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ASX Market Update – Friday, June 13
Welcome to our live coverage of the ASX for Friday, June 13. We’re pleased to offer this format, which will feature many pre-market updates today along with intermittent updates throughout the trading hours. Please refresh the page regularly for the latest information, and consider sharing your feedback on how we can enhance your experience.
Accent Group Reports Weak FY25 Earnings Guidance
[9:05 am] Accent Group has provided a sobering outlook for the latter half of FY25, citing challenging trading conditions. The company noted a "low overall growth" in the lifestyle footwear sector for the period of March to early June.
In their statement, Accent Group indicated that ongoing promotional efforts and a continued focus on inventory control in a subdued sales climate are exerting pressure on gross margins. Key insights from their announcement include:
- Like-for-like sales for the 23 weeks ending 8 June 2025 decreased by 1.0%.
- Like-for-like sales for the second half of FY25 (weeks 8-23) experienced a decline of 2.5%, highlighting deteriorating sales momentum.
- Year-on-year gross margins in the second half are reported to have decreased by approximately 80 basis points.
- The EBITDA forecast for FY25 is between $108 million and $111 million, significantly below Citi’s estimates of $148 million.
Source: ASX Announcement | Accent Group (AX1)
Brookfield Divests Significant Stake in Dalrymple Bay Infrastructure
[8:55 am] Brookfield has sold a substantial 115 million shares, about 23% of Dalrymple Bay Infrastructure, at a price of $3.72 per share, reflecting a 7.9% discount to the stock’s previous closing price. Following this divestment, Brookfield’s stake will decrease to around 26%, with plans for a six-month moratorium on additional sales via their vehicle, BIP Bermuda Holdings IV.
Acquired by Brookfield in 2010, the terminal was listed on the ASX in 2020 at $2.57 per share during a $1.3 billion IPO, where they retained a 49% interest. The stake has rallied almost 40% over the past year. Brookfield intends that this sale will enhance the stock’s liquidity, likely positioning it for inclusion in the S&P/ASX 200 Index. Observers are keen to see if the stock will face a selloff due to this discount or attract income-focused investors, given its yield of approximately 5-6%.
Source: ASX Announcement | Dalrymple Bay Infrastructure (DBI)
US Producer Prices Dip, Affirming Positive Inflation Signals
[8:50 am] Recent data from the US indicates that May producer prices have decreased more than anticipated, giving the Federal Reserve a clearer rationale for potential interest rate cuts. The key statistics include:
- The index of producer price inflation rose by just 0.1% month-over-month, falling short of the expected 0.2% increase.
- Core producer prices (excluding food and energy) also saw a 0.1% rise, illustrating minimal inflationary pressure.
- Recent tariffs introduced by the Trump administration have yet to produce notable price increases for consumers or businesses.
- Although wholesaler and retailer margins grew in May, particularly in wholesale vehicle and machinery segments, variations in margins have been seen this year.
- Goods prices, discounting food and energy, climbed by 0.2%, with some tariff-induced increases offset by slight inflation in other categories.
- Services prices rose by 0.1%, primarily due to higher wholesaler margins.
- Economists observed no major price shocks attributed to current tariffs, although inflation pressures might surface in the latter part of the year.
Market Influences
[8:35 am] Major US stock indices ended the previous trading day on a positive note, supported by reassuring inflation data and corporate earnings, despite ongoing trade tensions.
- May core producer prices experienced a modest rise of 0.1%, contrasted with the predicted 0.3%, while annual growth is at 3.0% against a forecast of 3.1%.
- There was strong demand for the US 30-year bond auction, alleviating concerns about investor interest in long-dated treasuries.
- Notably, Oracle shares surged by 13% following revenue guidance that exceeded market expectations, thanks to robust cloud infrastructure growth.
- Challenges persist in US trade negotiations with India and Japan, particularly regarding Indian relations; Japanese PM Ishiba has indicated a lack of urgency for quick agreements.
Morning Market Summary
[8:30 am] The S&P/ASX 200 futures indicate a positive shift, advancing by 46 points (+0.53%), suggesting the market may strive for its third record closing of the week. For those new to our coverage, be sure to review today’s Morning Wrap for an overview of key developments.
As always, we encourage readers to stay tuned for comprehensive updates throughout the day.
