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The ASX is anticipated to open higher as investors react to recent corporate updates. KMD Brands (ASX:KMD) has signaled a difficult fiscal year 2024, forecasting challenges ahead. Meanwhile, Ansell Limited (ASX:ANN) has announced a reduction in its dividend, reflecting ongoing adjustments in its financial strategy.
ASX Set to Rise; Baby Bunting, Monadelphous, Sims, Hub24, Reliance Worldwide, KMD Brands, and Ansell in Focus
Australian shares are expected to rise, following a positive trend in US stocks, which have advanced for eight consecutive sessions amid growing expectations that the Federal Reserve may begin cutting interest rates next month. ASX futures are up 36 points, or 0.5%, to 7963 as of 7am AEST. The S&P 500 closed 1% higher at 5608.25, marking a 4.3% increase over the past five sessions.
Attention is on Federal Reserve Chairman Jerome Powell, who is scheduled to speak at the central bank’s annual meeting in Jackson Hole, Wyoming later this week, with his speech set for Saturday morning AEST. Mohamed El-Erian, PIMCO’s chief executive, emphasized the importance of Powell using this opportunity to reshape economic and policy narratives.
Stocks in Focus:
- Baby Bunting (ASX:BBN) reported a modest $1.7 million statutory profit for fiscal 2024, an 83% decrease from the previous year, and has reduced its interim dividend from 2.7¢ to 1.8¢.
- Monadelphous (ASX:MND) saw a 16% increase in annual net profit to $62.2 million and remains optimistic about Western Australian resources projects despite losing a lithium contract.
- Sims (ASX:SGM) experienced a net loss of $58 million for fiscal 2024, a sharp decline from last year’s profit of $181 million, and has omitted its interim dividend due to challenging global scrap market conditions.
- Hub24 (ASX:HUB) reported a significant increase in funds under administration, marking a strong year for the wealth management platform.
- Reliance Worldwide Corporation (ASX:RWC) faced a 21% drop in annual net profit to $110.1 million due to decreased demand in the US and Australia.
- KMD Brands (ASX:KMD) noted improved sales from its Rip Curl and Kathmandu stores but reported preliminary figures that remain lower than the previous year ahead of its full-year results next month.
- Ansell Limited (ASX:ANN) reduced its final dividend by 16% as net profit fell 49% to $76.5 million for the year ending June 30.
- Judo Bank (ASX:JDO) observed that small- and medium-sized businesses, previously resilient to higher interest rates, are now facing challenges due to declining consumer demand.
