Weekly Reports | 11:41 AM
This story features REECE LIMITED, and other companies.
For more info SHARE ANALYSIS: REH
The company is included in ASX200, ASX300 and ALL-ORDS
A brief look at important company events and economic data releases next week.
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 the Australian market continued to sell off this week, down by some -2% over the last five days, the S&P500 and Nasdaq reached fresh all-time highs mid-week, as the AI trade powered technology shares higher.
-As noted by J.L. Bernstein on Friday, “The semi index has made 12 straight intraday records. Chips have added over US$3 trillion in market cap in 17 trading days, a move almost nobody in the market today has lived through. The index now sits more stretched above its 200-day moving average than at any point since the dot-com bubble. You know how that one ended.”
-Software-as-a-Service stocks moved in the opposite direction, with ServiceNow experiencing its worst trading day in a decade, effectively exposing the two sides of the AI trade, perceived winners (chips) and perceived losers, SaaS in the disruption lane.
-The ASX200 remains weighed down by a plethora of factors concerning investors. Earnings downgrades, including higher provisions for the banks, higher energy cost impacts, with examples emerging such as Reece ((REH)) lifting its plastic pipe prices by 36%, rising inflation, and hence the spectre of further RBA rate hikes, as well as global healthcare companies continuing to come unstuck.
-Cochlear’s ((COH)) earnings downgrade was brutal, with the share price falling -40% on the day and taking the ASX200 Healthcare index down over -7%, and notching up a fresh eight-year low. Ouch!
-As noted by Tony Sycamore, IG, “the market is also bracing for what will be the first inflation report to fully capture the energy shock from the Middle East conflict. Headline CPI is expected to surge to 4.8% y/y, while the trimmed mean is forecast to rise to 3.4%, putting both well above the midpoint of the RBA’s 2-3% target band.”
-The market started Friday pricing in around 19 basis points of tightening for the May Board meeting, with a cumulative 60 basis points of RBA hikes priced in for 2026, ahead of next week’s March CPI print.
-Investors found some respite in the defensive sectors, with the Consumer Staples sector up some 2.6% and Utilities up some 0.9%. Financials fell -4% post a National Australia Bank ((NAB)) and Bank of Queensland ((BOQ)) update, while Materials also fell.
-The oil and gas supply constraints in the Middle East continue, with the Strait of Hormuz shut and no peace deal yet in sight, although the news stream continues and, as the FNArena Editor likes to say, “This too shall pass”, albeit ‘when’ and ‘how’ remain unknown ahead of the Anzac Day long weekend (sorry, not for everyone!).
The ASX will be open on Monday (fore those in doubt).
The team at FNArena wishes everyone a great long weekend.
Corporate news in the week that was:
-National Australia Bank ((NAB)) flags -$706m credit impairment
-NextDC ((NXT)) upgrades utlisation outlook and FY26 capex to -$300m, shares placed in a trading halt ahead of equity raising
-Vulcan Energy ((VUL)) announced Germany’s Rhineland-Palatinate state has granted a five-year royalty exemption for lithium production through to December 31, 2030
-Axight acquires minority stake in La Trobe Financial, implying a $3bn valuation
-Anchorage Capital to acquire HMA International for $170m
-CC Capital’s move on Insignia ((IFL)) sparks speculation of a potential future AMP ((AMP)) takeover
-ACCC escalates review of Insurance Australia Group’s ((IAG)) $1.4bn RAC Insurance bid to Phase 2
-Ramsay Health Care ((RHC)) considering divestment of UK arm to refocus on Australia and New Zealand assets
-Stanmore Resources ((SMR)) may require a large equity raising to fund potential acquisition of Anglo American’s Queensland assets
-Dexus ((DXS)) acknowledges document confidentiality but disputes claims around forced Melbourne Airport share sale
-Monash IVF ((MVF)) under pressure ahead of $350m private equity bid deadline
-Future Fund spent $300k probing allegations against senior executives
-Tabcorp Holdings ((TAH)) secures approval for live betting devices in Victorian venues
-Babylon Pump & power ((BPP)) is being recapitalised via an equity issue
-CGT overhaul could anchor Labor’s budget as Chalmers weighs housing inequality and war costs
-Maurice Blackburn is investigating a potential shareholder class action against James Hardie ((JHX))
-Fletcher Building ((FBU)) approved to sell its construction unit to Vinci
-Monash IVF ((MVF)) has rejected a takeover bid from Genesis Capital and Washington H. Soul Pattinson ((SOL)), saying the offer undervalues the company
-Pinnacle Investment Management ((PNI)) approved to complete full acquisition of Pacific Asset Management
-BHP Group ((BHP)) begins review to rank unprofitable Australian coal mines
-NextDC ((NXT)) boosted capex and raised $2.2bn
-ASX ((ASX)) completed the first release of its CHESS upgrade project
