CBL Corporation: 1H16 – Proving Up the Model
CBL reported a solid interim result supported by strong premium growth and diligent underwriting. Can earnings continue to grow?
Western Markets End Month Lower
US, UK and European indices tracked lower as investors waited to assess US jobs data due on Friday. Asian markets closed the month with a day in the green.
US stocks decline ahead of jobs report
US stocks halted a five-month rally as oil tumbled and traders awaited jobs data to assess the outlook for interest rates in the world’s largest economy. Energy shares led losses in the S&P 500 Index as crude traded below $45 a barrel after data showed American stockpiles climbed by more than projected. At the time of writing the S&P 500 had dropped -0.6%, whilst the Dow Jones Industrial Average slid -0.5%.
Exxon Mobil fell -1.1% and was the top drag on the S&P while Chevron dropped -1.6% to have a similar effect on the Dow. Cyber security firm Palo Alto Networks slumped -9.0% after beating July-quarter estimates but also forecasting current-quarter profit and revenue below analysts' estimates. Tax services company H&R Block fell -10.6% after reporting quarterly revenue that missed analysts' expectations by a large margin. Apple bounced back +0.4% following the previous day’s European Union ruling that the maker of the iPhone owes Ireland more than US$14bn in back taxes – which Ireland rejects.
European and UK stocks fall with oil prices
European stocks fell as declines in commodity and energy producers outweighed the best month for banks in more than a year. The Stoxx Europe 600 lost -0.4%. Commerzbank and Deutsche Bank rose +3.4% and +2.5% after Manager Magazin reported Deutsche Bank considered a potential merger.
Slides in miners and energy producers dragged down UK stocks, which erased earlier gains to trim a third monthly advance. The UK’s FTSE 100 slid -0.6%. BHP Billiton and Anglo American lost -4.9% and -4.6% respectively, while Royal Dutch Shell dropped -2.1%, extending a decline as oil fell after data showed that US crude stockpiles increased. Housebuilder Berkeley Group added +3.0% on a report that UK home prices rose the most in five months in August.
Asia nudges higher and Japanese stocks finish month strong
Asian stocks crawled a little higher as banks rallied and the yen weakened amid expectations for an increase in US interest rates this year. The MSCI Asia Pacific Index upped +0.1%, while the Shanghai Composite Index added +0.4% and Japan’s Topix gained +1.3%. Display-equipment makers Nikon and Ulvac jumped +2.4% and +8.3%, respectively.
ASX 200 drags as USD strengthens
The ASX 200 slumped -0.8% as mining and energy stocks encountered hefty losses.
Crude, gold and iron ore lower
WTI crude fell -3.1% to US$44.90 while gold lost -0.3% to US$1,307.88. Iron ore nudged 34c lower to US$59/MT.
NPT Ex interim div 0.90 cps
NZX Ex interim div 3.0 cps
SKC Ex final div 10.5 cps