Next Week At A Glance – 28 Oct -1 Nov 2024

This story features NEWMONT CORPORATION REGISTERED, and other companies. For more info SHARE ANALYSIS: NEM

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

-With the US election less than two-weeks away, the day after Melbourne Cup and the RBA meeting, the mighty US bond market flexed its muscles this week with a selloff in treasuries and rising yields. As usual it is the rate of change, not the absolute level (yet) which rattles equity markets. Where US stocks go, so go Australian shares.

For the week, the ASX200 kept losses limited to less than -1%.

-The rotation out of interest rate sensitive sectors pushed the industrial, consumer discretionary, healthcare and real estate sectors into negative territory in favour of the more defensive consumer staples and communication services sectors, 

-Materials, energy, financials and utilities trod water while gold stocks, excluding Newmont ((NEM)) which reported a big earnings miss, continued to curry investor favour with a record gold price.

-It is AGM season with trading updates and quarterly reports galore, a mini earnings season no less, and all is not firing in results world. Brambles ((BXB)), Metcash ((MTS)), Reece (REH)), Fortescue ((FMG)), to name a few, disappointed the market. Maybe economic growth is not as strong as economists would have you believe.

-Next week is the quarterly 3Q CPI on Wednesday, no doubt the doves and the hawks will battle it for where to next for the RBA’s Nov 5 meeting. The US has the all-important Personal Consumption Expenditure indicator which the Federal Reserve watches closely for inflation on Thursday with Jolts, ADP and nonfarm payrolls over the week. Plenty to keep the bond markets busy.

-Last week FNArena suggested investors tighten their seat belts for turbulence. Given the multiple known unknowns around the outcome of the US election, markets might remain skittish. Big Tech is also reporting next week. 

-Speaking of technology, CEO and founder of WiseTech Global stepped down from the board and as CEO for a consulting role. For now, the market seems happy with the result. Mineral Resources shareholders  haven’t been so fortunate with ASIC allegations leading to share price weakness and a swathe of broker target price downgrades.

Have a great weekend, from your FNArena Team!

Corporate news in the week that was:

-Mineral Resources’ ((MIN)) Chris Ellison admits offshore tax evasion scheme after self-reporting millions to ATO for lenient penalty

-Bloomberg reports Asia gears up for its biggest IPO wave since 2022, possibly raising US$8.3bn across 20 listings as markets prepare for the US election

-Telix Pharmaceuticals ((TLX)) files to list on Nasdaq

-Cuscal sets IPO pricing at $2.50 per share to raise $338m, valuing the company at $479.1m

-BHP Group ((BHP)) and Vale finalised a deal with Brazilian authorities to provide a multibillion dollar settlement for one of the country’s worst mining disasters

-Qantas Airways ((QAN)) hit with over -$100m payout after unlawful sacking of 1,700 workers

-Auckland Council considering selling its NZ$1.1bn stake in Auckland Airport ((AIA))

-Coles Group ((COL)) and Woolworths ((WOW)) appeared in the Federal Court in Melbourne for a hearing of the ACCC’s lawsuit over accusations of misleading discount pricing strategies

-Hotel Property Investments ((HPI)) directors urge shareholders to reject a takeover offer, stating it undervalues the company and lacks sufficient premium

-The Pharmacy Guild urges rejection of the $8.8bn Sigma Healthcare ((SIG)) and Chemist Warehouse merger, arguing it would dominate the sector and that concessions are merely tokenistic

-Harmony Gold Mining is interested in acquiring the $2bn Ravenswood Gold Mine

-Nine Entertainment ((NEC)) may seek to bring Domain Group ((DHG)) in-house

-Ventia Services ((VNT)) extended its $125m cleaning contract with NSW Public Works through 2025

-Crypto hedge fund managers JellyC and Trovio Asset Management have merged as part of an effort to attract allocations from institutional investors such as pension funds

-Mineral Resources ((MIN)) remains scandals-plagued with latest media report stating board members Chris Ellison and Tim Roberts allegedly bought discounted heavy machinery from the company for their New Zealand estate

-CBA ((CBA)) and Westpac ((WBC)) split from NAB ((NAB)), ANZ Bank ((ANZ)) and lobby group to back strict borrower rules in place, citing need to protect first time buyers from excessive debt stress

Next 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/)

Find out why FNArena subscribers like the service so much: “Your Feedback (Thank You)” – Warning this story contains unashamedly positive feedback on the service provided.

FNArena is proud about its track record and past achievements: Ten Years On

Click to view our Glossary of Financial Terms