ASX 200 down; retail sales miss forecasts; Peter Warren falls on profit warning; Boss Energy dives on management selloff

ASX finishes lower on quiet day of trading as April retail sales come in below forecasts. Peter Warren issues profit warning. Southern Cross Media considering ACM proposal. Boss Energy hit by CEO, chair selloff.

Subdued trading for local investors with few overseas leads. Picture: Gaye Gerard

Welcome to the Trading Day blog for Tuesday, May 28.  The ASX 200 index closed down 0.3 per cent to 7766.70 point. Trading was subdued with US and UK sharemarkets on holidays.

The Aussie dollar is near US66.65c.

Updates

4:29 pm May 28, 2024

ASX 200 ends down after early rise

David Rogers

Australia's share market shies off a two-day high in quiet trading after long weekend holidays in the UK and the US.

The S&P/ASX 200 index ends down 0.3 per cent at 7766.7 after falling from an early low of 7801.4 to an intraday low of 7765.7.

The industrials, utilities, communications, consumer discretionary and tech sectors lead broad-based gains with only consumer staples ending higher.

Key drags include a 1.6 per cent fall in Transurban, a 0.8 per cent fall in Macquarie, a 0.4 per cent fall in Westpac and 0.6 per cent fall in Goodman.

CBA and ANZ manage to rise with ANZ ending up 0.5 per cent.

Boss Energy dives 11 per cent on executive share sales.

Peter Warren Automotive continues to nascent "downgrade cluster" amongst domestic and some offshore cyclicals, falling 13 per cent.

4:08 pm May 28, 2024

Canva enterprise GM departs

Joseph Lam

The general manager in charge of Canva's enterprise business has departed the design giant as it rolls out a major campaign to pick up more corporate clients.

Javier Soltero, who joined the company in November 2022 before taking on the enterprise role last year, has quietly transitioned back to his previous role.

The US-based Mr Soltero, who previously held roles with Google and Microsoft, has now transitioned back to an advisory role, a Canva spokesman has confirmed.

"Javier has been an invaluable advisor to Canva for many years and played an important operational role over the last few months to drive a number of crucial projects as we accelerated our enterprise strategy," the spokesman said.

"With his support and our strategy now in place, Javier has transitioned back to an advisory role and continues to provide support and guidance in this capacity."

3:49 pm May 28, 2024

AI to replace recruiters within five years: startup founder

Joseph Lam

The founder of an AI startup which can replace a recruiter with an AI-powered platform says recruiters will cease to exist in five years’ time.

Barb Hyman, whose AI recruitment platform Sapia.ai, which counts Qantas, Woolworths and Starbucks as customers, says the industry will be one of the first to be replaced by the booming technology.

"I have no doubt that recruiters won’t exist in five years," she said.

"I think we have to be honest … no one’s time is served well by screening resumes. If you’ve ever sat in a room with a recruiter and you’ve heard them asking the same questions of 20 different people … is that a fulfilling job?"

2:23 pm May 28, 2024

Optus price hikes provide Telstra relief: analysts

Joseph Lam

Optus has hiked its postpaid mobile phone plans for new customers, ditching one of its previous tiers altogether in a move analysts say will provide some relief to its number one competitor Telstra.

Optus has upped its plans by $3 from $49 to $52, $59 to $62 and merged its large and extra large plans from $69 and $89 to $82.

Goldman Sachs analysts say the move was a “positive” step for industry after Telstra removed its CPI-linked price hikes last week.

Optus wasn’t expected to increase its prices before November when its new chief executive Stephen Rue was set to start, analysis said.

An Optus spokeswoman told The Australian: “Due to the increasing costs to maintain and provide a great network experience, we’ve made the difficult decision to increase the price of some of our mobile plans.”

2:06 pm May 28, 2024 Highlight

Country Road boss curtails scandal talk

Eli Greenblat

The South African boss of embattled fashion house Country Road Group has directed his local staff in Australia to refrain from commenting to the press about the sexual harassment and bullying allegations that have engulfed the retailer, arguing the media storm is “unsettling”.

In an email sent to Country Road staff on Tuesday, Woolworths Holdings chief executive Roy Bagattini also confirmed that the externally led investigation into the way the group handled allegations of sexual harassment and bullying would soon be complete.

This investigation, which began in April, was not expected to be completed for some time, however it is believed the poor publicity around the scandal has encouraged its South African parent to accelerate the investigation and present the findings as soon as possible.

