Table of Contents
Welcome to our live coverage of the ASX for Tuesday, May 5. Please anticipate several posts before market opens and periodic updates throughout the day, concluding around 2:00 pm AEST. Share your feedback to help us improve!
NAB 1H26 Earnings Call Insights
[9:02 am] Here are the essential points from NAB’s earnings call held yesterday:
- Credit impairment charges and asset ratios may remain high in the near term: Recent provisions are due to specific international exposures rather than a widespread downturn, with RWAs expected to increase by approximately $3 billion over the next 12-18 months.
- NIM faces slight pressure: Deposit mix changes and competition are expected to impact NIM slightly, while the management anticipates one more cash rate hike in FY26, which will have a minor effect on NIM.
- Moderation in business credit growth: Following an elevated annualised growth of 10% in H1, a slowdown is expected in H2, although the pipeline remains strong.
- Cost growth in FY26 to be under 4.6%: Productivity savings are projected to exceed $450 million.
- Temporary capital overlays: Changes to risk models are not anticipated, with no adjustments to the DRP neutralisation policy or payout ratio targets planned.
Company page: National Australia Bank (NAB)
Sigma Healthcare Sees Growth and Expands to the UK
[9:00 am] Sigma Healthcare has reported strong double-digit like-for-like (LFL) sales growth within the Chemist Warehouse network and is set to enter the UK market.
- Sales performance: From July 1 to April 30, like-for-like sales for the Australian network surged by 14.4%, with the international network following suit with an 11.8% increase.
- UK market entry: Sigma has signed a Memorandum of Understanding with GreenLight Healthcare to establish Chemist Warehouse in the UK, acquiring a 75% stake in several stores.
- New Zealand distribution centre: Sigma has secured a long-term 15-year lease on a 23,000 sqm temperature-controlled distribution centre in Wiri, focusing on expanding Chemist Warehouse stores in New Zealand to over 100.
Company page: Sigma Healthcare (SIG)
PEXA Group Affirms FY26 Guidance
[8:54 am] The PEXA Group has reiterated its FY26 guidance, reporting Group Core NPAT at the upper end of expectations due to strong Australian market activity and sound cost management.
- Transaction volumes: Australian transactions rose 7.3% year-on-year, nearing 935,000, with market penetration stable at 90%.
- International remortgaging: Strong activity was noted, with significant growth in instructions and completions for both Optima and Smoove.
- Revenue guidance maintained: FY26 revenue is expected in the range of $395 million to $415 million.
- Core NPAT guidance: Expected at the top end of the $15 million to $25 million bracket.
- FY26 EBITDA margin guidance: Maintained between 34%-37%, with capital expenditure projected at $50 million to $55 million.
Company page: PEXA Group (PXA)
Insider Trading: Regal Partners Chair-elect Peter Yates
[8:51 am] Peter Yates, the incoming Chair of Regal Partners, has purchased 84,000 shares. He will assume the role following the AGM on 28 May 2026, succeeding Michael Cole, who has served since June 2022.
Company page: Regal Partners (RPL)
ASX Heavyweights Absent from Macquarie Conference Amid Earnings Concerns
[8:47 am] Major ASX-listed companies such as CSL and Lendlease have reportedly withdrawn from the Macquarie Australia Conference this week, which is often seen as the unofficial start of “confession season” for earnings disclosures.
- Confession season: Companies may reveal whether they will meet previous earnings guidance, made before the onset of the Iran war.
The conference runs from May 5 to May 7.
Source: AFR
RBA Set to Hike Rates Amid Inflation Concerns
[8:45 am] The Reserve Bank of Australia is anticipated to implement its third consecutive rate rise today, as inflation concerns continue amid global economic uncertainties.
- Rate expectations: Economists expect the cash rate to rise to 4.35%, fully reversing last year’s cuts.
- Inflation trends: Q1 inflation remains above the target band of 2-3%, affecting various sectors from building materials to food and freight.
- Immediate future: The RBA will release updated forecasts at 3:30 pm AEST.
Bitcoin Surpasses US$80,000 Amid Market Optimism
[8:39 am] Bitcoin has surpassed the US$80,000 mark, showing resilience amid geopolitical tensions and increasing optimism regarding US regulatory frameworks for stablecoins.
- Market performance: Bitcoin’s value climbed to US$80,768, reflecting a recovery since the beginning of the Iran conflict.
- Positive sentiment: There are signs of potential progress in US stablecoin regulation, encouraging further investment in the crypto space.
US Stocks Retreat as Geopolitical Tensions Rise
[8:38 am] US stock markets experienced a downturn as escalating tensions in the Iran region impacted oil prices and bond yields, leading to concerns among investors.
- Market reactions: S&P 500, Dow, and Nasdaq all closed lower, reflecting widespread declines.
- Oil prices: Brent crude increased by 4.4% amidst the military tensions.
Good morning!
[8:20 am] The ASX 200 futures are down 70 points (0.8%) as of 8:30 am AEST, signalling a soft opening.
- US Market Summary: All major indices closed lower, with energy being the only sector to gain. Inflation concerns are driving bond yields upward.
