25 June Markets at a glance

Around the grounds

• ASX higher, financials hit record high
• CPI data on tap
• AUD & NZD touch fresh peak against yen
• JPY intervention eyed

The S&P/ASX200 is marching higher as interest-rate sensitive financials climbed to touch a record high, seemingly shrugging off investor caution ahead of key domestic and US consumer price data this week.

Local CPI data for May, released tomorrow, will be closely watched by market participants after the RBA’s hawkish hold in its latest policy meeting where the Australian central bank reiterated the risk to hiking interest rates should inflation remain sticky.

Median forecasts are for the annual pace of inflation to rise to 3.8% in the month, from 3.6% in April. NAB’s base case remains slow economic growth will give the RBA enough confidence in the outlook for progress on inflation to stay on hold, but near-term risk sits with a hike.

Energy stocks are also higher tracking a rise in the price of oil on expectations of improved fuel demand.

Miners have edged higher, with shares of BHP Group (BHP) and Rio Tinto (RIO) up 0.6% and 1.2% respectively. The sub-index however is a laggard, down over 14% so far this year amid continued iron ore demand concerns from top consumer China.

In the news

Australian listed shares of Collins Foods (CKF) have surged as the Aussie KFC operator reported a jump in full year statutory net profit and an over 10% rise in revenue from continuing operations thanks to growth across all business units.

Geopolitics however are a pain point, with the company saying the ongoing conflict in the Middle East has impacted sales, particularly in the Netherlands adding significant inflationary pressures are expected to remain for the rest of the year and it expects margin pressure across the Group.

Investors will get a fully franked final dividend of 15.5 AU cents per share.

Shares are down over 20% this year as of last close.

Shares of Star Entertainment Group (SGR) have extended losses, set for a third straight session of declines after a grim full year forecast yesterday sees the company expects profit to halve from a year ago levels.

Brokers have come out in force in response to the news, Morningstar says it expects remediation and transformation costs to linger as the company focuses on regaining suitability to operate its Sydney casino.

Macquarie has cut the price target to 45 AU cents from 50 AU cents per share and slashed its EBITDA forecast by 11% and 24% for FY24 and FY25 respectively.

Stock is down nearly 8% year to date as of last close.

Qantas (QAN) shares are also in focus on news of fresh investment in its next-generation aircraft, which it says could cut costs, travel time and emissions.

Finally, Healius (HLS) shares are having a whipsaw session, recouping a near 6% drop at the start of trade as the healthcare services provided downgrades its FY24 guidance.

Stock is down nearly 10% this year as of last close.

Going global

It’s all about the FX market globally, both the Australian and New Zealand dollars have touched a fresh record peak against the yen while most other crosses lack direction.

The AUD rose as much as 106.28 against its Japanese pair, giving it a gain of over 7.5% for the quarter.

The greenback is stuck at 160 yen on the threat of a Japanese intervention. Japanese Chief Cabinet Secretary Yoshimasa Hayashi has told the market authorities are closely watching currency moves and will respond appropriately to excessive volatility.

More broadly, sterling has edged lower, while the euro has ticked higher, though is headed for a monthly loss of about 1% on the tails of EU political turmoil.

Around the region, Asian shares again are muted, with MSCI's broadest index of Asia-Pacific shares outside Japan flat to positive after slumping 1.3% in the past three sessions. In the US futures are flat.

All prices and analysis at 25 June 2024.  The content is distributed by WealthHub Securities Limited (WSL) (ABN 83 089 718 249)(AFSL No. 230704). WSL is a Market Participant under the ASIC Market Integrity Rules and a wholly owned subsidiary of National Australia Bank Limited (ABN 12 004 044 937)(AFSL No. 230686) (NAB). NAB doesn’t guarantee its subsidiaries’ obligations or performance, or the products or services its subsidiaries offer.  This material is intended to provide general advice only. It has been prepared without having regard to or taking into account any particular investor’s objectives, financial situation and/or needs. All investors should therefore consider the appropriateness of the advice, in light of their own objectives, financial situation and/or needs, before acting on the advice.  Past performance is not a reliable indicator of future performance.  Any comments, suggestions or views presented do not reflect the views of WSL and/or NAB.  Subject to any terms implied by law and which cannot be excluded, neither WSL nor NAB shall be liable for any errors, omissions, defects or misrepresentations in the information or general advice including any third party sourced data (including by reasons of negligence, negligent misstatement or otherwise) or for any loss or damage (whether direct or indirect) suffered by persons who use or rely on the general advice or information. If any law prohibits the exclusion of such liability, WSL and NAB limit its liability to the re-supply of the information, provided that such limitation is permitted by law and is fair and reasonable. For more information, please click here.