“I can now inform you that the independent investigation that Woolworths Holdings commissioned in April is almost complete, and we will be in a position to share the outcomes with you shortly,” Mr Bagattini said in an email to staff. “The external attention on our company, through these news articles, can be unsettling and comes at a difficult time for yourselves but also for us as a company.”

1:43 pm May 28, 2024 Highlight

Buyback buoys Temple & Webster

Valerina Changarathil

Online furniture and homewares retailer Temple & Webster is one of the few bright spots on the consumer discretionary index with its planned $30m buyback underpinning gains in a subdued market.

Shares in TPW are up nearly 2 per cent to $10 against a 0.8 per cent fall for the ASX XDJ index at 1.40pm AEST.

Earlier on Tuesday, the pureplay web retailer said it would initiate the 12-month buyback on June 17 through broker Canaccord Genuity. "Given the strength of the group's balance sheet (+$100m cash and no debt), the board considers acquiring shares at prevailing share prices to be an effective use of capital while retaining financial flexibility to fund accretive organic and inorganic opportunities," the group told investors.

TPW completed a $23m, year-long buyback on March 19.

1:35 pm May 28, 2024

Canberra aflutter over corp tax call

Geoff Chambers

The Coalition has warned that Jim Chalmers’ authority is under threat after Cabinet colleague Ed Husic on Tuesday pushed for an overhaul of corporate tax or an economy-wide investment allowance, while the Greens attacked Labor's backing of big business during a cost-of-living crisis as “massively out of touch”.

As Mr Husic’s intervention in Dr Chalmers’ treasury portfolio sparked an immediate political fight, Business Council of Australia chief executive Bran Black endorsed the Industry Minister’s support for corporate tax changes.

In the absence of a move on corporate tax, the BCA has strongly advocated for an economy-wide investment allowance that would “boost economic growth and opportunities for Australians”.

Opposition treasury spokesman Angus Taylor said Mr Husic’s intervention undermining Dr Chalmers shows “just how confused this government’s economic priorities are”.

Greens treasury spokesman Nick McKim said Mr Husic’s call is “massively out of touch and ignores the struggles of millions of Australians facing rising costs and stagnant wages”.

1:18 pm May 28, 2024 Highlight

Real retail sales likely 'flat through 2024'

Valerina Changarathil

Real retail sales will be "flat through 2024" Moody's Analytics economist Harry Murphy Cruise predicts.

"The dastardly duo of sticky inflation and still-high interest rates is squeezing households and keeping a lid on retail sales," he says in a note, after April data showed a small uptick of 0.1 per cent versus an expected 0.2 per cent rise. "Looking past some monthly bumps, retail sales haven't budged since December. Stripping out the impacts of higher prices that are pushing up nominal spending, real retail sales are falling."

Sales of household goods have been trending lower since the middle of 2022, while spending has been flat at department stores and on clothing, footwear and accessories over the same period. "In fact, stripping out food retailing and spending at cafes and restaurants, retail sales have been flat for almost two years."

Moody's expects spending will be muted as long as households are under pressure from rising prices and costs. Sticky inflation is also ensuring interest rates will remain where they are until December, but stage three tax cuts and new energy rebates may ease some pressure on family budgets.

12:23 pm May 28, 2024

ASX 200 drifts down in quiet trade

David Rogers

Australia's share market drifts down after an early rise but it's super-quiet after UK and US holidays with trading value 35 per cent below average.

The S&P/ASX 200 index is down 0.2 per cent at 7774.4 after falling from a two-day high of 7801.4 to an intraday low of 7771.

Banks caused most of the intraday downturn

Westpac and Macquarie are down 0.9 per cent.

Transurban fell 1 per cent. Telstra shied off former support at $3.57.

Wesfarmers remains weak after Morgan Stanley downgraded last week.

Boss Energy dives 10 per cent after executive share sales.

Peter Warren Auto dives 11 per cent as the recent "downgrade cluster" among domestically exposed companies continues to grow.

12:17 pm May 28, 2024

Qld fraudster slapped with ASIC ban

Valerina Changarathil

Sunshine Coast financial adviser Brett Andrew Gordon has been banned from providing financial services and engaging in credit activities after he was convicted of fraud offences in April last year.

Mr Gordon was a financial adviser and director of Refocus Financial Group, financial regulator ASIC says. He was convicted of nine counts of fraud for using dishonestly using $652,500 in funds deposited by clients for property development between 2015 and 2018 for personal debts and expenses and Refocus business expenses.

He was sentenced to six years imprisonment, with parole eligibility after 18 months. Mr Gordon has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC's decision.