Market Update: Understanding Broader Performance of Australian Markets

  • Nov 05, 2019 AEDT
  • Team Kalkine
Market Update: Understanding Broader Performance of Australian Markets

Performance of Australian markets is sensitive to the global stock markets as well as to the health of global economy. If the economic uncertainties increase, investors might decide to liquidate their holdings in stocks which might lead to a fall in the stock markets. In the event of economic slowdown, there is a possibility that investors might consider deploying their investable capital towards safer assets.

On 5th November 2019, S&P/ASX200 closed the trading session in green and experienced a rise of 10.2 points or 0.2% and settled at 6697.1 points. On the same day, All Ordinaries also settled the trading session in green, as there was a rise of 11.8 points or 0.2% and closed at 6811.6. We would now have a look at the stocks which closed in green on Australian Securities Exchange.

On 5th November 2019, Magellan Financial Group Limited (ASX: MFG) closed at a price of A$49.910 per share with a rise of 3.785%. On the same trading session, Pendal Group Limited (ASX: PDL) settled at a price of A$7.490 per share with a rise of 3.453%.

Previously, we had written about some stocks and the readers can have a quick glance at the same, as it could be value addition for them. Recently, we covered some notable information on DDR and SPT. The investors can have a look at the information, by clicking here.

Increase in Profitability of Funds Management Segment

Magellan Financial Group Limited (ASX: MFG) recently released the Chairman’s Address to 2019 Annual General Meeting, mentioning that the company’s net profit after tax (NPAT) rose by 78% and the figure reached $376.9 Mn. It was also stated that excluding the amortisation relating to acquisitions of Airlie Funds Management and Frontier Partners, gains in principal investments portfolio as well as costs associated with the capital raisings for funds, Magellan’s adjusted net profit after tax rose 35% and the figure amounted to $364.2 million.

The company witnessed a rise of 39% in the profitability of the Funds Management Segment, which fuelled by an increase of 31% in revenues due to a 28% increase in average funds under management from $59 Bn to $75.8 Bn and a more than doubling of performance fees to $83.6 Mn. The increase in profitability of Funds Management Segment has also been supported by positive operating leverage because of a modest increase in expenses of 4%.

Pendal Group Limited Up 3.453% on Australian Securities Exchange

Pendal Group Limited (ASX: PDL) unveiled that Pinnacle Investment Management Group Limited and its subsidiaries made change to their substantial holdings in the company on 28th October 2019. As a result, the current voting power of the substantial holder stands at 5.94% in comparison to the previous voting power of 7.40%.

In another announcement, the company updated its funds under management (or FUM) for the quarter ended 30 September 2019. As per the release, the total Pendal Group FUM stood at $100.4 Bn.

MFG Daily Technical Chart (Source: Thomson Reuters)

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