AMP and WHK make 2007 stock picks
Major stock broking firm Ord Minnett has nominated the wealth management sector as a growth area in its 2007 stock picks released today.
The Ord Minnett Stock Picks for 2007 specifically pointed to AMP Limited and WHK Group as being stocks that held promise for investors in the coming year.
It said compulsory superannuation and recent changes to superannuation taxation pointed to strong inflows into financial products.
“Industry data indicates Australian superannuation assets have passed through $1 trillion, with estimates ranging from $1.6 trillion to $2.5 trillion by 2015,” the Ord Minnett analysis said.
It said the current financial year would see strong inflows to superannuation following last year’s Budget, and it expected the weight of superannuation money would help sustain strong profit growth for a number of financial stocks as well as companies operating in associated industries.
The analysis nominated Australian Wealth Management, AXA Asia Pacific Holdings, Challenger Financial Services and IOOF Holdings as stocks Ord Minnett liked and likely to leverage off the growth in superannuation.
However, the analysis made specific reference to AMP and WHK, stating “the AMP story remains strong, with the fundamentals set to drive the business for the foreseeable future”.
AUTHOR
Mike Taylor
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