ASX 200 Live Today - Tuesday, 27th May

Welcome to our live ASX coverage for Tuesday, May 27. We’re excited to be trialing this new format. Be sure to refresh manually for the latest updates — and let us know how we can make it even better.

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ASX 200 closes at three-month high

[4:30 pm] The S&P/ASX 200 finished up 46 pts (+0.56%) and at best levels, closing at the highest level since 20-Feb and within 2% of all-time highs. Breadth remained relatively muted, with 111 constituents (55%) closing higher, while sector performance was also mixed, with five out of eleven sectors lower.

Despite some weakness under the hull, the market continues to charge ahead. The heavyweight Commonwealth Bank (+0.84%) closed at record highs of $175, while tech stocks including Wisetech, Xero and Technology One finished broadly higher.

Encouragingly, the Australian government 10-year yield has eased to a two-week low of 4.31%, down 15 bps since the RBA's rate cut last week.

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REA Group confirms ACCC investigation

[3:55 pm] REA shares are trading 3% lower after the company confirmed it received "a s155 Notice from the ACCC, requiring REA to provide information regarding certain subscription offerings."

"REA is cooperating fully with the ACCC and is unable to comment further for confidentiality reasons," the company said in a statement.

Source: ASX Announcement | Company page: REA Group (REA)

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Stocks moving on unusual volume

[3:00 pm] These are the S&P/ASX 200 and small-to-mid caps ($200m - $1bn) stocks experiencing unusual volume, as a % of their 20-day average volumes.

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Lithium stocks tank on EV price cuts

[1:30 pm] Lithium stocks are broadly lower after China's BYD announced sweeping price cuts of up to 34% on 22 of its electric and hybrid models.

Here are some of the key takeaways from Bloomberg:

• Stock levels at dealerships last month reached 3.5 million cars, or 57 inventory days, the highest since December 2023, according to data shared last week by the China Passenger Car Association.

• Revisions by BYD include paring the price of its Seagull hatchback to 55,800 yuan ($7,780), a 20% reduction to a model that was already the carmaker’s cheapest.

• “While some of these discounts have been in place since April, the official announcement sends a strong signal of how tough the end market is,” Morgan Stanley analysts including Tim Hsiao wrote in a note.

Chinese lithium carbonate futures opened relatively unchanged on Tuesday, up 0.5% to 60,700 yuan a tonne, the lowest price level since January 2021.

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Stocks on the move

[1:30 pm] Here are the S&P/ASX 200 stocks making the biggest moves at noon.

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InFocus Group doubles on contract win

[11:30 am] InFocus shares more than doubled after the company was appointed exclusive technology partner to TG Solutions Consulting, on the development of an end-to-end iGaming platform solution.

The total contract is valued at an estimated US$3.2 million (~A$5m) over the next twenty four months, with staged progression through the agreement based on milestone completion and performance-related benchmarks.

Interestingly, the estimated contract value is worth more than triple the company's market cap of $1.3m (yesterday close)

Source: ASX Announcement | Company page: InFocus Group (IFG)

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Small caps making moves

[11:00 am] Here are the top small caps ($200m to $1bn market cap) winners and losers as we head towards noon.

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Top gainers and losers at open

[10:30 am] Here are the top S&P/ASX 200 gainers and losers in early trade.

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Barton Gold raises $3m at a premium

[9:55 am] Barton Gold has raised $3 million to fund accelerated JORC resource upgrade drilling at its Tunkillia Gold Project in South Australia.

The placement price of 70 cents per share represents a 4% premium to the stock's last traded price of 67.5 cents on Thursday, 22 May 2025.

Barton Gold shares have rallied 175% year-to-date. Though the stock traded largely sideways for most of 2022-24.

Source: ASX Announcement | Company page: Barton Gold (BGD)

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RPM Global extends buyback

[9:45 am] Mining software solutions company RPM Global announced its intention to extend its current on-market buy-back program for an additional 11 million shares (5% of outstanding shares on issue) for a further twelve month period from 13 June 2025 through to 12 June 2026.

RPM has bought back 17 million shares ($32.2 million at an average $1.88 per share vs. current share price of $2.82) since its buy-back program commenced on 14 June 2022.

"The Board’s decision to extend the current Buy-back program is part of RPM’s ongoing capital management strategy and takes into account the company’s current and historical share price as well as the $80.5 million in available cash."

Source: ASX Announcement | Company page: RPM Global (RUL)

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Straker reports record FY25 EBITDA

[9:35 am] Language services company Straker ($30m market cap) has reported a solid FY25 result.

• Revenue down 10.3% to $44.9m but at the top end of $43-45m guidance range

• Lower revenue was "overwhelmingly" due to a decline in legacy language services, which represented 68% of revenues in FY25 vs. 81% in the pcp

• Gross margins of 67% 'well ahead' of guidance and up over 300 bps compared to FY24

• Record adjusted EBITDA of $4.8m

• Free cash flow of $1.2m

• Cash balance of $12.9m (20 cents per share) and no debt

Source: ASX Announcement | Company page: Straker (STG)

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Propel Funeral Partners' FY25 guidance miss

[9:20 am] Propel Funeral Partners has guided to a softer-than-expected FY25 due to natural fluctuations in industry death volumes.

• Revenue of $220-225m vs. $232.9m consensus (4.4% miss at midpoint)

• Operating EBITDA of $54-56m vs. $60.3m consensus (8.8% miss at midpoint)

The company flagged that industry death volumes have fallen 5.2% in the first four months of 2H25. Though it considers this contraction to be temporary, given i) prior period contracts have rebounded quickly and ii) volumes fluctuate over short time horizons.

