DJW djerriwarrh investments limited

Djerriwarrh taking cover with more optionsJul 30 Eli...

  1. 1,004 Posts.

    Djerriwarrh taking cover with more options
    Jul 30
    Eli Greenblat


    Djerriwarrh Investments is expecting greater volatility in the banking sector and has increased its options-writing activity as it seeks to gain financially from the uncertainty swirling around companies like National Australia Bank and Commonwealth Bank.

    Djerriwarrh managing director Ross Barker said that the listed investment company's $620million Australian equities portfolio was only 12per cent covered by options and that the board was eager to lift that coverage to at least 20per cent by next year.

    Mr Barker said the board had noted an increased volatility rate of about 17per cent for NAB and as much as 16per cent for CBA, and this created opportunities for the fund to source income from writing options.

    NAB has fallen nearly 15per cent over the past month, while other leading banking and finance stocks have spluttered lower on fears of margin erosion and a rotation by investors out of the sector.

    Djerriwarrh yesterday reported a net profit of $30.1million for 2003-04, up 5.5per cent compared with last year's profit of $28.5million. Removing the effects of the special one-off dividends last year from the de-mergers of CSR and WMC, the underlying profit last financial year rose 13.6per cent.



    advertisement

    advertisement

    Djerriwarrh's total portfolio return was 21.1per cent, which exceeded the S&P/ASX 50 Leaders Accumulation Index that contains most of the active option stocks.

    The company announced a steady fully franked final dividend of 11.5¢ per share, bringing total dividends for the year to June to 21.5¢per share.

    In 2003-04, income from options trading rose $1.9million to $15.6million.

    Major acquisitions for the investment portfolio during the period included $23.7million in the CBA, $23.1million in News Corp, $17.6million in Westpac and $17.1million in the ANZ.

    Djerriwarrh sold $17.2million of Coles Myer Non-Redeemable Preference Shares, allowing it to redeploy funds to securities with an active option market.

    Shares in Djerriwarrh closed at $3.56, up 1¢, yesterday
 
Add to My Watchlist
What is My Watchlist?
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)
Last
$3.15
Change
0.000(0.00%)
Mkt cap ! $828.6M
Open High Low Value Volume
$3.16 $3.17 $3.15 $348.9K 110.6K

Buyers (Bids)

No. Vol. Price($)
4 26908 $3.15
 

Sellers (Offers)

Price($) Vol. No.
$3.18 10718 2
View Market Depth
Last trade - 16.10pm 11/08/2025 (20 minute delay) ?
DJW (ASX) Chart
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.