-Building suppliers like Boral and Tradelink are raising prices due to rising global costs
-Yancoal Australia ((YAL)) flagged lower output and diesel supply risks increasing costs
– Ingenia Communities ((INA)) joins bidders for Peet Ltd ((PPC))
– Stanmore Resources ((SMR)) plans structured payments to support a coal acquisition bid
– National Storage REIT ((NSR)) advances a $4bn deal to support growth strategy
– Rio Tinto ((RIO)) progresses borates sale but faces challenges exiting titanium
– EQT Holdings ((EQT)) raises a record $21.7bn Asia-Pacific fund, highlighting strong investor demand
– Omega Oil and Gas ((OMA)) seeks $50m funding to advance its Queensland project
– MYBOS targets a 2027 IPO as it scales operations
– Wise Specialist Emergency Services draws private equity interest
– Future Fund launches an investigation into whistleblower complaints
– Qantas Airways ((QAN)) cuts fares to counter weakening travel demand
– Corporate Travel Management ((CTD)) faces an overcharging scandal exceeding $220m
– Dexus ((DXS)) under pressure over a controversial airport stake sale plan
– Multiplex returns to profit but continues recovery from Queen’s Wharf losses
-Coronado Global Resources ((CRN)) continues to seek a buyer for its $1bn Curragh coking coal mine to pay down debt
-Malaysian used car platform, Carsome is looking at an ASX IPO
-Edible Blooms is seeking private equity backing to support growth
-Edge Early Learning is facing cash flow pressure, fuelling tension among shareholders
-Herbert Smith Freehills and Ashurst are benefiting from increased US deal activity, lifting partner promotions
-Woolworths Group ((WOW)) is defending its pricing rules as necessary to prevent supplier manipulation
-Private credit funds on the ASX are delivering fewer buybacks than expected, raising liquidity concerns
-Strong investor demand has led Omega Oil and Gas ((OMA)) to upsize its capital raising amid energy security interest
-Steel Dynamics says BlueScope Steel ((BSL)) has not re-engaged after rejecting its takeover offer, leaving the bid situation unresolved
-Morgans backs Firmus Technologies IPO and promotes related exposure to Maas Group ((MGH))
-Telstra Group ((TLS)) integrates AI into board-level decision making to manage growing data complexity
-ACCC questions whether Woolworths Group ((WOW)) altered pricing practices following regulatory scrutiny
-Gina Rinehart’s company opens its financials as part of an ongoing royalty dispute
-Westpac ((WBC)) engages Bain & Company to assist with strategy and performance improvement
-Australia’s telecom sector faces pressure after backlash over a controversial triple-zero emergency services survey
Next week’s Corporate Calendar
For a calendar of upcoming events, see FNArena’s Corporate Calendar:
https://fnarena.com/index.php/financial-news/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
CHARTS
For more info SHARE ANALYSIS: AMP - AMP LIMITED
For more info SHARE ANALYSIS: ASX - ASX LIMITED
For more info SHARE ANALYSIS: BHP - BHP GROUP LIMITED
For more info SHARE ANALYSIS: BOQ - BANK OF QUEENSLAND LIMITED
For more info SHARE ANALYSIS: BPP - BABYLON PUMP & POWER LIMITED
For more info SHARE ANALYSIS: BSL - BLUESCOPE STEEL LIMITED
For more info SHARE ANALYSIS: COH - COCHLEAR LIMITED
For more info SHARE ANALYSIS: CRN - CORONADO GLOBAL RESOURCES INC
For more info SHARE ANALYSIS: CTD - CORPORATE TRAVEL MANAGEMENT LIMITED
For more info SHARE ANALYSIS: DXS - DEXUS
For more info SHARE ANALYSIS: EQT - EQT HOLDINGS LIMITED
For more info SHARE ANALYSIS: FBU - FLETCHER BUILDING LIMITED
For more info SHARE ANALYSIS: IAG - INSURANCE AUSTRALIA GROUP LIMITED
For more info SHARE ANALYSIS: IFL - INSIGNIA FINANCIAL LIMITED
For more info SHARE ANALYSIS: INA - INGENIA COMMUNITIES GROUP
For more info SHARE ANALYSIS: JHX - JAMES HARDIE INDUSTRIES PLC
For more info SHARE ANALYSIS: MGH - MAAS GROUP HOLDINGS LIMITED
For more info SHARE ANALYSIS: MVF - MONASH IVF GROUP LIMITED
For more info SHARE ANALYSIS: NAB - NATIONAL AUSTRALIA BANK LIMITED
For more info SHARE ANALYSIS: NSR - NATIONAL STORAGE REIT
For more info SHARE ANALYSIS: NXT - NEXTDC LIMITED
For more info SHARE ANALYSIS: OMA - OMEGA OIL & GAS LIMITED
For more info SHARE ANALYSIS: PNI - PINNACLE INVESTMENT MANAGEMENT GROUP LIMITED
For more info SHARE ANALYSIS: PPC - PEET LIMITED
For more info SHARE ANALYSIS: QAN - QANTAS AIRWAYS LIMITED
For more info SHARE ANALYSIS: REH - REECE LIMITED
For more info SHARE ANALYSIS: RHC - RAMSAY HEALTH CARE LIMITED
For more info SHARE ANALYSIS: RIO - RIO TINTO LIMITED
For more info SHARE ANALYSIS: SMR - STANMORE RESOURCES LIMITED
For more info SHARE ANALYSIS: SOL - WASHINGTON H. SOUL PATTINSON AND COMPANY LIMITED
For more info SHARE ANALYSIS: TAH - TABCORP HOLDINGS LIMITED
For more info SHARE ANALYSIS: TLS - TELSTRA GROUP LIMITED
For more info SHARE ANALYSIS: VUL - VULCAN ENERGY RESOURCES LIMITED
For more info SHARE ANALYSIS: WBC - WESTPAC BANKING CORPORATION
For more info SHARE ANALYSIS: WOW - WOOLWORTHS GROUP LIMITED
For more info SHARE ANALYSIS: YAL - YANCOAL AUSTRALIA LIMITED

