Latest news with #S&P-ASX200
West Australian
03-07-2025
- Business
- West Australian
Super funds return more than 10 per cent again despite rollercoaster financial year
Retirement nest eggs grew more than 10 per cent in the just-completed 2025 financial year, despite a rollercoaster ride that threatened to leave superannuants underwater just three months ago. Numbers released by superannuation research firm SuperRatings on Thursday show the median balanced fund - one with between 60 per cent and 70 per cent of balances exposed to shares and other growth assets - is estimated to have returned 10.1 per cent in the year to June 30. The growth has been attributed to the big US tech stocks and Australia's banks, notably Commonwealth Bank and represents the third double-digit return for Australian superannuation funds in the past 10 years. It's consistent with the 10 per cent rise in the S&P-ASX200 for the 12 month period. However, returns could have been even better if not for US President Donald Trump's tariffs, which hammered investor confidence and sparked savage sell-offs on global equity markets in the second half. The first seven months of the financial year to 31 January saw super funds delivering an 8 per cent return. However, that had fallen to just 0.8 per cent by early April after the announcement of the 'Liberation Day' levies on US trading partners. 'We saw exceptional volatility in returns over the year, particularly following the announcement of US tariffs in early 2025,' SuperRatings executive director Kirby Rappell said. 'However, the benefit of staying the course was once again proven as a quick rebound has resulted in the third double digit return year over the past decade.' More to come.
West Australian
11-06-2025
- Business
- West Australian
Australian shares hit second consecutive record high as investors hope for trade truce
The Australian share market has a hit a second consecutive record high as hopes build of a trade truce between the United States and China. The S&P-ASX200 index leapt to a new peak of 8639.1 points in early trading on Wednesday before paring back its gains to finish just 4.9 points better at 8592.1, extending the year's growth to 5.3 per cent. It is up 9.5 per cent for the quarter, on track for its biggest advance since the 2020 fourth quarter, after recovering from the April lows plumbed in the wake of US President Donald Trump's announcement of wide-ranging tariffs against China and most of his country's other trading partners. Since its low on April 7, the S&P-ASX200 incredibly has clawed back 19.8 per cent, helped by Mr Trump's deferment of the levies until next month. In recent days, investors have drawn hope from promising signs of a thawing of trade tensions between the US and China off the back of trade talks in London. In particular, US negotiators said they 'absolutely expect' that issues around shipments of rare earths would be resolved as part of a trade accord. Seven of the ASX200's 11 sectors finished in the green on Wednesday, led by real estate (up 0.9 per cent) and energy (up 0.8 per cent). Banking stocks, notably Commonwealth Bank of Australia, also lifted the market early but fell away in later trading. CBA, which has been on a flyer, hit a record high of $183.19 before closing down 0.3 per cent at $181.40. Woodside Energy was the best of the energy stocks, adding 1.8 per cent, while Fortescue and BHP climbed 3.5 per cent and 1.5 per cent respectively as iron ore prices gained. Buy now, pay later group Zip Co was jumped 15.5 per cent after upgrading its annual earnings guidance, citing strong growth momentum in the US. Johns Lyng Group surged 17.7 per cent after confirming a media report that Pacific Equity Partners had lobbed a buyout offer for the construction company. Monash IVF recovered 11 per cent after giving up 28 per cent on Tuesday on disclosure of a second embryo mix-up at its Melbourne laboratory. Pepperstone head of research Chris Weston attributed the market's 'impressive snapback' since April to a combination of the tariff pauses, 'resilient and even improving US and global economic data', along with US company upgrades and a sharp reduction in investment volatility. 'We continue to be reminded that the share market is not reflective of the economy,' Mr Weston said. 'As we know, the Aussie economy is hardly blowing the lights out ... in fact, the idea that growth remains sluggish reinforces the notion that the RBA will cut interest rates' next month. The market recovery over the past two months has been led by tech stocks, which have gained 42 per cent. They have easily outperformed the energy sector (up 25 per cent) and the financial index (up 21 per cent). The Australian dollar remained around the US65¢ mark.
West Australian
11-06-2025
- Business
- West Australian
ASX200 climbs even higher into the record books as Wall Street pins hopes on China-US trade resolution
The Australian share market has pushed higher into uncharted territory, following a jump on Wall Street in the US overnight that was fuelled by hopes of a positive outcome from US-China trade talks aimed at defusing a tariff dispute that has whip-lashed global markets. The S&P-ASX200 surged to a fresh record closing high on Tuesday of 8587.20 — surpassing its previous record close of 8555.8 set back on February 14 — just seven weeks before US President Donald Trump's so-called Liberation Day tariffs crashed markets around the globe. The leading index rose again in early trade on Wednesday, climbing to 8638.2 in the opening minutes before retreating slightly to 8617.9 — up 30.7 points, or 0.4 per cent — by 9am. All sectors bar health care were in the green, led by strong gains among energy, mining, telco and real estate stocks. More to come
West Australian
04-06-2025
- Business
- West Australian
Virgin Australia readies for long-awaited ASX arrival with $685m IPO
Virgin Australia has hit the runway for its return onto the Australian Securities Exchange with a near-$700 million initial public offering. Its US private equity owner Bain Capital is selling 30 per cent of the airline at $2.90 a share, according to several media reports on Wednesday. The float is expected to raise $685m, valuing the airline at just over $2.3 billion. The $2.90 price tag compares with major rival Qantas' $10.70 share price just before the market's close on Wednesday. Since 2023, Bain has sold a 25 per cent stake in Virgin to Qatar Airways, allowing the Australian airline to return to long-haul flights by using the Gulf carrier's planes and crew to begin flying to Doha from Perth, Brisbane, Melbourne and Sydney from this month. Under the float, Bain's shareholding will drop from about 70 per cent to 40 per cent, while Qatar Airways will retain its stake. Bain Capital bought Virgin in 2020 after it crashed into administration with billions of dollars worth of debt following the onset of the COVID-19 pandemic. The US group has made several attempts to get Virgin back on to the ASX after the airline's first run as a publicly traded entity didn't go so well. The group abandoned plans for a float towards the end of 2022, with both Bain and Virgin blaming volatile share markets. Another attempt was made in 2023 but this too was abandoned, with Bain blaming a variety of external factors like offshore investor briefings having to be canned to allow then-CEO Ms Hrdlicka to deal with the death of her husband. With the S&P-ASX200 hitting a new 50-day high on Wednesday, it opens a window for Bain to press ahead with Virgin's long-awaited return to the ASX after an absence of nearly five years. In April, Australian shares crashed to their biggest loss since the early days of COVID-19, with more than $100b wiped from stock values as the fallout from US President Donald Trump's tariffs wreaked havoc on global markets. A report from the competition regulator late last month found dwindling competition and record profits cleared the way for an airline duopoly between Qantas and Virgin. After the demise of Regional Express, which saw it withdraw from capital city routes, Virgin increased its share of passengers to about 34 per cent in March, up from the 31.3 per cent recorded a year prior. Virgin also acquired three of Rex's Boeing 737 aircraft leases, which has facilitated its ability to add seat capacity and improve network reliance. Qantas Group reported earnings before interest and taxes of $1.5b for the first half of the financial year, with $916m coming from its domestic operations across both Qantas and Jetstar, according to the Australian Competition and Consumer Commission report. 'Jetstar has been able to capitalise on the continued absence of competitive pressure from another low-cost carrier in the domestic market to increase its market share and operating margin,' ACCC commissioner Anna Brakey said at the time. While Virgin Australia does not publicly report half-year results, Ms Hrdlicka in February said the airline had achieved record profits over the period.
