AUS
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Highlights
Pilbara Minerals leads lithium rally; copper stocks rise on global price breakout
BWP Trust announces lease reset and internalisation proposal with Wesfarmers
Reece cuts FY25 guidance, shares slide to multi-month lows
Australian equities under the ASX 200 index traded around flat in early afternoon on Friday, 27 June, with six out of eleven sectors recording declines. Early enthusiasm faded as losses in select heavyweight names offset commodity-led gains.
Santos remained a major talking point following its confirmation of a takeover bid led by Abu Dhabi’s Adnoc. The company, listed under ticker ASX:STO, was one of the early gainers but pulled back slightly from session highs. Meanwhile, the broader All Ordinaries saw a mixed performance with strong moves in copper and lithium-related stocks.
Copper and Lithium Stocks Power Ahead
Copper stocks saw renewed interest after a strong rally in global copper prices. Companies like Aeris Resources (ASX:AIS), Capstone Copper (ASX:CSC), and Sandfire Resources (ASX:SFR) were among the top performers, with intraday movements reflecting the bullish sentiment around supply-demand dynamics.
In lithium, Pilbara Minerals (ASX:PLS), a key constituent on the ASX 100, led a broad uptick across the space. Stabilisation in Chinese lithium carbonate futures contributed to the momentum, lifting names such as Core Lithium (ASX:CXO), Lake Resources (ASX:LKE), and Vulcan Energy (ASX:VUL).
BWP Trust Proposes Structural Overhaul
BWP Trust (ASX:BWP) unveiled a significant three-part transaction plan involving the internalisation of management, renegotiation of Bunnings lease terms, and commitments to expand its property network. The proposal includes a payment arrangement with Wesfarmers for management transition.
As part of the overhaul, the trust expects extended lease durations and reduced operating costs. Management also outlined anticipated improvements in distribution from FY26 onwards, aligning with enhanced property valuation metrics.
Reece Guides Lower for FY25 Amid Market Challenges
Plumbing and building supply company Reece Group (ASX:REH) downgraded its FY25 earnings guidance citing continued weakness in housing-related demand across Australia and the US. The company flagged macroeconomic pressures and heightened competition, particularly in the US market.
Despite earlier cost and margin management efforts, Reece’s update pointed to sustained softness in volumes. The company acknowledged that interest rate relief had not yet translated into improved housing activity, which continues to weigh on operations.
Small Caps and Early Movers in Focus
Smaller capitalisation names also made notable moves, with Alliance Aviation Services (ASX:AQZ) and Chalice Mining (ASX:CHN) registering early gains. Meanwhile, Reece and the ASX Ltd (ASX:ASX) faced headwinds, with the latter under pressure following an inquiry announcement by ASIC.
The latest updates from ASIC on its review of ASX operations and governance have added to selling pressure on the bourse operator. This follows concerns over its structure as a self-listed monopoly, which may undergo scrutiny in the months ahead.
