Australian Financial Sector
The financial system of Australia remains strong and its ability to resist shocks continues to improve. The financial service sector of Australia is the major contributor to the national economy. The sector contributed approximately $140 billion to GDP over the last year period and acted as a major driver for economic growth. The financial sector employs around 450,000 people and would remain to be the main sector of the economy in the future. Also, the Australian financial sector has always been the investors number one choice, since the sector is sophisticated, competitive and profitable.
S&P / ASX 200 Financial sector price movement
On 22 November 2019, the S&P/ASX 200 Financials (Sector) was trading at 6,021.6 points, with a dip of 0.2 per cent (at AEST 3:25 PM).
Below discussed are five companies from the financial sector, let us have a look at their stock performance on the ASX and recent updates.
Magellan Financial Group Limited (ASX: MFG)
Magellan Financial Group Limited, founded in 2006, is a fund managing company. MFG helps to generate generous returns for their clients by investing their money into global listed infrastructure and global equities.
Calendar for the Major Events of 2020
On 14 November 2019, the company has announced the key dates for 2020.
- The company will release its half-yearly results on 13 February 2020.
- The Payment date and Ex-date of the interim dividend to be released on 18 and 27 February 2020.
- The full-year results for FY2020 year ended 30 June 2020 will be released on 12 August 2020.
- FY 2020 Annual General Meeting of the company will be held on 22 October 2020.
To know more about company’s fund management click here
Change in Director’s Interest
On 14 November 2019, the company announced the change in one of its directors, Brett Peter Cairns interest, with 103,092 ordinary shares acquired in MFG at a value of $48.50 per ordinary share. The number of securities held by him after change was 1,137,615 ordinary shares, 86,277 units in Magellan Global Trust (ASX: MGG), 43,718 units in (ASX: MGE), 10,881 units in (ASX: MHG) and 166,670 units in (ASX: MHH).
On 22 November 2019, MFG stock was trading at $49.215, with a rise of 2.531 per cent (at AEST 3:17 PM). The company has ~182.28 million shares outstanding, and a market cap of $8.75 billion. The 52-week high and low value of the stock was at $62.600 and $22.550, respectively, at the time of writing the report.
QBE Insurance Group Limited (ASX: QBE)
QBE Insurance Group Limited, headquartered in Sydney, Australia is an ASX listed company with more than 12,000 people employed in 31+ nations. The company provides commercial, personal and speciality products and risk management solutions to its consumers.
Recently, on 20 November 2019, QBE announced the cancellation of 1,036,142 QBE shares as part of the on-market share buy-back, in line with ASX Listing Rule 3.8A.
Key Financial dates for 2020
- The company will release full-year results for FY 2019 and dividend announcement on 17 February 2020.
- The final dividend for FY 2019 will be paid on 9 April 2020.
- The half-year results and dividend announcement for FY2020 will be released on 13 August 2020.
- On 6 March QBE would declare the record date for 2019 final dividend.
The company’s half-yearly result for FY 2019 can be viewed here
On 22 November 2019, QBE stock was trading at $12.180, with a rise of 0.164 per cent (at AEST 3:14 PM). The company has ~1.31 billion shares outstanding, and a market cap of $15.93 billion. The 52-week high and low value of the stock was at $13.160 and $9.500, respectively, at the time of writing the report.
ASX Limited (ASX:ASX)
ASX Limited is one of the leading financial market exchanges worldwide. ASX operates as the universally appealing liquid financial markets and is counted as a top 10 global securities exchanges by value with a total market cap of approximately $2 trillion.
Monthly Activity Report for October 2019
On 6 November 2019, ASX reported the monthly activity report for the month of October, a few highlights from the report are as follows:
- The average daily number of trades was 19% higher than the previous corresponding period (pcp).
- Expected future volatility in October was an average of 13.6 against 13.1 in September.
The ASX announced a final dividend of 114.3 cents per share (cps), with an increase of 4.8%, bringing total ordinary dividends (interim and final) for FY19 period to 228.7 cps, up by 5.7% on pcp. The dividend declared by the company is fully franked, and it mentioned that 90 per cent of the underlying profit were being paid in dividends.
On 22 November 2019, ASX stock was trading at $80.615, with a rise of 0.882 per cent (at AEST 2:46 PM). The company has ~193.6 million shares outstanding, and a market cap of $15.47 billion. The 52-week high and low value of the stock was at $88.316 and $56.750, respectively, at the time of writing the report.
Medibank Private Limited (ASX: MPL)
Medibank Private Limited is a leading private health insurer. The company employs more than 4150 people and provide complementary health services throughout Australia.
Results of Annual General Meeting
On 14 November 2019, the company has declared the results of Annual General Meeting. Below mentioned resolutions were passed during the meeting:
- Resolution 1. David Grahame Fagan was re-elected as a director
- Resolution 2. Linda Bardo Nicholls AO was re-elected as a director
- Resolution 3. Acceptance of the remuneration report
- Resolution 4. Grant of performance rights to the Chief Executive Officer
Update on FY 2020 Outlook
On 6 November 2019, MPL provided additional information regarding its full-year 2020 outlook. The claims received by the company were higher than expected. Medibank has $21 mn as per provision via the 30 June 2019 claims reserve. It shows that the underlying claims growth/policy was 2.4 percent in financial year 2019 period against 2.0 percent noted during the full year period. These higher claims have been propelled, by numerous reasons, and majorly by increased hospital payments. The company expects management expenses to be around $545 million for FY20 period.
The company FY 2019 results can been read here
On 22 November 2019, MPL stock was trading at $3.115, with a rise of 0.161 per cent (at AEST 2:44 PM). The company has ~2.75 billion shares outstanding, and a market cap of $8.56 billion. The 52-week high and low value of the stock was at $3.654 and $2.274, respectively, at the time of writing the report.
Janus Henderson Group plc (ASX: JHG)
Janus Henderson Group plc is an active asset manager. The company employs more than 2,000 employees globally and has 28 offices located all over the world.
On 13 November 2019, the company announced that it has completed its on-market share buyback programme. Under the programme, the Company has bought back and cancelled 9,437,071 of its ordinary shares of 1.50 US dollars each (Shares), of which 2,330,470 were CHESS Depository Interests (CDIs) which have been converted into Shares and cancelled. Janus Henderson has expended a total amount of US$199.9 million under the Buyback, of which A$71.7 million (or US$49.5 million) was expended on buying CDIs.
On 22 November 2019, JHG stock was trading at $36.810, with a rise of 0.19 per cent (at AEST 2:45 PM). The 52-week high and low value of the stock was at $26.110 and $37.030, respectively, at the time of writing the report.