Next Week At A Glance – 7-11 Oct 2024

This story features STAR ENTERTAINMENT GROUP LIMITED, and other companies. For more info SHARE ANALYSIS: SGR

For a more comprehensive preview of next week’s events, please refer to “The Monday Report”, published each Monday morning. For all economic data release dates, ex-div dates and times and other relevant information, please refer to the FNArena Calendar.

The week that was in Australian Finance:

-China stimulus enthusiasm boosted the Australian share market to a record high on Monday making a 2.2% gain for September. Not bad for what is typically the worst month of the year.

-Materials stocks gained 11.03% over September due to the rotation out of financials as the China stimulus measures provided support for commodity prices. Iron ore prices rose over 8.5% over the last month but are down some -7.7% from a year earlier.

-Another geopolitical flash-point on Tuesday ruined the rally after Iran fired 180 ballistic missiles towards Israel, post the killing of Hezbollah leader Hassan Nasrallah the previous Friday.

-Brent oil rallied another 4% on Thursday bringing the weekly rise to 11%, after President Biden’s comments around possible Israeli retaliation on Iranian oil assets. Iran produces 3% of global crude output. 

-Star Entertainment Group ((SGR)) and Tabcorp Holdings ((TAH)) were significant detractors and Qantas Airways ((QAN)) saw a -4.04% drop following news of Qatar Airways’ plan to acquire a stake in Virgin Australia

-Some stocks bucked the trend, with Sigma Healthcare ((SIG)) surging on more details over the ACCC investigation into the proposed merger with Chemist Warehouse.

-Materials and Energy were the week’s top performing sectors. Consumer discretionary and financials the worst performing.

Corporate news in the week that was:

-Affinity Equity Partners has reportedly dropped out of the Waste Services Group bid leaving EQT Holdings ((EQT)), The Carlyle Group, Pacific Equity Partners, and BGH Capital in the running with bids due this week

-Cosmetique plans a $17.5m ASX listing to expand its 17 clinics and capitalise on Australia’s $4bn injectables market

-REA Group ((REA)) has officially given up on acquiring the UK’s Rightmove, for now

-Qatar Airways to acquire a 25% stake in Virgin Australia from Bain Capital, intensifying competition with Qantas Airways ((QAN)), pending FIRB approval

-AGL Energy ((AGL)) signs a new electricity supply deal for the Portland smelter, allowing for reduced consumption during peak demand

-Wesfarmers ((WES)) is reportedly interested in Mineral Resources’ ((MIN)) Perth Basin assets, but competition is expected from Gina Rinehart’s Hancock Prospecting and Mitsui, possibly teaming up with Beach Energy ((BPT))

-Seven West Media ((SWM)) and Network 10 are negotiating a $15m to $20m deal to acquire Southern Cross Austereo’s ((SXL)) regional TV stations

-Mesoblast ((MSB)) will reportedly raise funds via convertible notes from its largest shareholder if its drug Ryoncil is approved by the FDA

-The RBA has blacklisted Westpac ((WBC)) for 12 months over suspected briefing leak involving Michele Bullock

-The Labor government eyes gambling ad ban on streaming services, granting TV networks a key concession in upcoming reform package

-Growthpoint Properties Australia ((GOZ)) is selling its 15.1% stake in Dexus Industrial REIT for about $131.7m, offering shares at a -3.8% discount

-Accent Group ((AX1)) becomes the exclusive distributor for Lacoste and Dickies in Australia and New Zealand

-Genesis Energy ((GNE)) is acquiring a 65% stake in ChargeNet for NZ$64m

-Louis Dreyfus (LDC) secures control of Namoi Cotton ((NAM)) after rival Olam Agri pulls out with the ASX cancelling over $800,000 in trades for Namoi Cotton after failing to publish a new $150m takeover offer from Louis Dreyfus before trading began

-SPC is returning to the ASX through a reverse takeover of Original Juice Co and a dairy business acquisition

-Les Szekely to sell most of his 5.5% stake in SiteMinder ((SDR)) and retire from the board in December

-Canada has launched a national security review of Paladin Energy’s ((PDN)) $1.5bn acquisition of Fission Uranium, citing concerns over Chinese investor influence

-Origin Energy ((ORG)) halts hydrogen projects, including Hunter Valley Hydrogen Hub, due to uncertainties and costs

-HMC Capital ((HMC)) is acquiring Global Switch Australia for -$2bn, anchoring a $1bn real estate listing planned for this year

-According to The Australian, Rio Tinto ((RIO)) is rumoured to soon announce its first major lithium acquisition

-Resimac ((RMC)) acquires Westpac’s ((WBC)) auto loan portfolio

-Woodside Energy ((WDS)) is receiving multiple offers for its Driftwood LNG project

Next week at a glance

For a calendar of earnings result releases and a summary of earnings results to date, refer to FNArena’s Corporate Results Monitor (https://www.fnarena.com/index.php/reporting_season/)

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