ASX 200 falls; Cettire tanks; Myer taps Premier for apparels merger; Star earnings strain; ResMed's big drop

Cettire trading warning hits hard. ResMed's big fall a drag on the bourse. Myer soars on move to buy Premier's apparel business. Star's troubles continue as interim CFO takes on acting CEO responsibilities. 

Economic updates in the form of consumer prices are in focus this week. Picture: Nikki Short

Welcome to the Trading Day blog for Monday, June 24. The ASX 200 closed 0.8 per cent lower to 7733.70 points with health and energy stocks the worst performers. May inflation data is due to be released on Wednesday.

The Aussie dollar is trading near US66.45c at 5pm AEST.

Updates

4:28 pm June 24, 2024

ASX finished down 0.8pc; Cettire the biggest decliner

Joseph Carbone

The ASX 200 index closes 0.8 per cent lower in Monday trading to 7733.70 points, with healthcare and energy stocks faring the worst and industrials the only sector finishing in the green.

Of the large energy companies, Woodside finished down 1.9 per cent to $26.99 per share, Santos was 1.6 per cent lower to $7.50 per share and Whitehaven shares lost 3.3 per cent to $7.69 per share.

In healthcare, ResMed's huge fall — sparked without any market update attached — weighed on the sector heavily. ResMed finished down 13.2 per cent to $27.74 per share. Sonic Healthcare closed 2.3 per cent lower and CSL was down 0.3 per cent.

Cettire was the big decliner of the day after expectation of poor fourth quarter results hit the $850m fashion retailer, closing 49.3 per cent to $1.14 per share.

The Big Four banks all finished the day in the red. CBA closed 0.7 per cent lower to $126.80 per share, NAB was also 0.7 per cent lower, to $35.96 per share, ANZ dropped 1 per cent to $28.65 per share and Westpac closed Monday down 0.3 per cent to $27.15 per share.

4:02 pm June 24, 2024

Transgrid finds new chairman

Colin Packham

Transgrid has appointed Grant King as its new chairman, tasking the former head of Origin Energy with overseeing the company as it embarks on delivering much of Australia’s energy transition.

Mr King, former managing director of Origin Energy and current chairman of the Climate Change Authority, will replace Jerry Maycock as chairman.

The appointment will see Mr King pair with Transgrid’s chief executive Brett Redman — the former AGL Energy CEO — to deliver Australia’s energy transition.

3:25 pm June 24, 2024

CS Energy, Qld gov to blame for Callide explosion: court

Nick Evans

Angelica Snowden

CS Energy and the Queensland state government were responsible for the explosion that crippled the Callide C power station in 2021, the federal court has heard, with an independent expert report sheeting home the cause of the explosion to government ordered cost-cutting at the state-owned company.

The explosion at Callide C was ultimately the result of the failure of battery back-up systems at the power plant.

But, the federal court was told on Monday the battery systems failed because of the battery charger installed by CS Energy was “not fit for purpose”.

The revelations come from the report of forensic engineer Sean Brady, who was commissioned by CS Energy to review the cause of the explosion that took a unit of Callide C offline.

2:05 pm June 24, 2024 Highlight

CFMEU split bill introduced

Ewin Hannan

The Albanese government has introduced legislation paving the way for the manufacturing division of the Construction, Forestry and Maritime Employees Union to split from the union following threats made against the AFL by Victorian CFMEU leader, John Setka.

The bill introduced by Workplace Relations Minister Tony Burke on Monday will give manufacturing division members a right to vote on whether to remain within the CFMEU, or leave it and go their own way.

“It’s clear many manufacturing division members, including workers in heavily feminised industries like textiles, do not feel properly represented by the CFMEU,” Mr Burke said. “The recent threatening and thuggish behaviour of John Setka has hardened the Government’s resolve to give members a choice. It’s not hard to see why those members might want to vote to leave.

As well as giving union members the choice to leave, the legislation will, if a ballot is supported, provide guidance about the kinds of workers each union will cover and include safeguards to address any overlapping eligibility rules between the two resulting organisations

Mr Burke said the bill prevents the CFMEU until 2034 expanding its eligibility rules to overlap with the new organisation, unless the unions agree.

1:53 pm June 24, 2024

Big pay rise ahead for incoming G-G

Rhiannon Down

Incoming Governor-General Sam Mostyn will receive a salary of $709,000 a year when she steps into the role, under a 43 per cent pay rise being proposed by the Albanese government.

Legislation introduced on Monday will increase the current salary from $495,000 if passed by parliament, in a major financial boost for the PM's pick to replace sitting Governor-General David Hurley.

Ms Mostyn, who worked for the Labor government in the 1990s, begins her term as the 28th governor-general next Monday after her appointment was announced in April.

