What do you think of these shares

Hi Andrew,

URW and SCG are both owners of retail shopping malls. They are coming off depressed levels and will likely rally inline with a recovery in the broader property space.  They are not our ‘best picks’ for various reasons, one being 2024 will still be a challenging one from a consumer perspective, however as bond yields decline, the relative value of these names should improve.

RE CDI’s, it simply shows that most major owners of URW are going through the primary exchange (Paris) – it’s not a risk per se, more reflective of where the ownership now resides, i.e. in Europe, not Australia. In time, if this number continues to decline, they could scrap the ASX listing all together.

With regards to WBC, we are cautiously optimistic the banks, not outright bullish but if the economy holds together and rates decline i.e. the goldilocks scenario plays out then banks, as a barometer of the broader economy should do okay. One aspect we are doing more work on  is their capabilities from a tech perspective, we believe that banking will become a tech race and those that have been investing most in this space will do best, CBA being the most obvious while ANZ has outpaced WBC at the cheaper end of the sector, hence one reason for our preference over WBC.

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Scentre Group (SCG)

LAST UPDATED 16/12/2023 08:20

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Scentre Group (SCG)

LAST UPDATED 16/12/2023 08:20