Latest news with #LukeWinchester
Mint
27-05-2025
- Business
- Mint
Banks, tech stocks pull Aussie shares higher ahead of inflation data
AXJO hits highest daily close since February 19 Australian CPI data awaited RBNZ expected to cut rates on Wednesday May 27 (Reuters) - Australian shares ended at more than three-month high on Tuesday, driven by gains in financials and technology stocks, while investors awaited the release of the April inflation data, which is expected to show further moderation. The S&P/ASX 200 index rose 0.5% to 8405.4, the highest daily close since February 19. The benchmark had ended flat on Monday. "I think we are in a quiet period for the market in the lead up to (the) end of (the) financial year... market is bouncing around on macroeconomic news, which... is looking positive for equities," said Luke Winchester, portfolio manager at Merewether Capital. Australia's financial year ends on June 30. Financials gained 1.1%, with the "Big Four" banks rising between 0.9% and 1.4%. The banks have gained since the RBA's rate reduction in May, buoyed by expectations of lending volume growth on lower rates. "However, the next big move in banks is almost certainly down as they have very limited room to rise further without earnings growth," said George Kurian, portfolio manager at Oracle Investment Management. Technology stocks added 1.2%, touching the highest since February 24 earlier in the session. The sub-index extended its gains from Monday, with WiseTech Global rising 2.5% to lead the rally a day after announcing its mega $2.1 billion takeover deal. Dragging the index lower, miners fell 0.3% on falling iron ore prices. Real estate stocks lost 0.4%. Investors are waiting for the Consumer Price Index (CPI) data on Wednesday to glean clues on the Reserve Bank of Australia's (RBA) next move, with analysts expecting the monthly rate to have eased to 2.3% in April from 2.4% a month ago. The market has priced in a 67% chance of an RBA rate cut in July. 0#AUDIRPR New Zealand's benchmark S&P/NZX 50 index closed 0.3% higher at 12,582.33 points, a day ahead of the local central bank's rate decision, where a 25-basis-point cut is expected, a Reuters poll showed. (Reporting by Rajasik Mukherjee in Bengaluru; Editing by Sumana Nandy)
Reuters
27-02-2025
- Business
- Reuters
Australia's Ramsay Health Care mulls potential sale of European arm
Feb 27 (Reuters) - Ramsay Health Care ( opens new tab has appointed Goldman Sachs to look at strategic options for its stake in its European division following an internal review, the Australian private hospital operator said on Thursday, hinting at a potential sale. The decision comes on the heels of management changes made earlier this year, including its group finance chief stepping down with a successor yet to be named and plans to boost the company's core Australian hospital business. The decision to explore options for Ramsay Sante, the European division, was "in line with the refocus of its strategy". "There are multiple factors that may influence timing and outcomes of this process. All strategic options need to take into account Ramsay Sante's shareholding structure," Ramsay Health Care, the country's largest independent hospital operator, said in a statement. Sante, a private healthcare operator in Europe with its services spread across France, Italy, Norway, among others, has been underperforming for a while now. The division recorded a net loss of 43.1 million euros ($45.11 million) in its half-yearly results earlier this week. Ramsay Health Care owns around 52.8% of Ramsay Sante while Predica, a unit of French international banking group Credit Agricole, holds 39.8% of ownership. A potential divestment of Sante would bode well for Ramsay Health Care, said Luke Winchester, portfolio manager at Merewether Capital. "It has been a headache for management for some time, new executive team is in place and they have the opportunity to start fresh." The Australian parent reported it swung to a first-half net loss with poor results at Ramsay Sante and Elysium weighing on its bottom line. A sale could also see Ramsay returning some capital to shareholders, added Winchester. Ramsay's stock closed nearly 7% higher on Thursday, having risen as much as 16.7% earlier in the day, marking its best intraday percentage gain since April, 2022. ($1 = 0.9554 euros)
Reuters
19-02-2025
- Business
- Reuters
Guzman, Wesfarmers to deliver upbeat earnings for Australian discretionary retailers
Feb 19 (Reuters) - Australia's discretionary retailers are expected to report improved half-yearly earnings, investors said, as easing inflation and tax cuts encouraged weary consumers to start spending again. The Australian retail sub-index (.AXDJ), opens new tab, which includes Kmart and Bunnings hardware chain owner Wesfarmers ( opens new tab, electronics retailer Harvey Norman ( opens new tab and Mexican fast food chain Guzman y Gomez ( opens new tab, has gained 8.2% so far this year. "On balance the discretionary retailers will report well," said Luke Winchester, portfolio manager at Merewether Capital. "The 'cost of living crisis' has been well documented in Australia over the last couple of years, however the retailers have been resilient in the face of that." Australia's central bank delivered the country's first interest rate cut in more than four years on Tuesday but warned it was too early to declare victory over inflation and said it was cautious about further easing. Guzman y Gomez is the pick for this reporting season, analysts said, after its sizzling initial public offering debut last year. Ron Shamgar, head of Australian equities at TAMIM Asset Management, said he was optimistic about Guzman's results but noted potential risks to its share price. "There would be a significant amount of stock coming out of escrow post the results which could place some pressure on the share price in the short term," added Shamgar. Guzman is slated to release its half-year earnings on February 21. Perth-based conglomerate Wesfarmers, which in January announced it would wind down Catch, its loss-making online retailer, is expected to post a slight increase in half-year profit, LSEG data showed. The company will report its first-half performance on February 20. "Wesfarmers' share price has been surging over the past year," said Tim Waterer, chief market analyst with KMC Trade, adding that shareholders expect the company "will 'deliver the goods' on the earnings front." Grady Wulff, an analyst with Bell Direct, said investors might focus more than usual on companies' second-half prospects "to determine whether the headwinds of high cost of living pressures are hitting discretionary spend or not". With lower interest rates and tax savings, consumers might make more discretionary purchases, reversing the trend of frugality that has characterised the past two years when they put non-essential purchases on hold. "The retailers will be one of the sectors that benefits the most from easing interest rates. The tailwinds for our discretionary companies will be strong heading into the rate cut cycle," Wulff said.
