SYDNEY, June 25, 2026, 02:04 (AEST)
- Wesfarmers ended Wednesday up 0.96% at A$87.27. The S&P/ASX 200 was up 0.24%.
- Wesfarmers shares are up 9.1% since June 9. The company hasn’t lodged anything new with the ASX since its strategy update on June 10.
- Inflation in Australia slowed to 4.0% in May. The trimmed mean—stripping out large price swings—went up to 3.6% from 3.4%.
The ASX cash market was shut at press time. Trading hours are typically 10 a.m. to 4 p.m. in Sydney. The market is scheduled to reopen on Thursday.
Wesfarmers outperformed, while the index settled at 8,808.40. Tech and healthcare names drove most of the gains.
Industrial suppliers Blackwoods and Workwear Group will move under the Bunnings Group on July 1, marking the next operational change. Wesfarmers said the move should lower costs and help the two reach more small and mid-sized businesses. “Customers will have more choice, better product availability and an enhanced customer experience,” Bunnings managing director Mike Schneider said.
Wesfarmers posted a net profit after tax of A$1.6 billion for the half-year to Dec. 31, up 9.3%. Revenue was up 3.1% at A$24.2 billion. Bunnings lifted revenue 4.2% to A$10.71 billion. Kmart’s revenue was up 3.3%.
Metcash said this week that Hardware and Tools revenue rose 4.3% to A$3.7 billion for its 2026 financial year. EBIT dropped 6.3% to A$177.3 million. CEO Doug Jones blamed “softer trade demand” for the hit to hardware earnings. Metcash competes with Bunnings through Mitre 10 and Total Tools.
Inflation numbers left the door open for another Reserve Bank of Australia hike. Interest-rate futures were betting on about a 22% chance of an August move after the data hit, according to Reuters. IG’s Tony Sycamore said the weaker headline read was a positive, but “the firmer trimmed mean keeps the threat of a rate hike ‘if required’ firmly in place.” The Edge Malaysia
RBA hikes cash rate three times in 2024, now at 4.35%. Deputy Governor Andrew Hauser said inflation in Australia is “far too high” and the bank still has more to do. Reuters
Wesfarmers shares are priced at roughly 32 times trailing earnings, with the valuation giving little buffer if sales or earnings miss. The price is about 32 times last year’s profit per share. Another rate hike could hit household demand, and if savings from the Bunnings overhaul slow, the stock’s recent rally could lose steam.
Wesfarmers will release its full-year results on Aug. 27, the company said.
