In the Media

The ASX laboured hard to manage a smallish gain in May, with its resilience amazing Wealth Within chief analyst Dale Gillham. Be he says another tough month may lie ahead. Australia's benchmark equity index, the S&P/ASX 200, remained range-bound and closed the month up about 1 per cent, led by large-cap companies as small caps lagged. Back home, Gillham said the key message he was getting from the RBA was that the restrictive environment caused by high interest rates was working..."but with the economic challenges we are facing, it has been surprising that the Australian stock market has been so resilient during May," he said...

Looking at key economic points released in May and Australian CPI climbed to its highest point in five months making it unlikely that interest rates will be cut soon and instead that has raised the possibility of an RBA rate hike. The CPI for the year ending in April was 3.5% higher than the expected 3.4%. In comparison monthly inflation for the year ending in March was 3.5%. Wealth Within chief analyst Dale Gillham told Stockhead the key message he is getting from the RBA is that the restrictive environment caused by high interest rates is working, albeit more slowly than they expect. "Moving forward they still expect demand to be subdued as it comes into line with supply, when this occurs, we may see inflation and interest rates ease," he says.

Wealth Within chief analyst Dale Gillham said the sharp pull-back in shares raised questions about whether this presented an opportunity to acquire a "blue-chip stock at a discount" or if it signalled underlying issues within one of Australia's major market players. "If these cost savings are effectively reinvested to foster growth and innovation, this will potentially boost the share price," he said...

Telstra shares are vulnerable to further falls after Australia's biggest telco hit a three-year low following the announcement of plans to axe up to 2800 jobs - or about 9 per cent of its workforce amid increasing competition. The company, which is one of the most popular stocks held by institutional and retail investors, closed on Friday down more than 6 per cent for the week at $3.45 - the lowest close since early May 2021. Total losses are now 21 per cent in the past 12 months - in stark contrast to the broader ASX 200, which has rallied 8 per cent in that time..

Perpetual's recent decision to engage in exclusive talks with KKR to sell its Wealth Management and Corporate Trust divisions, which is set to fetch a substantial $2.175 billion in cash, undoubtedly signifies a juncture in the company's journey. But what implications does this hold for Perpetual's future, and is now the opportune time to consider it as an investment opportunity asks Wealth Within chief analyst Dale Gillham. Interestingly, Perpetual's share price experienced a notable 7% drop following the announcement. The reaction suggests a degree of scepticism, with some viewing the divestment of key business arms as a potential concern rather than a positive development...