Analysts expect

that 196k jobs were added

during the month

NEWSWORTHY

This caught our attention..

DATE CODE COMPANY ANNOUNCEMENTWoolworths Announces $14.9 Billion in Sales

for Third Quarter

Australian retail giant Woolworths Limited (ASX:WOW) released

its third quarter sales update for the 13-week period ended 3 April

2016. Total third quarter sales declined 0.3% to $14.9billion as

major rebuilding and reinvestments continue to weigh on sales

momentum.

The company’s Australian Food and Liquor sales rose 0.4% for

the quarter, to $10.7 billion as consumer transactions continued to

increase but were offset by lower prices and items per basket.

New Zealand supermarket sales rose 3.8% for the quarter, as

both price and service perceptions improved as Woolworths

continued to lower its price of groceries through its ‘Price Down’

program.

General Merchandise sales shrunk 4.6% to $865 million, as the

comparable sales were impacted by a disappointing customer

response to the new season ranges.

Click Here to Read the Full Story

LATEST UPDATE FROM WISE-OWL

Resolute Mining Ltd (RSG)

CODE COMPANY ANNOUNCEMENTGrowth Portfolio Update: Resolute Mining Ltd

(RSG) - Hold

ASX:RSG

Wise-owl recommend to buy Resolute Mining Limited (ASX:RSG)

on 18 February 2015 at $0.46. This position belongs to our Growth

Portfolio and is currently 122% in profit in just under three months.

Since we initiated coverage Resolute is tracking as expected. At

the latest quarterly update, the company confirmed that it is on

track to strengthen its balance sheet, lower costs further and

achieve FY16 production guidance. The miner is directing surplus

cash flow towards early repayment of its debt.

RSG has risen substantially since Wise-owl subscribers received

our buy advice, and is now approaching our initial target of $1.10.

In line with our Growth Portfolio strategy, we recommend to move

the stop from $0.22 to $0.75, which locks in 60% profit.

Furthermore, we remove our target and recommend to hold until

further notice.

Hold | Last Price: $1.01 | Current Profit: 122% | Stop: $0.75

Click Here to View Report from Feb 2016

LATEST UPDATE FROM WISE-OWL

Teranga Gold Corporation (TGZ)

CODE COMPANY ANNOUNCEMENTGrowth Portfolio Update: Teranga Gold

(TGZ) - Hold

ASX:TGZ

Wise-owl recommended to buy Teranga Gold Corporation

(ASX:TGZ) on 05 May 2015 at $0.72. Our last recommendation

was a hold advice in April 2016. This position belongs to our

Growth Portfolio.

TGZ has risen 46% since our initial recommendation and is

approaching our initial target of $1.10. We are attracted to

Teranga's operating and financial performance, as the company

recently announced an upbeat quarterly update with record high

mill throughput, generating 70,727 ounces of gold. We recommend

to move the stop from $0.52 to $0.85, and thus locking in 18%

profit. We remove our target as we maintain our hold advice.

Teranga Gold Corporation ("Teranga", "the Company") is a

Canadian company focused on gold mining in Africa.

Hold | Last Price: $1.05 | Current Profit: 46% | Stop: $0.85

Click Here to View Report from May 2015

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

A WISE-OWL PUBLICATION

Presented by Simon Herrmann

DATE CODE COMPANY ANNOUNCEMENT

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DATE CODE COMPANY ANNOUNCEMENTDISCLAIMER

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