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Live Coverage of ASX: Key Highlights for May 6
Welcome! We’re pleased to introduce our live updates for the Australian Securities Exchange (ASX) on this fine Tuesday. Be sure to refresh manually for the latest insights and feel free to reach out with suggestions for improvement!
Vicinity Centres Reports Strong Retail Performance
[9:04 am] Vicinity Centres has posted encouraging results for the discretionary and retail Real Estate Investment Trust (REIT) sector in the March quarter, showing a 2.4% increase in total portfolio retail sales. Notably, specialty stores and mini-majors contributed significantly to this growth, rising by 3.1% thanks to strong sales in Leisure, Jewellery, Retail, and Homewares segments.
Key Financial Metrics:
- Pro forma gearing stands at 27.5%, which is at the lower end of its target range, allowing room for further investment.
- FY25 Funds from Operations (FFO) and adjusted FFO per share are projected to reach the upper limits of guidance, with expectations of 14.5-14.8 cents and 12.3-12.6 cents, respectively.
- Macquarie analysts (Feb 2025) have forecasted FY25 FFO at 14.8 cents and adjusted FFO at 12.6 cents—confirming prior expectations.
- The full-year distribution payout is anticipated to be at the lower end of the 95-100% range of adjusted FFO.
Source: ASX Announcement | Company Profile: Vicinity Centres (VCX)
Noteworthy Articles from Livewire
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Winners and Losers from the 2025 Election: Labour’s recent victory opens doors for opportunities in green energy and housing, although Victoria’s fiscal challenges serve as a cautionary tale for both investors and government.
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ASX Stocks Under Spotlight: Amidst a trend where local investors are eyeing international markets, fund managers at the Lonsec Symposium highlight ASX stocks like Breville, WiseTech, and Pro Medicus as robust candidates for growth, particularly in light of trade tensions.
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Crash-Tested Stocks: Amid escalating US-China trade tensions, Plato’s analysis flags Novonix and Boss Energy as vulnerable, while highlighting Ricegrowers and Endeavour Group as resilient options.
- Gold Demand Analysis: A recent surge in gold prices, reaching $A5,000 per ounce, is largely driven by economic uncertainties, leading to increased demand for gold ETFs. Local gold stocks are positioned to leverage this trend effectively.
Forward-Looking Insights from Goldman Sachs and Bank of America
[8:45 am] Notable forward-looking indicators have emerged concerning S&P 500 performance:
- The S&P 500 traditionally shows varying returns following a 9-day winning streak, recorded just 14 times since 1970:
| Time Frame | Return (%) |
|---|---|
| 1 Month | +0.71% |
| 3 Months | +2.02% |
| 6 Months | +0.05% |
| 9 Months | +3.32% |
| 12 Months | +3.62% |
- In Q1 earnings, 24% of companies referenced a "recession" during their calls, up significantly from 2% in the previous quarter, suggesting potential risks in corporate earnings ahead.
Drivers of Market Weakness
[8:40 am] The previous trading session presented a degree of calm with no major macroeconomic catalysts influencing movements. The S&P 500 exhibited a 9-day winning streak, its first in two decades, indicating overbought conditions.
Sector Rotation Observed:
- High-growth sectors, such as Technology and Consumer Discretionary, saw a pullback, down 1.3% and 0.8%, respectively, after strong periods of performance. Conversely, defensive sectors like Consumer Staples, Industrials, and Telecoms mostly maintained stability.
Market Outlook
Good morning! The S&P/ASX 200 experienced a downturn of 0.97% throughout yesterday and is expected to continue this trend today, with futures suggesting a decrease of 21 points (approximately -0.25%). If you’re new to our updates, don’t forget to catch up through today’s Morning Wrap!
Stay tuned for ongoing updates as the market unfolds!
