Star Entertainment’s Brisbane Casino Sale Faces Termination; ASX Rises Amid Other Key Business Updates

Star Entertainment is facing uncertainty over the planned sale of its Brisbane casino stake, as Hong Kong partners signal intent to terminate the $53 million deal. Despite this corporate setback, the Australian share market is trading higher today, tracking global gains. This comes as other significant business news unfolds, including Optus Sport’s upcoming closure with rights shifting to Stan, James Hardie’s successful merger approval, and Bupa facing a hefty penalty for misleading customers.

Key takeaways from today’s market movements and corporate news include:

• Star Entertainment’s $53 million Brisbane casino sale agreement is under threat as partners issue a termination notice.
• The ASX 200 is trading higher, supported by gains in financials and industrials, while miners weigh.
• Optus Sport will cease operations in August, with its key football broadcasting rights moving to Stan.
• Building products giant James Hardie has secured shareholder approval for its major $14 billion merger in the US.
• Health insurer Bupa is facing a significant $35 million penalty from the ACCC for past misleading conduct regarding customer claims.
• New economic data provides mixed signals from China’s economy and shows a slight easing in Australian private sector credit growth.
• Australia’s resource export earnings outlook has softened, although gold is forecast to see stronger returns.

Star Entertainment Faces Brisbane Casino Sale Termination

Star Entertainment has received a notice from its Queen’s Wharf Brisbane joint venture partners, Hong Kong-based Far East Consortium International and Chow Tai Fook Enterprises, indicating their intention to terminate the agreement to purchase Star’s 50% stake in the project for $53 million.

The agreement, originally reached in March, also included arrangements for Star to take full ownership of its Gold Coast property. Star confirmed that, as of Monday morning, the parties had not reached an agreement on outstanding commercial issues required to finalise the long-form documents for the sale.

Despite the termination notice, which is set to take effect in five business days unless withdrawn, Star stated it would continue negotiations. Should the termination proceed and Star fail to repay a $10 million amount within 30 days, the agreement requires Star to transfer its 33.3% interest in Tower 1 (Dorsett) to the Hong Kong partners.

This development introduces fresh uncertainty for Star Entertainment, which recently secured shareholder approval for a $300 million rescue deal backed by Bally’s and Bruce Mathieson. The potential collapse of the Brisbane stake sale adds complexity to Star’s financial and operational restructuring efforts.

Exterior view of a Star Entertainment casino building in a city skyline setting, symbolizing corporate real estate assets

ASX Trends Upwards Amid Diverse Stock Performance

The Australian share market, measured by the ASX 200 index, opened marginally higher today and has maintained gains, trading around 0.3% up in early afternoon trade. This follows a solid rally seen on Wall Street on Friday.

Sector performance on the ASX is mixed. Early trade saw Health and Financials leading the gains, a trend that has largely continued, along with strength in Industrials and Utilities. However, the heavyweight Mining and Energy sectors have seen declines.

Major banks are trading higher, defying some market commentary about valuations, with Macquarie Group notably up. Building products company James Hardie is a standout performer today, surging over 7% after a significant corporate announcement.

Key Stock Movers and Sector Highlights

James Hardie (+7.6% initially, reaching over 9%): The company received crucial approval from AZEK shareholders in the US for its proposed $14 billion merger. Under the deal, AZEK shareholders will receive $US26.45 in cash and 1.0340 James Hardie shares for each of their shares. The merger will also see James Hardie shift its primary stock listing to the New York Stock Exchange.

Chart illustrating the top gaining stocks on the ASX 200 index for the day

Banks: Australian banks have seen broad gains today.

Performance chart showing key Australian bank share movements on the ASX

Miners: Despite a lift in iron ore prices on Friday, major miners including BHP, Rio Tinto, and Fortescue Metals Group are trading lower today.

Performance chart displaying major mining company share movements on the ASX

Bottom Movers: Rare earths producer Lynas Rare Earths is among the stocks seeing declines today.

Chart illustrating the bottom losing stocks on the ASX 200 index for the day

The sector breakdown shows the current market trends influencing share prices.

Bar chart showing performance breakdown of ASX 200 sectors by percentage change

Optus Sport to Close, Premier League Rights Move to Stan

Optus Sport, the sports streaming service operated by the Australian telco Optus, has confirmed it will shut down on August 1. This follows a deal to transfer its key football broadcasting rights to Stan, the streaming service owned by Nine Entertainment.

