Which Qld stocks might rebound in 2019?

IT was a shocking 2018 for some of Queensland's big name stocks but there may be a silver lining ahead.

Veteran Brisbane stockbroker Charlie Green said Blue Sky Alternative Investments and Retail Food Group (RFG) were among the local companies that had experienced a horror year.

Blue Sky slumped 94.53 per cent in 2018 as it came under attack from short sellers who criticised the fund manager's model and how it promoted its own financial performance. Meanwhile RFG, owner of brands such as Donut King and Gloria Jean's Coffees, plummeted 87.85 per cent as it racked up large losses at its franchise outlets.

Bank of Queensland lost 23.74 per cent of its value on sliding profits while rail operator Aurizon slipped 13.71 per cent amid concerns about returns from its coal network.

"You would have to go back to the Global Financial Crisis to see stocks suffer such big declines," said Mr Green, of Hunter Green Institutional Broking. "There is no central narrative to explain what happened. It is just individual circumstances."

Mr Green said 2019 was likely to be a more positive year for Queensland stocks, boosted by a broader recovery in the Australian market, strengthening commodity prices and a resilient domestic economy. The ASX 200 slipped 6.9 per cent in 2018 to 5646.37 points.

"The heroes will likely include Suncorp, Aurizon and Flight Centre," said Mr Green, who expected the ASX 200 to be trading above 6000 by this time next year.

"Aurizon will be shipping hundreds of millions of tonnes of coal to the coast, Suncorp is about to carry out a capital return while Flight Centre is set to benefit from the continuing golden age of travel."

Some of the country's biggest investment banks have backed Mr Green's calls on those companies. Morgan Stanley said Flight Centre was more resilient than investors had perceived it. Half of its earnings now come from the corporate travel market, which is less susceptible to disruption than the leisure market.

Shaw & Partners said it is seeing increasing value emerging in Australian financial services shares, which have retreated as home prices have fallen. It favours regional lenders including Bank of Queensland and Suncorp.

Macquarie said that while Aurizon had lost its battle with the competition regulator over how much revenue it can make on its coal network, the outcome was better than expected.

Coal miner New Hope was one of the best performing Queensland stocks, climbing 36.4 per cent over the year as it was buoyed by rising commodity prices.

Other winners included high performance auto parts maker PWR Holdings, Technology One and Garda Diversified Property Fund, which gained 32.4 per cent, 24.19 per cent and 11.86 per cent respectively.

Pitcher Partners director of wealth management David Lane said Queensland companies that had become successful on the global stage were well supported.

"PWR Holdings continues with its dominance in global motor racing," said Mr Lane.

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