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ASX Live Updates: Tuesday, June 17
Welcome to our live coverage of the ASX for Tuesday, June 17. We are excited to present this new format, featuring a high volume of pre-market posts and regular updates throughout the day. Remember to refresh the page manually for the latest information, and please share your feedback with us here.
Southern Cross Electrical Secures New Contracts Worth $70 Million
9:05 am
Southern Cross Electrical has announced it has won several significant projects amounting to over $70 million. Highlights include:
- Western Sydney Airport Project: The company’s subsidiary, Heyday, has been awarded this contract by CPB Contractors, which consists of two major work packages.
- Hyperscale Data Centre Projects: Heyday has also secured additional electrical work packages from J Hutchinson Pty for a data centre in Sydney’s western region, increasing the total number of packages at this site to six.
Both the Western Sydney Airport project and the data centre initiatives are set to commence immediately, with completion timelines set for Q1 2027 and Q1 2026 respectively.
Source: ASX Announcement | Company Page: Southern Cross Electrical (SXE)
Q2 Earnings Season Approaches
8:55 am
As we approach the end of the June quarter, the market anticipates a 4.9% increase in S&P 500 earnings for Q2, according to FactSet data. This is a marked slowdown from 13.3% in Q1 and represents the slowest growth rate since December 2023. Key expectations for the upcoming earnings season include:
- Net Profit Margins: Expected at 12.3% for Q2, a decline from 12.7% in Q1, but still better than the 12.2% from a year earlier and the five-year average of 11.7%.
- EPS Estimates: Bottom-up EPS estimates for Q2 have dropped by 4.1% to $62.85 from $65.55, outpacing the historical declines of 3.0% over five years, 3.1% over ten years, and 3.3% over fifteen years.
- Q1 Performance: The first quarter’s earnings exceeded expectations, benefiting from tariff mitigation, substantial AI-related capital expenditures, resilient consumer spending, and robust margins.
- Tariff Uncertainty: The looming July 9, 2025 tariff deadline may influence guidance for Q2 earnings.
Apollo Sells Challenger Stake to TAL
8:50 am
Apollo has announced the divestiture of its approximately 10% stake in Challenger, finalising the sale of 4.8% of its holdings to TAL Dai-ichi Life, a Japanese life insurance company, at a price of $7.45 per share, subject to regulatory approval. This sale brings TAL’s total stake in Challenger to the maximum permissible 19.9%, avoiding the need to launch a takeover bid.
Additionally, Apollo has appointed Goldman Sachs to facilitate the sale of its remaining 5.1% stake in Challenger through a block trade with fund managers. This move marks the end of Apollo’s four-year involvement with Challenger, originally entering the investment in 2021 when it acquired the stake from Caledonia for approximately $6 per share.
Source: AFR
Market Influences on Stock Performance
8:35 am
Major US market indices have managed to recover most of the losses from the previous Friday, aided by several factors:
- Geopolitical Tensions: The ongoing conflict between Iran and Israel persists, although Iran is reportedly seeking de-escalation.
- Oil Price Fluctuations: Brent crude oil prices have retracted by 2.6%, settling at $72.40, down from a peak of $77.30 during earlier trading.
- Market Sentiment: Optimism surrounding earnings outlook persists, with investors remaining relatively underweight in equities. Low volatility (indicated by a muted VIX) and a series of recent positive inflation data have also contributed to market stability.
Morning Market Overview
8:30 am
S&P/ASX 200 futures report a slight increase of 5 points (+0.05%), following a stable trading session on Monday where the market concluded near breakeven.
We apologise for the lack of a blog update yesterday due to personal appointments. We are making arrangements to improve continuity in these updates moving forward.
If you’re new to our coverage, catch up quickly with today’s Morning Wrap.
