Next Week At A Glance – 19 – 23 May 2025

This story features XERO LIMITED, and other companies. For more info SHARE ANALYSIS: XRO

The company is included in ASX50, ASX100, ASX200, ASX300, ALL-ORDS and ALL-TECH

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 most significant driver was improved global sentiment following a 90-day pause in US-China tariffs, which eased investor concerns about global growth and trade disruptions. This led to a positive flow-on effect for the ASX, with the S&P/ASX200 rising around 1.5% and sitting just off 52-week highs by around -3%.

-The optimism was also supported by a US-UK trade deal framework announcement, which boosted Wall Street and, by extension, the local market.

-Energy and IT stocks led gains on the ASX, up over 5% and 6%, respectively, tracking global moves in oil and technology shares as tariffs were walked back.

-The tech sector was notably boosted by Xero ((XRO)) results and ongoing buying for TechnologyOne ((TNE)), due to report next week, and WiseTech Global ((WTC)). Life360 ((360)) shares surged about 30% after beating earnings expectations, while Insignia Financial ((IFL)) was the worst performer among the top 200.

-Healthcare, energy, and telecommunications stocks posted modest gains, while utilities and consumer discretionary and staple sectors lagged.

-Aristocrat Leisure ((ALL), a major player in consumer discretionary, dropped nearly -9% after missing analyst’s expectations in first-half profits, weighing on the sector.

-Macquarie Group ((MQG)) reported a 5% rise in annual net profit with a strong second half, but its shares fell after the corporate regulator sued the company over alleged misreported short-selling transactions

-CommBank ((CBA)) reached a record high over $170 as quarterly earnings proved yet again to be resilient.  

-The RBA will deliver its cash rate decision on Tuesday afternoon next week with the market pricing in a -25bps cut with -76bps of RBA rate cuts between now and year-end, lower than the -100bps priced at the start of the week, post the latest employment data.

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

Corporate news in the week that was:

-BHP Group’s ((BHP)) Argentinian copper exposure via a 50% stake of Filo del Col and Josemaria projects in the Andes could contain more than five times the metal than originally estimated.

-Nine Entertainment ((NEC)) with its streaming service will broadcast men’s and women’s World Cup tournaments in Australia under long-term deals.

-HMC Capital ((HMC)) has sold around $1.6bn of its debt in Healthscope

-Dyno Nobel ((DNL)) has sold its fertiliser business for $375m to Ridley Corp ((RIC)).

-Helloworld Travel ((HLO)) has acquired a 5% stake in Webjet Group ((WJL)).

-Betr Entertainment ((BTT)) has started due diligence on PointsBet Holdings ((PBH)).

-Stripe has refuted speculation it is interested in Tyro Payments ((TYR)).

-Abacus Group ((ABG)) has rejected the $1.8bn takeover offer from Ki Corporation and Public Storage.

-Ampol ((AMP)) is leaving the retail electricity market to concentrate on EV charging and improved earnings.

-ASX ((ASX)) is cutting one hundred jobs due to rising costs and regulatory imposts.

-Macquarie Group ((MQG)) is urging lenders to the struggling UK’s Southern Water to write off GBP370m in debt to allow for an equity injection of GBP900m.

-Telstra Group ((TLS)) is launching Starlink-powered satellite text messages increasing competition in rural coverage with TPG Telecom ((TPG)) and Optus.

-Bruce Gordon has raised his stake in Nine Entertainment ((NEC)) to 19.98%.

-Aramco and Woodside Energy ((WDS)) have signed a non-binding deal for joint opportunities.

-Downer EDI ((DOW)) has sold 49% stake in Keolis Downer, ceasing its coverage of public sector transport contracts.

-Insurance Group Australia ((IAG)) has bought Royal Automobile Club of Western Australia for -$1.35bn

-Son of Chemist Warehouse co-founder, Damien Gance has sold $380m of his share in Sigma Healthcare ((SIG)), part of an $800m sale.

-Webjet Group ((WJL)) received a bid at 80c a share from BGH-Weiss to acquire the company with Helloworld Travel ((HLO)) buying a 5% stake just prior to the takeover announcement.

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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