AGMs will become mini reporting season, Macquarie says

The investment bank has nominated its top picks for an annual meeting jump – although it says stocks tend to underperform in the weeks after the shareholder vote.

With employment holding up and consumer spending not yet falling as feared, the broker predicts better-than-expected updates from retailers and travel.

Charter Hall, Treasury Wine Estates and Transurban are among Macquarie’s top picks to receive a boost during the annual meeting season which began this week.

Amid a backdrop of higher inflation and economic uncertainty, analysts at the bank say the next few weeks could become a “mini reporting season” as companies updated shareholders on first-quarter performance.

Other stock picks for the brokers include Downer, Steadfast and Transurban.

The bank expects Star Entertainment – which is fighting to keep its casino licences in Queensland and NSW – to report stronger trading at its meeting on November 22.

With employment holding up and consumer spending not yet falling as feared, the broker predicts better-than-expected updates from retailers and travel.

In those groups are Woolworths, Coles, Endeavour, Wesfarmers, Harvey Norman, JB Hi-Fi, Flight Centre, Seven West and Southern Cross Media.

Among Macquarie’s picks for a negative outcome from the AGM season are Domino’s Pizza, and property group Stockland. It was also wary about poultry supplier Ingham’s, and construction materials suppliers Boral and Sims.

Macquarie’s study of meetings since 2011 found stocks experienced increased trading, with volumes 39.9 per cent higher, on the day of their annual meeting.

Stocks tended to marginally underperform the market post meeting and, on average, caught up with the market after approximately four weeks, it found.