Next Week At A Glance – 24-28 Feb 2025

This story features COMMONWEALTH BANK OF AUSTRALIA, and other companies. For more info SHARE ANALYSIS: CBA

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:

-Earnings reporting season hit the market with gusto this week, and banks were the star under performers, taking the index down by over -6%. While Commonwealth Bank ((CBA)) made earnings look easy, National Australia Bank ((NAB)), Westpac ((WBC)), and ANZ Group ((ANZ)) were swept up in the selling over margin and bad debt concerns.

-The big miners, BHP Group ((BHP)) and Rio Tinto ((RIO)), managed weakness in core iron ore markets, with copper performing well, although management at both majors are tackling the growth versus dividend challenges. 

-The RBA delivered a mega-hawkish -25bps cut to the cash rate to 4.1%, leaving some experts questioning why after the latest labour market data the next day. The jobless rate grew to 4.1% in January as the participation rate rose to a record 67.3%, with 44k new jobs added.

-The ASX adopted a risk-off tone, with companies missing on earnings being proverbially taken out to the wood-chipping shed, such as Mineral Resources ((MIN)).

-The US Federal Reserve minutes flagged concerns over the President’s tariffs and the need for more evidence of inflation easing before rate cuts restart.

-Volatility has returned to both the domestic and US markets, even though the US major indices kissed all-time highs on Thursday. Judging by this week’s tectonic geopolitical shifts and Japanese inflation reaching a two-year high of 4% in January, investors might want to remain alert but not alarmed.

-As of February 20, the FNArena Corporate Results Monitor has logged 111 companies with the following ratios: 36.9% Beats, 31.5% In Line, and 31.5% Misses.

-The earnings report deluge continues into the last week of February, and to stay up to date on the Beats, Misses and In-Line updates and commentary, refer to the daily updated Corporate Results Monitor https://fnarena.com/index.php/reporting_season/

Have a great weekend from the FNArena Team

Corporate news in the week that was:

-AFR reports Private equity house Oaktree Capital Management is trying to buy out Star Entertainment’s ((SGR)) lenders before administrators are expected to be called in

-KKR has returned with an improved all-cash bid for Perpetual’s ((PPT)) corporate trust and wealth units, offering over $8 per share

-Macquarie Group ((MQG)) seen as potential buyer for Tyro Payments ((TYR))

-Charter Hall ((CHC)) and Hostplus will fully acquire Hotel Property Investments ((HPI)) after surpassing 90% ownership

-Westgold Resources ((WGX)) sells Lakewood Mill after $2.5bn Karora Resources merger

-Bupa is reportedly interested in operating about half of Healthscope’s hospitals as part of a takeover bid led by HMC Capital ((HMC))

-Goodman Group ((GMG)) has announced a $4bn equity capital raise to accelerate growth in its data centre operations

-Light & Wonder ((LNW)) acquires Grover Gaming assets for -$1.34bn

-Mitsui buys 40% of Rio Tinto’s ((RIO)) Rhodes Ridge

-Mosaic Brands’ ((MOZ)) collapse leaves creditors with a -$242m shortfall

-Clarity Pharmaceuticals ((CU6)) gained a third FDA fast track for its prostate cancer diagnostic

-NRW Holdings ((NWH)) has halted ASX trading pending an update on its SIMEC contract in South Australia

-US property firm CoStar purchased 7.5% stake in Domain Holdings Australia ((DHG)), launching offer for full take-over

-HMC Capital ((HMC)) is exploring a private equity-led rescue plan for struggling hospital operator Healthscope, with Ramsay Health Care ((RHC)) and St John of God Health Care emerging as potential partners

-Clive Palmer is reportedly exploring a purchase of Star Entertainment’s ((SGR)) Queensland assets, following interest from Bruce Mathieson

-Having sold Plarium, Aristocrat Leisure ((ALL)) will repay debt, launch a share buyback, and explore acquisitions

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/)

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