Morningstar flags risks tied to 'safe' Aussie retailers; sub-index up

Coles

23/04/2025 01:38

** Consumer staples .AXSJ rises as much as 1.1% to 12,372.2 points, highest since February 27

** Sub-index rises in tandem with benchmark .AXJO, which is up 1.4% to its highest since April 3

** Morningstar says Australian retailers offer shelter from  U.S. tariffs

** But sees two indirect impacts - potential economic slowdown could tightening consumer spending, though not to a disastrous extent

** Oversupply of Chinese goods as online retailers may seek more share in Australia, weighing on near-term discretionary retailer profits

** Retail majors Woolworths WOW.AX rises 0.6% to A$31.75, Coles Group COL.AX gains as much as 0.9% to a record high of A$21.63

** AXSJ advances 5.1% YTD

 (Reporting by Jasmeen Ara Shaikh in Bengaluru)

 ((JasmeenAraIslam.Shaikh@thomsonreuters.com;))