Source: ASX Announcement | Company page: Propel Funeral Partners (PFP)

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Telstra outlines 'Connected Future 30' strategy, reaffirms guidance

[9: 10 am] Telstra announced its Connected Future 30 strategy, described as "a strategy that leverages its leadership in mobiles and digital infrastructure, steps up its focus on cost discipline and efficiency across the business, and delivers consistent growth and value for shareholders."

The key takeaways include:

• Increase strategic NPS by over 50% by FY30

• Boost network-as-a-product metrics by 1 point annually

• Achieve sustained cash EBIT for Digital Infrastructure with mid-teens IRR on strategic investments and partnerships

• Maintain 2030 emissions reduction targets: 70% for Scope 1+2, 50% for Scope 3 from FY19 baseline

• Target positive operating leverage, with underlying income growing faster than costs and BAU capex annually to FY30

• Aim for 10% underlying return on capital investment by FY30

• Adjust debt servicing comfort zone to 1.75-2.25x net debt to EBITDA

Telstra also reaffirmed its FY25 guidance, including underlying EBITDA of $8.5-8.7 billion and capex between $3.2-3.4 billion.

Source: ASX Announcement | Company page: Telstra (TLS)

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ALS meets FY25 guidance

[9:00 am] ALS reported a relatively in-line FY25 result and kicked off a $350 million capital raise to "fund organic investments in the laboratory network."

• Revenue up 16% to $2.99bn, in-line with consensus

• Underlying NPAT down 1.4% to $312m vs. $310-313m guidance and $311m consensus

• Full-year dividend down 1.5% to 38.6 cents per share, in-line with consensus

• Net debt up 21.2% to $1.42bn

• Group leverage ratio increased from 2.0x to 2.3x, the upper end of the targeted 1.7-2.3x range

ALS is launching a fully underwritten institutional placement at $16.70 per new share or a 5.3% discount to its last closing price of $17.64 on Monday, 26 May.

The outlook commentary noted:

• FY26 Group revenue growth of 5-7%, with margin expansion (vs. Macquarie estimates of 9%)

• Commodities division to see positive sample volume trends continue in 1H26 and incremental margin improvement

• Life Sciences division targeting continued margin improvement

• No immediate or material impact on input costs relating to US tariffs

• Remains on track to meet FY27 targets including $3.3bn revenue, underlying EBIT of $600m and Group EBIT margin of at least 19%

Source: ASX Announcement | Company page: ALS (ALQ)

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Amplitude Energy issues long-term outlook

[8:50 am] Amplitude Energy has outlined a robust long-term outlook tied to its East Coast Supply Project (ECSP). From 2028, the ECSP has the potential to:

• Increase group production to over 100TJ per day (FY25 guidance: 69-73TJ/day)

• Double group revenue from FY24 levels and more than triple earnings

• Increase group reserves and resources by more than 60%

• Extend the life of the Athena Gas Plant by over a decade

• Significantly boost margins and value accretion of the company's portfolio

Source: ASX Announcement | Company page: Amplitude Energy (AEL)

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Top stories from Livewire

The ASX’s Tesla? Why global investors aren’t keen on CBA | Brambles is the top ASX stock held by over 10% of global funds tracked by Copley Fund Research, while Commonwealth Bank (CBA), despite its recent surge and popularity among Australian investors, is notably absent from the top 10, ranking 14th. Experts highlight CBA's high valuation, trading at a premium compared to global peers like JPMorgan and Google, with no professional fund managers or brokers viewing it as good value, as evidenced by UBS and Morgan Stanley's sell ratings and significantly lower price targets.

Hunting for the best global growth small and mid cap companies | Munro Partners employs a rigorous investment process to select high-growth small and mid-cap companies, focusing on structural trends like AI, big data, and infrastructure, with a strict six-criteria framework ensuring strong revenue growth, customer perception, and ESG practices. Their Global Growth Small & Mid Cap Fund, which achieved a 55% return in 2024, targets a concentrated portfolio of about 600 companies, with standout holdings like Tradeweb and Comfort Systems USA, while maintaining disciplined risk management through stop-loss measures and diversification.

A deeper easing cycle than suspected by most | The RBA has shifted its monetary policy stance, clearly signalling a move toward a lower "neutral" interest rate, with forecasts indicating underlying inflation will hit the midpoint of the 2-3% target band by mid-2025, suggesting steady rate cuts starting in July 2025. The RBA's optimistic outlook on China's economic resilience amid global trade tensions, combined with a revised lower neutral rate estimate of 0.25%, supports expectations of deeper rate reductions, with forecasts now including two additional 25bps cuts in 2026, bringing the cash rate to 2.6%.

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What's driving stocks?

[8:40 am] European stocks rallied after President Trump delayed the rollout of 50% tariffs on the EU till 9 June.

EU Commission President Ursula von der Leyen said the bloc was “ready to advance talks swiftly and decisively," over the weekend.

The pan-European Stoxx 600 closed 1.0% higher, with all sectors positive, while the French CAC 40 gained 1.2% and the German DAX rallied 1.6%.

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Good morning!

[8:40 am] S&P/ASX 200 futures are up 20 pts (+0.23%) following a strong session for European equities. The US market was closed overnight in observance of Memorial Day, the UK market was also closed for the Spring Bank Holiday.

If you’re new to the blog – catch up quick via today’s Morning Wrap.