Next Week At A Glance – 26-30 May 2025

This story features SERKO LIMITED, and other companies. For more info SHARE ANALYSIS: SKO

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:

-The third week of ‘sell in May and go away’ was a flat one, with the index also flat over a six-month period, even though the round trip has been wild.

-A disappointing US 20-Year Treasury auction, concerns over rising debt and deficits from Trump’s “Big Beautiful Bill,” along with higher Japanese inflation prints and bond yields, have investors globally fretting over rising bond yields and the return of bond vigilantes.

-Gold was back in favour, and the Bitcoin price set a new all-time high.

-The Australian market reacted positively post the RBA’s ‘dovish’ -25bps rate cut on Tuesday, with at least two more cuts expected in 2025, boosting shares on the day.

-Interest rate-sensitive sectors (real estate, communication services, and information technology) were the winners, all up by 1%-2%-plus in response to the RBA’s dovish tone.

-Consumer discretionary, industrials, and materials retreated, with energy the biggest loser for the week.

-Out-of-season company results continued to set the tone, with weakness in US travel and housing sectors reflected in earnings results from Serko ((SKO)) and James Hardie Industries ((JHX)), confirming the world’s largest economy continues to experience a rolling sectoral recession, as suggested by Morgan Stanley strategist Mike Wilson.

-Technology companies that surprised to the upside included TechnologyOne ((TNE)) and Catapult Group International ((CAT)).

-For a full rundown, check out this week’s latest FNArena Corporate Results Monitor: https://fnarena.com/index.php/2025/05/23/fnarena-corporate-results-monitor-23-05-2025/

-For the uranium aficionados, President Trump is expected to sign orders to boost nuclear power, with short interests scrambling again to cover the likes of Boss Energy ((BOE)) and Paladin Energy ((PDN)).

Until next week, have a great weekend from the FNArena Team.

Corporate news in the week that was:

-Brookfield is seeking to offload La Trobe Financial for $3bn, with both Japanese buyers and private equity being considered.

-Bupa is looking to become the leader in Australian mental health with 60 new clinics targeted by 2028.

-Litigation Capital Management is working on a class action against ASX ((ASX)) executives for failed execution on the Chess upgrade.

-Scolttish investment firm Baillie Gifford, a backer of Elon Musk’s Tesla, has taken built up a 5% shareholding in WiseTech Global ((WTC)).

-Helloworld Travel ((HLO)) and BGH Capital are assessing the merger of stakes in Webjet Group ((WJL)) to take the company private.

-Light & Wonder ((LNW)) is assessing more M&A activity and a primary ASX listing.

-Spark New Zealand ((SPK)) is being reviewed by two private equity firms for a possible buyout.

-AustralianSuper has re-invested in Whitehaven Coal ((WHC)), claiming the holding is consistent with its commitment to net zero emissions by 2050.

-Tabcorp Holdings ((TAH)) is assessing the sale of Max Gaming to Intralot which is worth around $610m as part of a strategic review.

-MA Financial Group ((MAF)) is nearing completion on the acquisition of IP Generation, a $2bn property investor.

-Westpac ((WBC)) is expected to announce the cut of -1500 employees, the biggest redundancy in around ten years.

-Rest Super risks losing exposure to Melbourne Airport if Dexus ((DXS)) is forced to sell its holding which it manages on behalf of clients like rest.

-FIRB has approved the Gold Fields takeover of Gold Road Resources ((GOR)) for $3.7bn.

-Cosette is re-considering the acquisition of Mayne Pharma ((MYX)) for $672m, noting changes to recent financial updates and correspondence with the US FDA.

-Catalyst Metals ((CYL)) is raising $130m in equity.

-The Virgin IPO is being planned for June.

-KKR-backed Advanta and BP (Britsh Petroleum) are reported as looking at Nufarm’s ((NUF)) $900m seed business.

-Newmont Corp ((NEM)) could possibly sell down its 20% stake stake in London listed Greatland Gold, as the company prepares for an ASX listing.

-ACCC has given the go ahead of Insurance Australia Group’s ((IAG)) RACQI takeover in WA.

-American West Metals ((AW1)) is expected to launch a $4m-$6m capital raising, part institutional, part retail at 4c per share, a discount of -21.6% to the last close.

Next week’s Corporate Calendar

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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