Next Week At A Glance – 5-9 Aug 2024

This story features BOSS ENERGY LIMITED, and other companies. For more info SHARE ANALYSIS: BOE

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 S&P/ASX 200 index reached a new record high, closing at 8,115 points, buoyed by a rally in Wall Street and optimism around potential interest rate cuts by the Federal Reserve and other central banks. 

-The Australian share market has been influenced by significant volatility in the US tech sector. Major tech companies like Nvidia, Tesla, Meta, and Alphabet experienced double-digit declines, raising concerns about the sustainability of the AI-driven market rally. This has led to a rotation from tech stocks to value and cyclical shares, impacting investor sentiment globally, including in Australia.

-Post the June quarter CPI reading, the Australian market expectations have shifted from the probability of a future interest rate rise at the upcoming August RBA meeting to the possibility of a -25bp rate cut before year end. 

-Fed Chair Jerome Powell hinted at potential rate cuts in September, despite maintaining current rates.

-Soft economic data from the US has stoked fears of a possible recession, leading to declines in major indices like the Dow Jones, S&P 500, and Nasdaq. The US 10-year treasury yield dipped below 4% for the first time since February.This has created a ripple effect, impacting the Australian market’s outlook for the end of the week.

Corporate news in the week that was:

-Boss Energy ((BOE)) withdrew its takeover bid for Energy Resources of Australia ((ERA)) after the NT government rejected the Jabiluka mining lease renewal

-According to The Australian, IFM, Pacific Equity Partners, and TPG Capital are set to advance to the next round for Healius’s ((HLS)) Lumus Imaging unit sale

-Fletcher Building’s ((FBU)) Tradelink sale has reportedly attracted two final bidders, including secretive US billionaires

-According to the AFR, Lark Distilling ((LRK)) plans a major cash call with Barrenjoey Capital, following a -31.4% drop in its share price to 86c

-Regional airline Rex Airlines ((REX)) calls in Ernst & Young administrators

-BHP Group ((BHP)) in JV with Canada’s Lundin Mining to buy Toronto-listed explorer Filo Corp, gaining access to two South American copper projects

-Whitehaven Coal ((WHC)) about to sell a stake in its Blackwater mine to two Japanese buyers

-Pacific Equity Partners and Dutch Friesland Campina made an unsolicited offer for Fonterra’s ((FSF)) $3bn brand and ingredients business

-Newspaper journalists at Nine Entertainment ((NEC)) have accepted improved wage deal following five-day strike

-Financial platform Stake has secured its own Australian Financial Services Licence

-Brightstar Resources ((BTR)) and Alto Metals ((AME)) are merging in an all-scrip deal

-Scentre Group ((SCG)) is buying a 50% stake in Westfield West Lakes for $167.3m, at a 10% discount to its book value

-Westpac ((WBC)) is selling its retail auto loan back book

-Another capital raising by DroneShield ((DRO))

-Telix Pharmaceuticals’ ((TLX)) shares dropped after the FDA rejected its application for a renal cancer imaging agent

-Block ((SQ2)) upgraded its full-year guidance and flagged a new US$3bn share buyback

-ResMed ((RMD))’s quarterly surprised through a much better-than-forecast gross margin, but there were signs of weakness in the US market 

-Sky City’s ((SKC)) Auckland Casino will close its gambling area for five days in September following its failure to comply with requirements

-Takeover contest for Pacific Smiles ((PSQ)) is heating up (another bid)

-ACCC has approved Louis Dreyfus Company’s acquisition of Namoi Cotton ((NAM)), subject to divestments

-Sonic Healthcare ((SHL)) is raising debt in the US private placement market to refinance existing debt, repay bank loans, and extend its debt maturity profile

Next week at a glance:

-Monday August 5; NZ July CPI; Australia Judo Bank PMI; Global PMIs

-Tuesday August 6; ANZ job ads & RBA cash rate decision; Europe June retail sales; US June trade balance

-Wednesday August 7; NZ 2Q unemployment; China July trade balance

-Thursday August 8; Australia, RBA Governor Bullock speech; Japan June BoP & Current Account; US June consumer credit

-Friday August 9; China July CPI/PPI

Corporate Calendar:

-Monday August 5; nothing to report

-Tuesday August 6; Earnings reports from AGL Energy ((AGL)), Cettire ((CTT), Arcadium lithium ((LTM)); Freelancer ((FLN)) Investor briefing; Amcil ((AMH)) ex-div 3c, 100% franked

-Wednesday August 7; Pacific Smiles ((PSQ)) ex-div 7c, 100% franked

-Thursday August 8; Earnings reports from AMP ((AMP)), Charter Hall Long Wale Reit ((CLW)), Coronado Global Resources ((CRN)), Light & Wonder ((LNW)), Mirvac Group ((MGR)), Transurban ((TCL))

-Friday August 9; Earnings from Life 360 ((360)), Nick Scali ((NCK)), QBE Insurance ((QBE)), Temple & Webster ((TPW)); James Hardie Industries ((JHX)) AGM

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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