SYDNEY, July 9, 2026, 05:04 AEST
- Wesfarmers finished up Wednesday, but Australia’s benchmark share index ended lower.
- Investors are keeping an eye on Bunnings as it takes over Blackwoods and Workwear Group on July 1.
- Valuation is still the main risk after the recent downgrade by Goldman Sachs.
Wesfarmers Ltd WES.AX finished higher on Wednesday, closing at A$90.18, up 0.47%, even as the S&P/ASX 200 slipped 0.21% to 8,785.10. The stock carried that gain into Thursday’s pre-open. Wesfarmers’ move stood out with Australia’s main index in the red. Normal trading on the ASX cash market runs from 09:59:45 to 16:00 Sydney time.
That stood out since Wednesday didn’t see much risk appetite. Stockhead said the benchmark clawed back from a 1.44% drop during the day to end off just 0.21%. Miners, telecoms and tech names were under pressure, and investors moved toward defensive sectors — names viewed as steadier when growth gets shaky.
Wesfarmers is turning to Bunnings for its next move, not the index. Blackwoods and Workwear Group started shifting into the Bunnings Group from July 1, an internal shakeup Wesfarmers says will boost its customer offer, push sales higher, and cut costs. CFO Anthony Gianotti said both Blackwoods and Workwear hold “market-leading positions.” Bunnings boss Mike Schneider said customers should see “more choice” and better stock. Wesfarmers added it doesn’t expect any major one-off costs, with more details coming in its full-year results in August.
That’s the gist for the stock. Bunnings already hits household and tradie markets, but with more industrial and workwear in the mix investors are getting a clearer route to small-business repeat sales. It could be a wait for results to show up in the numbers.
The bullish view showed up outside the company too. Wealth Within senior analyst Filip Tortevski told The Courier-Mail the restructuring was “a very good playbook that they rinse and repeat.” The report put his target at A$98 to A$100, calling that realistic after shares rallied around 25% since mid-May. Courier Mail
Peer moves shaped the session. News.com.au said consumer staples stocks, like food and household goods names, led gains, with Coles Group and Woolworths Group both up, and energy shares also higher as oil prices jumped. Wesfarmers isn’t a supermarket, but a lot of funds treat it as an Australian household spending play.
Wesfarmers’s lineup runs wide, with Bunnings, Kmart Group, Officeworks, Wesfarmers Health, and chemicals, energy and fertilisers in the business mix. Investors get a look at more than one piece of the local economy, not just retail.
But the stock’s valuation is the big worry. Goldman Sachs cut Wesfarmers to sell last week, citing valuation. Reports said the stock dropped 4.03% that day. So investors might already be paying up for a lot of good news.
The bear case is straightforward. If housing turnover stays weak, buyers hold off on big purchases, or the Blackwoods-Workwear rework doesn’t deliver the cost cuts expected, the stock could have trouble holding its premium. Any stumble at Bunnings would hurt more than a typical daily move in the index.
Still, by the close on Wednesday, investors hadn’t lost interest. The next key test is in August, when Wesfarmers gives its full-year results and the first signals on how it wants the market to view the new Bunnings structure.
