Severfield Share Discussion Threads

[adrian j boris] 30/6/2018 17:13

1.1570 CHF

[grupo guitarlumber] 28/6/2018 13:40

IMF demands Switzerland link payouts to longevity, interest rates

28 June 2018By Barbara Ottawa

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Switzerland

Switzerland should link pensioner incomes to long-term market interest rates, according to the International Monetary Fund (IMF).

In its latest assessment of the Swiss financial system, the IMF said the ‘guaranteed conversion rate’ – which determines how much of a retiree’s second-pillar pension savings can be paid out each year – should be more flexible to account for rising life expectancy.

The current minimum conversion rate is set at 6.8%, and a proposal to reduce this to 6% was rejected by Swiss voters last year as part of a referendum on wider pension reforms.

“Adjustment of the pension system parameters would support the sustainability of the social safety net,” the IMF said, adding that “population aging makes pension system reform essential”.

The conversion rate should be linked to “the market yield on a long-term sovereign bond and life expectancy at retirement”, the organisation stated.

However, Swiss pension professionals criticised the idea of a market-driven approach at this year’s Swiss Pensions Conference, organised by the CFA Society Switzerland.

“This would be the best method to do away with the second pillar as it would become completely unattractive for its members”

Gerard Fischer, Fischer Horizon

“The immediate shift to a market-valued technical interest rate [technischer Zins] would lead to a conversion rate of 3.6%, the application of generation tables and an interest rate slightly below 0%,” said Stephan Wyss, founder and managing director of research consultancy Prevanto.

Gerard Fischer, independent consultant and former CEO of Swisscanto, warned: “This would be the best method to do away with the second pillar as it would become completely unattractive for its members.”

He added: “For people, it is only important to know what their pension can buy once they retire.”

Fischer pointed out that Switzerland still had an “implicit defined benefit system” as pension promises remained unalterable once given.

“With variable pension payouts we would be able to stay closer to the constitutional mandate for the second pillar to ensure a certain income upon retirement,” he said.

Some pension funds have been forced to use active members’ money to pay out pensions, in part due to the high conversion rate.

Stephan Wyss, Prevanto

Stephan Wyss, Prevanto

Wyss said: “We started the second pillar in the ‘nominal world’ of 2% inflation and 2% real interest rate and now we are in a ‘real world’ with no inflation and thus low-to-negative interest rates.

“The pension funds are still digesting this transition and it will get better once the interest rates start to rise again.”

Jorge Serra, chief financial officer at Swiss public sector union VPOD, also called for patience, arguing that “our system has to be able to cope with such distortions for some time, and in the past we have had the opposite effect as well”.

Wyss called on all stakeholders in the debate to consider the investment impact of the conversion rate debate.

“At the moment the focus is only placed on risks and risk benchmarks, but I think this only covers part of the problem,” he said. “We should take a step back and look at the chances as well and without taking a bit more risk in investments there will no longer be any returns.”

[jadeticl3] 26/6/2018 19:59

Not a bad little company considering what we paid for the shares in the rights issue.

[owenski] 26/6/2018 17:08

Volume's high today

[cc2014] 26/6/2018 15:54

Back to the high from May 17.

I see some decent sized trades just gone through at 88. Hopefully the buyer wants more.

Looks to me like Wins have been trying to hold the price down for days now and continue to struggle to do so.

[slopsjon2] 25/6/2018 08:36

N+1 Singer maintain target price of 98p

[cc2014] 21/6/2018 12:35

Looks like buyers have won at 85 although would be good to see a close over that.

Looking forward to the next leg up to 90

[mfhmfh] 20/6/2018 12:57

Peel Hunt today reiterates buy rating and 100p target price.

[jadeticl3] 20/6/2018 08:49

These results look good. If they are well received by the market what could we hope for? 85p? Or even 90p? The Indian JV results are the best I can recall, but in overall terms are they so important?

[slopsjon2] 20/6/2018 08:46

N+1 Singer maintain their Buy

"Severfield’s share price has remained subdued in 2018, hampered by poor sentiment towards the construction industry. We believe there are clear attractions that differentiate Severfield from the wider construction peer group, including its market leading position in UK structural steel, its proven capabilities across multiple end markets, its strong balance sheet (£33.0m net cash at period end), and its attractive margin profile(delivered a further operating margin improvement to 8.3% in FY18)."

[cc2014] 20/6/2018 08:16

Wonderful. Expecting some sellers to come out at 85 and then once they've run out we move up to 90.

Increase in dividend is very much appreciated and puts a floor under the share price based on yield

[jaf111] 20/6/2018 07:58

Good call re special divi, and agree with £26m target being met early.

Fingers crossed market reacts positively!

[podgyted] 20/6/2018 07:44

Excellent set of results. Special divi of 1.7p - overall yield now over 5% . Positive outlook statement.

Wouldn't be surprised if it hit its 26m pbt target one year early.

Should challenge its highs.

[podgyted] 18/6/2018 23:52

A reasonably positive outlook statement with annual results on Wednesday should see these back above their recent high.

(I think a special dividend might be on the cards - 33m seems to be too much cash to hold - but they might have other plans.)

[cc2014] 18/6/2018 17:27

Buys now going through at 81.

It seems we could be heading back up to the recent high.

[waldron] 15/6/2018 15:37

1.1576
CHF

[cc2014] 14/6/2018 08:33

Very strange volume for first thing in the morning. 220k already traded and all on the buy side. Hopefully the seller at 79 is done now.

It will be interesting to see if the buyer is happy to move his price up during the day

[grupo] 13/6/2018 09:49

stalls below resistance cluster ahead of this week's ECB meeting
13 June 2018 By Matthew Simpson CFTe

Since teasing markets with a break above the infamous 1.20 level, EURCHF opted to plunge over 5% from the highs with some sort of vengeance. But now prices have stabilised below a cluster of resistance, we’re closely watching the cross for a potential short.

We can see on the daily chart how bearish momentum increased as it crashed from the highs. We knew range expansion would be coming after it compressed below 1.20, but its magnitude clearly pulled the rug from under bullish feet.

Still, after accelerating further away from the lower Keltner band a volatile rebound seemed the more likely. And on the eighth day beneath it, the inevitable rebound ensued and a volatile low was printed at 1.1368. Since prices have now stabilised beneath a resistance cluster we’re looking for an opportunity to trade EUR/CHF back to that low.



We’ve highlighted a decent zone of resistance between 1.1651/87 which comprises of the 1.1651 low, a 50% Fibonacci level and its 200-day average. What makes the zone more compelling is how Monday’s bearish hammer respected the 200-day average and 1.1651 low. Furthermore, the 20-day average has curled beneath the 200-day average whilst also acting as resistance. Put together, there are several technical levels above which are acting as a headwind for a bullish breakout.



Still, with tomorrow’s ECB meeting Euro crosses are vulnerable to volatility in both directions. So, we’d prefer to wait for the event to pass and for bearish momentum to return before getting involved. And it’s worth noting what happened beneath the 1.20 highs, as it serves as a warning as to what can happen if you jump the gun with a view, only to see it reverse sharply against you. As always, confirmation is key.

[grupo] 09/6/2018 07:27

EUR / CHF 1.1587 0.17%