Under the agreement, Stan will acquire the rights to the Premier League, FA Cup, J League, and National Women’s Soccer League (NWSL). The Premier League rights deal specifically covers the next three seasons. As part of the transaction, Stan will make a $20 million upfront payment to Optus and contribute significantly to the first payment of the next rights cycle for the Premier League.

Optus CEO Stephen Rue stated the decision is part of Optus’s strategy to focus on its core telecommunications business. Optus plans to communicate directly with its Optus Sport subscribers in the coming days to provide detailed information and special offers to assist their transition to Stan. The UEFA Women’s EURO 2025 championship in July is expected to be shared between the two platforms before Optus Sport ceases operations.

The move represents a significant shift in Australia’s sports broadcasting landscape and has implications for football fans and the competitive streaming market.

Australian Private Sector Credit Growth Slows

New data released by the Australian Bureau of Statistics (ABS) shows that private sector credit growth eased in May. Month-on-month growth declined by 0.2 percentage points to 0.5%, a result slightly weaker than market expectations.

Analysis from J.P. Morgan’s Jack Stinson indicates that the slowdown was primarily driven by the corporate sector. Business credit growth fell to 0.8% month-on-month, a segment known for greater volatility. In contrast, housing credit growth remained stable at 0.5% month-on-month.

Economists expect top-line private sector credit growth to remain close to 0.5% in the coming months. This data provides insight into borrowing activity within the Australian economy, suggesting a potential moderation in corporate borrowing while housing finance holds steady.

Government Forecasts Weaker Australian Resource Export Earnings

The latest June quarter resources and energy report from the federal government’s Department of Industry, Science and Resources forecasts a softening outlook for Australia’s major mining and energy exports.

The department attributes the weaker outlook to rising trade barriers negatively impacting world economic activity. Consequently, total resource and energy export earnings are projected to decline from an estimated $385 billion in 2024-25 to $369 billion in 2025-26, falling further to $352 billion in 2026-27. While higher volumes and prices for gold exports are expected to provide some offset in 2025-26, they won’t fully counterbalance the impact of weaker forecasts for iron ore and LNG prices. Gold earnings are then expected to moderate in 2026-27.

Chart illustrating historical data and future forecasts for Australian resource and energy export earnings

Commodity Specific Forecasts

The report provides detailed forecasts for key commodities:

• Iron Ore: Prices are expected to ease due to strong global supply growth and lower demand from China’s steel sector, particularly following recent production cuts. Despite a slight lift in spot prices on Friday, lower forecast prices are expected to reduce iron ore export earnings from $116 billion in 2024-25 to $105 billion in 2025-26 and $97 billion in 2026-27.
• Metallurgical Coal: Prices are forecast to remain relatively stable around US$200 a tonne in 2026 and 2027, significantly below the US$235 a tonne averaged in 2024. Export earnings are expected to remain stable around $40 billion per financial year through to 2026-27.
• Thermal Coal: Prices for power-generating coal are expected to remain subdued. Forecasts show a fall from US$135 a tonne in 2024 to US$107 a tonne in 2025, staying around US$110 a tonne in 2026 and 2027. Export earnings are projected to ease from $32 billion in 2024-25 to $26 billion in 2026-27.
• Gold: In contrast to other major commodities, the outlook for gold export earnings has been revised higher out to 2026-27. This is attributed to higher global gold prices and persistent demand from investors and central banks. Gold is tipped to overtake metallurgical coal as Australia’s third most valuable export. Earnings are forecast to peak at $56 billion in 2025–26 before falling to around $52 billion in 2026–27 as prices moderate. Rising export volumes, driven by increased production from existing operations and new projects, also contribute to this positive outlook.

China’s Manufacturing Shrinks, Construction Shows Strength

Economic data from China shows its industrial heartland continued to face headwinds in June, though the pace of contraction eased slightly. The official Purchasing Managers’ Index (PMI) for manufacturing rose to 49.7 in June from 49.5 in May. While still below the 50-mark that separates growth from contraction, the slight increase indicates a slowing rate of decline. The official NBS PMI tends to reflect activity in larger, state-owned enterprises.

