AMP Limited’s
(ASX:AMP) AMP Capital Investors Head of Investment Strategy and Chief Economist, Dr Shane Oliver says with Australian reporting season now wrapped up 53 per cent of companies exceeded expectations.
Mr Oliver has described the overall results as ‘pretty good’ and says they confirm the profit cycle has now turned up with large companies such as resources and banks playing a bigger role in driving growth.
According to AMP Capital Investors’ figures - 66 per cent of companies have delivered higher profits over the year and dividend payouts rose 14 per cent, driven by Rio Tinto Limited
(ASX:RIO), Commonwealth Bank of Australia
(ASX:CBA) and Telstra Corporation Limited
(ASX:TLS).
The positive results have been reflected in share prices with Mr Oliver reporting 56 per cent of companies saw share prices outperform the day of releasing results.
Mr OIiver says key themes include a massive turnaround for resources stocks such as BHP Billiton Limited
(ASX:BHP) and Rio Tinto Limited
(ASX:RIO), good results from the Big Four Banks, ongoing cost control, improvement from some cyclicals and strong growth in dividends.
Mr OIiver forecasts the market is on track for good earnings growth this year and the ASX 200 is on track to meet his year-end target of around 5,800.
