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Live ASX Market Coverage – Thursday, May 15
Greetings! Welcome to our live coverage of the Australian Securities Exchange (ASX) for Thursday, May 15. We are excited to share this updated format with you. For real-time updates, please refresh the page, and share your feedback via our survey.
Broker Ratings Update
[8:45 am] Here’s a summary of the recent broker ratings:
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Aristocrat Leisure:
- Maintained Buy rating; target price adjusted to $71 from $74 (CITI).
- Maintained Outperform rating; target revised to $70 from $75 (Macquarie).
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Catapult Group: Downgraded to Hold from Buy, with target increased to $4.40 from $4.00 (Bell Potter).
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Iluka Resources: Upgraded to Buy/High Risk from Neutral, with target raised to $5.20 from $4.40 (CITI).
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Judo Capital: Upgraded to Neutral from Sell; target slightly decreased to $1.55 from $1.60 (CITI).
- Technology One: Maintained Neutral rating; target raised to $31 from $27.90 (Macquarie).
Key Market Stories
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Is Now the Time for Currency Hedging?
The Australian dollar’s decline to approximately 65 cents has positively impacted unhedged international equity returns for Australian investors. S&P 500 ETFs have yielded around 14.3% annually compared to 12.5% for US investors. Analysts suggest a hedging strategy for income assets while maintaining growth assets unhedged. A balanced 50/50 approach is recommended to help mitigate risks without necessitating frequent adjustments. -
Warren Buffett’s Investment Legacy in Charts
With Warren Buffett stepping down as CEO of Berkshire Hathaway, he leaves behind an impressive 5.5 million percent return over 60 years. His successful investments included National Indemnity and Apple. While he has encountered setbacks such as with Dexter Shoe, his successor Greg Abel will manage a significant cash reserve. Buffett emphasises that true success is gauged by the love earned rather than just financial wealth. -
Iron Ore Stability Amid Market Volatility
Despite overall market fluctuations, iron ore prices have remained stable at USD 95-100 per tonne, indicative of China’s economic resilience. This stability led to a 28% increase in a recommended stock. Long-term demand for higher-grade iron ore could keep prices buoyant, particularly as steelmakers favour cleaner products from Canada and Brazil. - Two Investment Ideas in 200 Words
Iluka Resources: With a market cap of $1.8 billion, the company is undervalued considering its $1 billion inventory and $400 million stake in Deterra. Its strategic assets, such as Balranald and the Eneabba rare earths refinery, present significant growth potential despite some scepticism around pricing.
IPH Limited: Anticipates soft results in FY25 due to technology setbacks at the Canadian patent office, but is refocusing on more lucrative international ventures. It’s currently trading at a seven-year low with a promising outlook for FY26.
Market Overview
[8:40 am] The overnight trading session was relatively uneventful with no significant market-moving developments:
- The S&P 500 remains slightly positive year-to-date, recovering over 18% since early April.
- No new tariff or trade news; however, the White House has hinted at a potential deal announcement coinciding with Trump’s return from an overseas trip.
- The US 10-year yield is steadily climbing, currently above the crucial 4.5% mark, which might exert downward pressure on equity markets.
- Despite a cooler US Consumer Price Index (CPI) reading released on Wednesday, markets have adjusted their expectations, pricing in less than half a basis point of easing for the remainder of the year.
Good Morning!
[8:35 am] According to S&P/ASX 200 futures, the market is likely to open with a 36-point decline (-0.43%), reflecting a weaker lead from Wall Street, where large tech stocks softened the overall market performance.
If you’re new here, you can catch up on the latest developments through today’s Morning Wrap.
