ASIC has warned it continues to investigate the ASX over its market disclosures relating to its ill-fated attempt to replace its ageing CHESS system.
Appearing before the Parliamentary Joint Committee on Corporations and Financial Services ASIC deputy chair Sarah Court said the regulator continued to investigate the ASX, amid concerns the exchange failed to tell investors its replacement program had gone awry.
Ms Court told the committee ASIC’s investigation was still “very much a live matter from an enforcement perspective”.
“We’ve got a number of investigators working on the matter and we’re aiming to bring it to a conclusion in the relatively near future,” she said.
“I can't put a timeframe, a definitive time frame around it.”
ASX 200 down; Optus preps for ACMA court fight; Telix scraps US IPO; Deterra tanks; Musk's pay voted in at Tesla AGM
Optus preps for ACMA court fight over 2022 hacking. Telix Pharma won't pursue US IPO. Deterra's UK buy, div policy change weighs. McLachlan wooed for Tabcorp CEO role.
That's all from the Trading Day blog for Friday, June 14. The ASX 200 index closed down 03 per cent to 7724.2 points with communications weakest. US markets closed mixed overnight.
The Aussie dollar is trading around US66.20c.
More Coverage
Updates
ASIC closing in on ASX investigation
McLachlan joins investment giant Blackstone
Gillon McLachlan has been hired as a senior advisor to private equity giant Blackstone, the owner of Crown Resorts, in his first move since leaving the AFL at the end of the 2023 season after nine years in charge.
Mr McLachlan, who has been canvassed as the next chief executive of Tabcorp, will work across Blackstone's hospitality, tourism and gaming arms as it looks to expand further in Australia.
The former AFL boss has been linked both to the top Tabcorp job and the Racing Victoria chairman's role as he considers his next corporate move.
Blackstone employs advisors in locations around the world on a part-time basis with Mr McLachlan the first tapped for such a role in the Australian market.
It's expected he will work closely with the head of Blackstone's Australian private equity unit, Michael Blickstead, along with its real estate boss, Chris Tynan.
Blackstone bought Crown in 2022 for $8.9bn, handing former majority owner James Packer a $3.3bn payday.
ASX 200 records worst week in eight
Australia's share market records its worst week since mid-April despite US gains as bond yields fell on lower than expected US inflation data.
After falling 0.3 per cent to 7724.7 points on Friday, the S&P/ASX 200 was down 1.7 per cent for the week versus a 1.6 per cent gain in the S&P 500.
All sectors apart from consumer discretionary and health care fell on Friday, with falls led by communications, industrials, tech and materials.
CAR Group dived 3 per cent and Telstra fell 0.9 per cent, Reece dived 2.8 per cent as Goldman rated it Sell, WiseTEch fell 2.8 per cent after surging this week, Fortescue lost 0.9 per cent and Woodside fell 1 per cent.
Deterra Royalties dived 7 per cent as it plans a $276m UK acquisition and will halve its dividend payout ratio from FY25 onwards.
Nickel Industries slipped despite its clarification that a review of RKEF smelters by Indonesia doesn't apply to existing permits.
Recent falls in commodity prices and a lack of tech exposure explain some of the underperformance versus Wall Street this week, although commodity prices mostly found support during the week.
The materials sector was the worst performing sector, falling 3.2 per cent.
Diverging views on interest rates may also have been a factor after soft US inflation data and strong Australian jobs data this week.
The RBA concludes its two-day meeting at 0230pm AEST Tuesday, with no change expected, but hopes are fading for rate cuts this year.
Eddie Hirsch buys 10pc of Retail Food Group
Retail Food Group gets an initial shareholder notice for a 10.06 per cent stake from Riguad as trustee for the Eddie Hirsch Family Trust.
Eddie Hirsch is a billionaire with a net worth of about $1.79bn.
Retail Food Group shares surged as much as 17 per cent to a 2.5 month high of $0.075 on Thursday and were last trading at $0.074.
ASIC eyes HSBC responses to home loan scams
ASIC is looking closely at HSBC over a scam affecting its customers, amid repeated breaches and unauthorised transactions from customer accounts.
Appearing before the Parliamentary Joint Committee on Corporations and Financial Services ASIC deputy chair Sarah Court said the regulator was “well aware of issues” around HSBC, noting it had been first alerted to the unauthorised transactions from customer accounts 12-18 months ago.
ASIC had been engaging with consumer groups and had heard a number of concerns about HSBC’s responses to its customers who had been defrauded.
