SYDNEY, June 17, 2026, 09:04 AEST
- Coles finished Tuesday at A$23.43, slipping 0.3%. The stock traded between A$23.05 and A$23.47 for the session.
- S&P/ASX 200 closed up 0.04% Tuesday after the Reserve Bank of Australia kept its rates at 4.35%.
- Investors want to see if supermarket sales will balance out higher costs for fuel, freight and packaging, as well as weaker liquor sales and risks from pricing laws.
Coles Group Ltd starts Wednesday on the ASX a touch under water after closing at A$23.43 Tuesday, off 0.3%. The market isn’t open for almost an hour. Regular ASX trade kicks off just before 10 a.m. Sydney and goes through until 4 p.m., with continuous matching throughout the session.
The move was modest. Even so, it comes as investors take another look at defensive stocks — shares of companies viewed as less tied to changes in discretionary spending — with Australian households staring down another round of high borrowing costs.
RBA holds at 4.35%, flags more hikes possible
The Reserve Bank of Australia held its cash rate at 4.35% on Tuesday, following three hikes earlier this year. The bank said inflation remains too high and rates could rise again. That means Coles is still watching basket sizes, private-label sales and how far it can pass supplier price increases to shoppers before they pull back.
S&P/ASX 200 shook off early declines and ended up 3.7 points at 8,917.70. Cameron Curko, chief investment officer at Pitcher Partners, said the RBA had “ongoing concerns with inflationary pressures.” Tim Waterer, chief market analyst at KCM Trade, said traders were “taking a breather” with market waiting for news on the US-Iran ceasefire and oil risks. Business Recorder
Coles hasn’t reported new earnings in the past 48 hours, so investors are still going on the last trading update and macro headlines. Back in May, the company reported a 4% rise in third-quarter supermarket revenue to A$9.78 billion. Comparable sales grew 3.6%. Online sales jumped 24.8%, pushing eCommerce penetration in supermarkets up to 13.6%.
Coles CEO Leah Weckert said “value and availability” will still matter to shoppers in the next few months. The company said early fourth-quarter supermarket sales growth is tracking much like the third quarter, but warned of more supplier cost requests and higher costs for fuel, freight and packaging.
Coles’ main listed grocery rival is Woolworths. The Australian Competition and Consumer Commission names Coles as the country’s second-biggest supermarket chain. The ACCC also flagged separate legal action against Woolworths over price claims, with judgment still pending in that Federal Court case.
But Coles’ outlook is murky. Higher rates might force shoppers to keep trading down, and margins could come under pressure if the company takes on more of the fuel and freight bill to defend its value message. The ACCC case is also still hanging over the business, with the Federal Court already finding Coles misled customers on 13 of 14 “Down Down” tickets. Penalties and other orders are still to come. ACCC
Rate calls are still moving markets. Westpac chief economist Luci Ellis stuck with her call for an August hike, saying the RBA made it clear “further hikes remain on the table.” NAB’s Sally Auld said markets should keep pricing in some risk of tightening in the coming months. ABC News
Wednesday brings a test for Coles. Investors are watching to see if the stock trades like a typical staples play after the RBA pause, or if concerns over inflation and pressure on household budgets weigh on shares. Questions remain about whether sticky costs may push the stock lower.
