If Metcash raises cash, will it provide opportunities?

The Australian Consumer Staples sector has struggled over recent years, but as MM looks to position portfolios more defensively, it’s been on our radar of late, i.e. people have to eat. With interest rates set to fall through 2024/5, inflation under control and supply chain issues in the rearview mirror, the outlook has improved for the sector. The peak cost of living has passed, with spending growth on the horizon, helped by solid immigration, with supermarkets  likely to be a key beneficiary.

• We have been advocating a more defensive stance through 2024, with the Consumer Staples Sector fitting the bill perfectly.