Markets at a glance 25 September

Around the grounds         

The Australian share market is edging higher after a two-session slide thanks to gains in commodity stocks helping to offset losses in financials. On the data docket, August’s CPI print came in bang on consensus at 2.7%, compared to a 3.5% increase seen in July. 

While the print has slowed to a three-year low, the moves are largely due to government rebates on electricity and a drop in petrol prices. Core inflation has hit its lowest level since early 2022 in a sign costs may be cooling, albeit gradually. 

Diving deeper into the data, the trimmed mean, a measure closely watched by the RBA, slowed to an annual 3.4%, from the 3.8%, leaving it well above the Australian central bank’s 2-3% target band and continues to be a hurdle to cuts in interest rates.

The Australian dollar (AUD) was little changed after the data drop at 11:30am AEST.

Elsewhere, gold stocks are supporting the bourse, scaling a four-year high amid Middle East tensions and bets for more U.S. rate cuts. As of last close, the index is up over 18% this year, overshadowing a 7.3% gain in the benchmark S&P/ASX200.

The miners are singing a similar tune, with the sub-index up over 2.5% to kiss a two-month high as iron ore prices continue to surge on the tails of a wave of fresh monetary stimulus from top producer China. Copper prices are also at their strongest levels in 10 weeks. As of last close, the AXMM sub-index is down nearly 16% this year.

In the news

Quick check in on some of the stocks to watch in today’s trade. On the reporting calendar, Australian listed shares of Premier Investments (ASX: PMV) have taken a tumble, down over 9% to mark the steepest intraday drop since late-March 2020. It comes after the company reported a near 5% slide in full year net profit, with global retail sales down nearly 3%. Final dividend of 70 cents per share has been declared.

This as the company walks away from its demerger plans of stationary brand Smiggle next year and has prioritised exploring a proposed combination of Myer Holdings’ (ASX: MYR) with PMV’s apparel brands business.

Shares of Sigma Healthcare (ASX: SIG) are also lower as the pharmaceutical distributor posts a near 70% slide in half year net profit from a year earlier.

The stock is up over 33% YTD.

Meantime, ASIC has slapped Macquarie Bank (ASX: MQG) with an AU$5 million fine for allegedly failing to prevent suspicious orders being placed on the electricity futures market. The regulator added, Macquarie has complied with the infringement notice and has paid the fine

In an emailed response, Macquarie said it take full responsibility for all aspects, and has implemented remediation actions to ensure such orders are escalated and actioned appropriately.

Earlier this year, the Federal Court of Australia fined Macquarie Bank A$10 million for its lack of controls to detect and prevent unauthorised fee transactions carried out by third parties on customer accounts.

Australian listed shares of Fortescue (ASX: FMG) are in focus, after the company confirmed it has signed an AU$2.8 billion partnership with German-Swiss equipment manufacturer Liebherr to create one of the world’s largest zero-emission mining fleets. It comes as the iron ore miner continues to explore various strategies to produce green iron, while also expanding into production of hydrogen from renewable resources as it continues on its track to its 2030 ‘Real Zero’ targets.

Shares have touched a three-week high in today’s trade but are down 36% YTD.

Finally, across the ditch, New Zealand listed shares of Fonterra (NZX: FCG) have soared to an over three-year high as the diary firm declares a special 15 NZ cent per share dividend despite a 25% drop in annual profit.

The stock is up over 48% YTD, as of last close.

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