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4 stocks and 4 IPOs to watch this week

There’s never a dull moment on the Australian Stock Exchange and this week could potentially be very lively. Here are four stocks and four initial public offerings to watch for this week.

General Property Trust (ASX: GPT) is a part of the real estate investment trust (REIT) sector and could potentially be impacted by the commencement of tapering in the U.S. Last week it made the ASX rolling 52-week lows. Over the last month it has fallen a further 8.3% and fellow REIT Stockland (ASX: SGP) has fallen 10%. Should tapering induced bond yield rises occur, its yield looks relatively less attractive and the shares may be sold down further. Additional headwinds were revelations of weak underlying market fundamentals in the most recent reporting season. General Property Trust’s saviour was deemed to be its $1.3 billion of acquisition capacity, which provided management with the ability to buy growth in the coming years. Recently the group made an offer for Commonwealth Property Office Fund (ASX: CPA).

ANZ (ASX: ANZ) bank holds its AGM this Wednesday, 18th December at 9:00am AEDT. Shareholders will be looking for an update from CEO Mike Smith on the company’s Asian strategy, which differentiates it from the other three major banks. Recent unemployment rises and softness in consumer confidence data will undoubtedly be discussed as this has the potential to increase bad debts, as both home and personal loan borrowers may fall behind in their payments. Should tapering induced bond yield rises occur, combined with other recent headwinds, the shares may be sold down further, as the yield gap between its dividends and treasury bonds may narrow.

National Australia Bank (ASX: NAB) holds its AGM this Thursday, 19th December at 9:30am AEDT. As with ANZ, the introduction of tapering, combined with other recent headwinds may result in further share price declines. Ditto for a potential increase in bad debts, as a result of sluggish employment and consumer confidence. Shareholders should also be awake to the potential for the introduction of tapering in the U.S.

Fortescue Metals Group (ASX: FMG), as Australia is intrinsically linked to China’s fortunes, the release of the Chinese purchasing managers index this week may have the greatest impact upon Fortescue. This is because of its highly geared balance sheet. A positive outlook may support the iron ore price and allow the continuation of its debt repayment. Purchasing managers are among the first to know when trading conditions change for the better or worse.

Initial public offerings

Another raft of IPOs this week includes the following:

  • Tuesday:  GDI Property Group (GDI), which owns, manages and develops real estate assets and manages real estate funds on behalf of third party investors, with an issue price of $1.00.
  • Tuesday:  Pact Group Holdings Ltd (PGH), a manufacturer of rigid plastics packaging, metals packaging and related products, with an issue price of $3.80.
  • Thursday:  National Storage REIT (NSR), which manages and operates self-storage centres, with an issue price $0.98.
  • Thursday:  Cover- More Group Ltd (CVO) – specialist and integrated travel insurance and medical assistance provider, with an issue price $2.00. 

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Motley Fool contributor Mark Woodruff does not own shares in any of the companies mentioned in this article.

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