The Australian Securities Exchange saw modest gains nearing noon on Wednesday, yet overall advances were tempered by significant ex-dividend declines in major stocks, including Woodside and BHP. In a notable market event, Corporate Travel Management’s share price plummeted 80 per cent upon its re-listing to the ASX, marking a turbulent return for the travel management firm. Separately, Citi upgraded Telstra to a “buy” rating, while Santos announced an increase in its Alaska oil output.
In corporate news, former KPMG chief operating officer Eileen Hoggett has initiated legal action against the accounting and consulting giant. Hoggett is the first former partner to sue the firm following her departure amid an audit scandal. Meanwhile, global fund manager Wellington Management, which oversees approximately $1.8 trillion in assets and for whom Wendy Cromwell helps manage US$1.3 trillion, identified three key investment opportunities for an anticipated artificial intelligence boom, suggesting its potential longevity could span 25 years. Wellington Management is a global investment adviser providing a diverse range of equity, fixed income, and multi-asset strategies to institutional clients worldwide.
Economic policy and its market implications were also in focus. Big banks faced scrutiny at a parliamentary inquiry into housing inequity, with Barbara Pocock ordering the Commonwealth Bank of Australia to return better prepared. Treasurer Jim Chalmers acknowledged that Labor’s recent tax changes were contributing factors to a downturn in the housing market. Additionally, new data revealed a substantial 70 per cent drop in family trust formations following the proposed budget levy of 30 per cent on distributions, indicating a significant impact on financial planning structures.