“We are closely looking at HSBC’s conduct in relation to responding to its customers on this issue,” she said.
Yen falls as BoJ keeps bond buying plan
The Japanese yen falls after the Bank of Japan disappoints the market by keeping its bond buying unchanged after its meeting, while flagging a plan to cut its bond buying at its next meeting.
A majority of economists surveyed by Bloomberg had expected the BoJ to reduce its bond buying purchases at this meeting based on press reports.
USD/JPY rises to a six-week high of JPY157.98 from JPY157.
RBA's cautious step into the unknown
The Reserve Bank of Australia will take another cautious step into the unknown at its June policy meeting on Tuesday next week, deliberating on a mixed economic picture of growth barely registering a pulse against a backdrop of still-stubborn inflation risks.
Money markets are now comfortable with the idea that the RBA will delay cutting interest rates from the current 4.35 per cent until well into 2025, with RBA governor Michele Bullock expected to confirm once again on Tuesday that the central bank’s board took time to debate a further interest-rate increase.
Bullock is playing an intelligent game with markets by keeping all options on the table for the RBA in an extremely uncertain economic environment.
That wide-open guidance reflects the RBA’s lack of clarity about how the Australian economy will travel through the remainder of the year.
– The Wall Street Journal
McLachlan wooed for Tabcorp CEO role
Gillon McLachlan is moving closer to being appointed as the chief executive of Tabcorp, and could be confirmed for the role by the end of June.
Mr McLachlan, the former CEO of the AFL has discussed the role with the Tabcorp board in recent days and is being courted by the wagering giant’s management to take the job that has been vacant since Adam Rytenskild resigned suddenly in March.
Tabcorp is currently being led temporarily by executive chairman Bruce Akhurst, who dealt with Mr McLachlan and the AFL during his days as a senior executive at Telstra when the telco held broadcast rights for the sport.
At 1pm AEST, Tabcorp shares are 6 per cent higher at 63.25c.
Full report here.
ASX 200 down 0.4pc; falls broaden
Australia's share market extends its intraday fall in quiet trading.
The S&P/ASX 200 index is down 0.4 per cent at 7720 as falls broaden to include all sectors except consumer discretionary and health care.
CBA falls 0.4 per cent, Fortescue falls 1.2 per cent, Transurban falls 0.7 per cent Car Group loses 2.1 per cent and WiseTech falls 2.1 per cent.
It comes after the US rose slightly on narrowly-led gains as the US 10-year bond yield hit a 2.5-month low on lower than expected PPI data.
Highlighting the volatility since it hit a record high of 7910 in early April, the S&P/ASX 200 is down 1.8 per cent for the week, its worst week in eight.
Last week it rose 2.1 per cent, its best week in six months.
The outcome of the BoJ meeting is due this afternoon.
ASIC calls for more cash
Financial regulator ASIC has called for more resourcing to fund its civil enforcement activities and oversight, warning its resources were constrained by current funding levels, which allowed companies to swamp the regulator or delay its responses.
Appearing before the Parliamentary Joint Committee on Corporations and Financial Services ASIC deputy chair Sarah Court said the regulator needed additional funding to bankroll a major technology upgrade.
She told the committee ASIC was dealing with companies which attempted to swamp the regulator with documents, noting the commission was in “dire need” of a “significant technology upgrade”. Ms Court said there was “no doubt in my mind” that if ASIC got more funding it would be able to run more cases and with greater efficiency.
“That would enable us to take on more matters and if we can take on more matters, we could recover more civil penalties to return to government more revenue,” she said.
ASIC chair Joe Longo said the key risk ASIC was facing was under-investment in technology. But he noted any discussion around getting better outcomes from ASIC involved a need for more resources at the Commonwealth Department of Public Prosecutions. Mr Longo said the CDPP was also in need of cash, with criminal matters discovered by ASIC referred to the body.
Join the conversation
ASX 200 tracks best day in five weeks on soft CPI data
RBA unlikely to hike rates with core inflation heading south. RBA unlikely to raise rates next week. CBA hits intraday record of $137.34. Rio Tinto lifts on first-half profit jump. Telix, Origin among heave losers. Asian buyer circles Rex.
Read more
ASX declines; Super Retail CEO, chair sued
Super Retail ex-exec alleges bullying, harassment. Fortescue crashes after mystery stake sale. BHP, Lundin bid $C4.1bn for Filo Corp. Ramsay taps Woolworths Supermarkets boss as next CEO. Credit Corp's top gainer. Rex halts 737 bookings amid financial woes.
Read more