Economist Zichun Huang noted that the data suggests the Chinese economy has regained some momentum, supported by rebounds in both manufacturing and construction. However, caution remains regarding the outlook for the second half of the year due to anticipated weaker export growth and a fading fiscal tailwind. The breakdown of the data showed broad-based improvements, with components for output and overall new orders picking up, and new export orders also rising, potentially reflecting a rebound in US demand following the US-China trade truce. Despite these improvements, the low level of the output price component signals persistent deflationary pressures.

The non-manufacturing PMI, which covers services and construction, showed continued growth, rising to 50.5 from 50.3. While activity in some service sectors like travel, hospitality, and logistics reportedly fell, this was more than offset by a pickup in the official construction PMI, which rose to a three-month high of 52.8. This strength in construction appears to be supported by ongoing fiscal spending on infrastructure and government efforts aimed at helping property developers complete existing projects, which seems to have eased the downturn in property construction last month.

Bupa Faces $35 Million Penalty for Misleading Health Claims

Private health insurer Bupa is facing a significant $35 million penalty after admitting to misleading thousands of its members over their private health insurance entitlements. The Australian Competition and Consumer Commission (ACCC) has initiated Federal Court proceedings against Bupa, alleging misleading or deceptive conduct that occurred over a period of more than five years.

The ACCC states that Bupa wrongly advised members they were not entitled to benefits for their entire claim, even when parts of the treatment were covered by their policy. This misconduct primarily affected claims for hospital treatment involving multiple procedures performed at the same time. In cases where some procedures were covered but others weren’t, Bupa incorrectly rejected the entire claim.

Bupa has already started compensating affected parties – including members, medical providers, and hospitals – prior to the ACCC’s legal action. To date, the insurer has paid $14.3 million covering more than 4,100 affected claims. The ACCC has accepted a court-enforceable undertaking from Bupa to continue its existing remediation program to ensure all affected parties are compensated.

ACCC Chair Gina Cass-Gottlieb commented that Bupa’s actions caused harm to consumers, with some delaying, cancelling, or going without treatment for which they were at least partially covered. She emphasized that consumers purchase private health insurance for peace of mind and certainty, which Bupa’s conduct undermined.

Reflecting on the Financial Year and Looking Ahead

With only one trading session remaining in the 2024-25 financial year, the ASX 200 is currently positioned to finish the year with a solid gain just shy of 10%. While this represents a strong return, it trails Wall Street, which is likely to finish its financial year at a new record high, and leaves the ASX about 1% below its own record closing level.

The financial year’s performance has been characterized by significant divergence across sectors. The “barbell” effect noted by some analysts highlights the strength in certain areas contrasting with weakness elsewhere:

• Strong Performers: Banks (+26%), Technology (+26%), Industrials (+20%), Consumer Discretionary (+17%).
• Weaker Performers: Consumer Staples (-3%), Miners (-6%), Energy (-13%).

The banking sector’s strong gains were notably influenced by the Commonwealth Bank of Australia (CBA), whose extraordinary 47% gain accounts for roughly 12% of the entire ASX 200 by weighting. With a market capitalisation of $310 billion, CBA is valued approximately equal to the combined value of the ASX’s second and third largest companies, BHP and NAB.

Table listing the top 10 companies on the ASX by market capitalisation

Looking ahead, AMP’s chief economist and head of investment strategy, Shane Oliver, notes that global share markets have climbed a “wall of worry” over the past six months, navigating geopolitical tensions and trade threats. While US shares hit a record high and the ASX is near its peak, volatility is likely to persist.

Chart comparing year-to-date performance of global share markets

Oliver cites several potential risks: valuations in US and Australian shares appear expensive; renewed trade tensions, particularly as a US tariff deadline approaches; increasing focus on the US public debt outlook; and potential risk to earnings expectations if economic growth slows. These factors could contribute to weakness, especially during the seasonally softer months of August and September. However, on a 6-12 month view, the outlook may improve if US policy becomes more market-friendly, central banks including the Fed and RBA continue cutting rates, and geopolitical risks remain contained.

Today’s business news brings a mix of corporate challenges, strategic shifts, regulatory action, and economic data points. While Star Entertainment navigates a potential deal collapse, the broader ASX shows resilience. Investors continue to process economic signals from Australia and China, alongside forecasts for key exports and regulatory developments like the Bupa penalty. The market outlook remains nuanced, balancing strong recent gains against potential short-term headwinds. For deeper dives into these stories and other market developments, explore our related articles.