The Point for Australia/NZ

Research evidence excerpt

The Point for Australia/NZ

Point |

Tuesday, 07 July 2026

Company | Industry | Global | Key Rating and Target Price Changes

Company

Australian Securities Exchange (ASX.AX) - EPS nudge on record trading

volumes, hard bounce keeps us Neutral

ASX’s June quarter trading volumes softened from the record volumes seen in

March but remained strong. Indeed, for 2H26 as a whole, both cash equities and

futures trading volumes reached fresh record highs, with cash volumes up 22% yoy

to A$9.5bn/day and the daily number of ASX24 contracts up ~16% yoy. Reflecting

these solid volumes, we nudge up our FY27E/28E EPS by 0.5%/0.6%. Overall,

ASX’s core business continues to perform well, with strong top-line growth, while

its valuation still looks reasonable (~20x FY27E p/e). However, with a relatively

lacklustre near-terms earnings profile and a surprisingly strong bounce off its lows

as sentiment turned quickly, we stay Neutral with a new TP of A$56.50 (+$0.30).

ASX’s new CEO starts on 1 Sep.

Nigel Pittaway | Jeff Cai, CFA | Donna Fu

Dexus (DXS.AX) - Cap Rates Nudge Higher but Rents Offset the Hit — Discount

to NTA Remains Supportive

Dexus's 30 June 2026 portfolio valuation update showed a modest -0.2% decline

in book values across its stabilised portfolio — broadly in line with our

expectations and, in our view, supportive of DXS at current discounts to NTA. The

office portfolio softened -0.4% on marginally higher capitalisation rates, while the

industrial book provided a partial offset, rising +0.5% on the back of market rental

growth. The weighted average cap rate expanded just 3 basis points to 6.06%

across the total stabilised portfolio. We view this outcome as consistent with a

market that is stabilising rather than deteriorating — the CEO's commentary