Next Week At A Glance 24-28 Mar 2025

This story features WOOLWORTHS GROUP LIMITED, and other companies. For more info SHARE ANALYSIS: WOW

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:

-As highlighted by Tony Sycamore at IG, “the bounce that started last Friday from oversold levels is the start of a short-covering rally/corrective bounce. It is viewed as a short-covering rally because we can’t find any compelling reason for US equity markets to undertake a more sustainable rally back to year-to-date highs in the current climate.”

-Thankfully, the Australian share market joined in the fun, rallying around 1.7% over the last five days but still down -4.5% on the month. Thursday saw the ASX200 record its best day in six weeks, up 1.16% to 7,918.90.

-A surprise fall in Australia’s employment numbers in February by -52,800, compared to expectations of a rise of 30,000. The Australian interest rate market is now pricing in -18bps of RBA rate cuts in May, with cumulative cuts of -65bps for 2025, rising from 59bps before the data.

-Ongoing geopolitical issues, particularly related to Iran and the Houthi attacks on US ships, have underpinned firmer oil prices, with the Energy sector rallying some 3% over the week.

-Consumer Staples also outperformed the index, up 3%, as investors breathed a sigh of relief on the ACCC’s supermarkets decision, which was essentially a non-event (for investors). Shares in Woolworths Group ((WOW)) and Coles Group ((COL)) rallied on the lack of adverse findings.

-The Financial and Utilities sectors also performed well, rising around 2% over the week.

-While equities rallied over the week, volatility and uncertainty remained. The gold price continues to trade over US$3,000/oz, and concerns over trade tariffs have pushed copper above US$10,000/t.

-Commentators continue to question the durability of the rally in US equities, with the April 2 reciprocal tariff announcements creating uncertainty for markets. Nike is a case in point warnings investors its expects sales to decline in the fourth quarter ending May as it faces tariffs and waning consumer confidence.

-Next week brings Australia’s February CPI reading on Wednesday, along with the US 4Q GDP and the all-important inflation reading, the PCE, on Thursday.

Have a great weekend from the FNArena Team

Corporate news in the week that was:

-Ramelius Resources ((RMS)) and Spartan Resources ((SPR)) are reported to be approaching a low-premium $4bn merger due

-Smartpay Holdings ((SMP)) has reportedly received two non-binding indicative offers after its shares fell due to the RBA’s surcharge review impact and is in talks with Tyro Payments ((TYR)) to be acquired at NZ$1 per share

-National Australia Bank ((NAB)) chief financial officer Nathan Goonan has resigned and will join Westpac ((WBC))

-Nine Entertainment Group ((NEC)) to sell ads for Warner Bros Discovery’s Max streaming service in Australia.

-South Korea’s Hanwha has launched a $180m after-market raid for a 9.9% stake at a 16% premium for Austal ((ASB)).

-Dexus Wholesale Airport Fund is raising funds to bid for a 9.7% stake in Melbourne and Launceston airports, allowing four existing investors to exit.

-Imricor Medical Systems ((IMR)) is seeking support for up to an $80m equity raising, with Morgans highlighted as the sole lead manager.

-Telix Pharmaceuticals ((TLX)) received approval for Illuccix in Brazil, including exclusive distribution.

-Findi ((FND)) launched an equity raising of $45m for capex and restructuring. Morgans, AST, and Ord Minnett are the brokers involved.

-The largest shareholder of Ora Banda Mining ((OBM)), Hawke’s Point, has sold down its 31.4% stake in a block trade.

-ASIC has started investigations into whether the review of founder Richard White’s conduct should be released and has begun interviewing the four resigned directors last week.

-Sumitomo Mitsui Banking Corporation has sold a portion of its Healthscope debt for 40c on the dollar to Deutsche Bank, which historically worked for HMC Capital’s ((HMC)) David Di Pilla.

-ACCC investigation concludes little can be done about the market dominance of Coles Group ((COL)) and Woolworths Group ((WOW))

-Bain is restarting conversations for Virgin Australia’s IPO post the 25% stake sale to Qatar Airways at a $4bn valuation.

-Nanosonics ((NAN)) received US regulatory approval for its tool designed to clean endoscopes.

-Arafura Rare Earths ((ARU)) entered into a supply deal for 100t p.a. of neodymium-praseodymium oxide with mining group Trazys for five years.

-Cleanaway Waste Management ((CWY)) is acquiring Contract Resources for -$377m.

-TPG Telecom ((TPG)) received approval for the sale of its fibre networks to Vocus Group for $5.25bn.

-NRW Holdings ((NWH)) secured a 12-month contract for $100m at Rio Tinto’s ((RIO)) seawater desalination plant

-CoStar has been advised by Nine Entertainment’s ((NEC)) bankers that the 60% stake in Domain Holdings ((DHG)) is worth $4.65 per share.

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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