Hot Stocks: Dexus, AFT Pharmaceuticals, Australian Agricultural Company

Wall Street suffered steep losses on Wednesday as concerns over the ballooning US deficit and surging Treasury yields triggered a broad sell-off. The Dow Jones dropped 816 points (1.9%) to 41,860, while the S&P 500 and Nasdaq fell 1.6% and 1.4% respectively, ending their recent winning streaks. Yields on long-term US government bonds soared — with the 30-year surpassing 5.09% and the 10-year hitting 4.59% — after a weak 20-year bond auction and fresh doubts about America’s fiscal outlook. The moves reflect mounting investor anxiety over the cost of financing US debt, particularly as Congress battles over President Trump’s proposed “One Big Beautiful Bill Act.”

The 1,000-page bill aims to make the 2017 Trump tax cuts permanent and introduce sweeping new tax breaks, including income tax exemptions on tips, overtime, and some Social Security payments, while expanding deductions and credits. But the Congressional Budget Office estimates the bill would add US$3.8tn to the deficit over the next decade, with only US$1tn in offsetting cuts — mostly from Medicaid, SNAP, and green energy rollback. Millions stand to lose healthcare and food assistance, while high-income households would see gains of up to 4%. Internal Republican divisions have stalled progress, and the bill’s chances in the Senate remain uncertain. Amid warnings from Moody’s, the IMF, and investors like Ray Dalio, the market reaction underscores deepening fears that US fiscal dysfunction is driving up borrowing costs and threatening economic stability.

The Australian Agricultural Company (ASX:AAC) reported a FY25 operating profit of $58.4m and record operating cashflow of $27.1m, marking its third straight year above $50m in profit. While statutory net profit remained slightly negative at –$1.1m, this was a sharp improvement on the prior year’s –$94.6m loss, primarily due to smaller mark-to-market declines in herd value. Total revenue rose to $387.9m, driven by a 21% increase in meat volumes and 38% growth in cattle sales, underpinned by the full-year impact of AACo’s Goonoo facility expansion. Premium beef brands Westholme, Darling Downs, and 1824 contributed to growth despite price pressures from global oversupply and inflation, particularly in the first half. AACo maintained stable herd numbers while containing inflationary cost increases, and also advanced its sustainability agenda with registration of a soil carbon project and investment in the Zero Net Emissions Ag CRC. With gearing at 24% and net tangible assets up 2% to $2.55 per share, the company enters FY26 with a refreshed strategy focused on “Better Beef”, land value creation, and strategic partnerships.

AFT Pharmaceuticals (ASX:AFP) reported record revenue of NZ$208.0 million for the year ended 31 March 2025, a 6% increase driven by strong growth in its core Australasian markets and a second-half recovery in Asia and international sales. While operating profit fell 27% to NZ$17.6 million due to one-off impacts—including customer destocking and a doctors’ strike in Korea—as well as lower licensing income, underlying product sales and royalties rose 11%, and net profit after tax declined 23% to NZ$12.0 million. Australian revenue surged 17% to NZ$127.1 million, and AFT expanded its global footprint with new launches and operations across the US, UK, EU, South Africa, and Asia. Its R&D program now spans 13 projects, including injectable therapies targeting billion-dollar markets, with several products entering commercialisation. AFT declared a final dividend of 1.8 cents per share and reaffirmed its FY26 operating profit guidance of NZ\$20–24 million, maintaining its trajectory toward a NZ$300 million revenue target by FY27.

Dexus (ASX\:DXS) has obtained an injunction from the New South Wales Supreme Court temporarily restoring governance, voting, and information rights to its Dexus Bloc Shareholders in Australia Pacific Airports Corporation (APAC), which had been suspended following a contested notice from APAC’s board. The injunction also prevents any finalisation of the shareholding’s valuation or forced sale while the dispute is ongoing. A full hearing is scheduled for 11–12 August 2025. In securing the injunction, Dexus agreed to pay damages to affected parties if its legal challenge ultimately fails. The company, which manages a A$53.4bn portfolio across real estate and infrastructure, will provide further updates as required.