The surprise appointment of the business leader came after a stint heading the government’s Women’s Economic Advisory Taskforce, which urged Labor to add superannuation to paid parental leave.

1:51 pm June 24, 2024

Bunnings 'on notice' for fairer green deals

Valerina Changarathil

Wesfarmers-owned retail chain Bunnings is now "on notice" to come to the table and negotiate a fairer trading environment for greenlife growers, the National Farmers Federation Horticulture Council says.

The council welcomed the government's decision to adopt the recommendations of the final report by Craig Emerson on retailers, including a mandatory grocery code. But was critical of some "misses".

"We have also been disappointed that while Dr Emerson has referenced the inequities experienced by greenlife growers supplying Bunnings, his recommendations do not include bringing Bunnings under the Code," the council says. "This in our view misses an important opportunity to extend some protection to greenlife growers and ensure that Bunnings, as the dominate retailer of plants, does not abuse its power."

It was encouraged though that the government had expressed "concern about the allegations of retailer conduct towards suppliers of nursery plants… especially those with significant bargaining power" and has committed to monitoring their conduct.

Shares in Bunnings owner Wesfarmers are down 2.7 per cent to $65.06 at 1.45pm AEST.

1:18 pm June 24, 2024 Highlight

ResMed's 12.5 per cent fall a drag

Valerina Changarathil

Large-cap healthcare stock ResMed's 12.5 per cent fall to $27.97 in afternoon trading is a drag on the wider bourse on Monday.

ResMed's price fall is not linked to any update it provided, but reports suggest a medical trial result that has the potential effect of shrinking its future addressable market may be to blame.

Pharma giant Eli Lilly published results on Friday (US time), outlining positive results from its tirzepatide drug, which reduced obstructive sleep apnea in some participants.

ResMed provides medical devices for the treatment of sleep apnea.

12:59 pm June 24, 2024 Highlight

Myer boss Olivia Wirth's prize move

Eric Johnston

New Myer boss Olivia Wirth has declared the best defence is attack and didn’t waste any time as she launched an audacious plan that both tackles the retailer’s longer term challenges and finally delivers the department store to billionaire shareholder Solomon Lew.

Wirth’s radical bid to merge Myer into Lew’s much larger cashflow machine – the yet-to-be demerged retail business that houses brands like Just Jeans, Dotti and Jacqui E – represents the biggest strategic play since the department store attempted to merge with rival David Jones a decade ago.

The deal, which effectively marks a reverse takeover of Myer, also marks the ultimate prize for Lew after years of stalking, agitating and slowing raising the pressure.

Full commentary here.

Close to 1pm, shares in Myer are 17 per cent higher at 75.5c and Premier is up 4 per cent to $31.24.

12:11 pm June 24, 2024

ASX down at midday; consumer stocks worst

Joseph Carbone

The ASX 200 index is down 0.7 per cent to 7745.70 points at noon AEST, with consumer discretionary, healthcare and energy stocks faring the worst.

With mining stocks down 0.9 per cent on the day, heavyweights BHP, Rio Tinto and Fortescue are all red. BHP is 0.5 per cent lower to $42.56 per share, Rio is down 1 per cent to $119.02 per share, Fortescue is continuing its month-long fall, down 1.8 per cent to $21.32 per share.

After earlier seeing its shares drop almost 37 per cent on the expectation of poor fourth quarter results, Cettire is currently down 46 per cent to $1.21 per share. Myer shares are up 17.1 per cent to 75.5c per share after tapping Premier Investment's apparel arm for a potential merger.

Of the Big Four banks, CBA is up 0.1 per cent to $127.80 per share, NAB is 0.2 per cent higher to $36.29 per share, ANZ is 0.7 per cent lower to $28.73 and Westpac is 0.2 per cent worse to $27.18.

The prospect of a mandatory grocery code has begun to have an impact on the share prices of Woolworths and Coles. Woolies is 0.7 per cent lower, near $33.39 and Coles is down 0.3 per cent to $17.06. Supermarket distributor Metcash is down 3 per cent to $3.67 after booking a lower FY24 profit.

11:34 am June 24, 2024

Metcash's 'good result in a tough market'

Valerina Changarathil

Wholesale grocery business Metcash's lower profit despite strong revenues is "overall a good result in a tough market" analysts at Jarden say.

The company, which services more than 1600 IGAs across Australia reported an 8.2 per cent decrease in underlying FY24 profit to $282.3m on Monday.

Jarden analyst Ben Gilbert highlighted the strong cash flow, but said the "trading update on balance (was) a touch softer with stronger food/liquor offset by the higher multiple hardware business which has seen weaker demand and increased promotional activity".

"We continue to like MTS with view when the housing cycle turns it will offer some of the highest leverage, albeit this is not yet happening," Mr Gilbert says in his note.

Shares are down 4.5 per cent to $3.61 at 11.30am AEST.