The Australian sharemarket started the week on a negative note with the ASX 200 index losing 12.5pts or 0.17 percent to 7139.3. The market got off to a positive start but faded on the back of US futures turning negative. Four (of 11) sectors lost ground. Materials and energy sectors weighed most as Covid-19 cases continued to lift in Beijing. However, gains from healthcare and utilities helped to the limit the losses.
In company news, Lithium developer Lake Resources (LKE) advised that a ‘contract amendment has been signed
to resolve the dispute between Lilac Solutions and Lake Resources. This amendment allows the teams to reset the
relationship and jointly focus on delivery of the Kachi Project.’ LKE closed 1 per cent lower.
Sandfire Resources (SFR) advised that it has successfully closed the institutional component of its 1 for 8.8 pro-rata
accelerated non-renounceable entitlement offer. The Institutional Entitlement Offer will raise approximately A$147
million (subject to reconciliations) at an offer price of A$4.30 per share. SFR added 1.5 per cent as it resumed trade.
Insurance Australia Group Limited (IAG) announced the offer of Capital Notes 2 to raise $400m with the ability to
raise more or less. The Offer is part of IAG’s capital management strategy and the proceeds will be used for general corporate purposes and to refinance existing Capital Notes 1. IAG shares closed flat.
Link Administration Holdings (LNK) has completed the sale of 10 per cent of its existing 42.77 per cent shareholding
in PEXA Group (PXA). This represents 4.3 per cent of PEXA’s issued capital for total net proceeds of $101.9m. It
intends to use the proceeds to pay down debt. LNK closed 1.2 per cent lower and PXA lost 3 per cent.
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Ahead in the US, the national activity index from the Federal Reserve Bank of Chicago will be released. The index held at 0.1 in September, suggestive of only modest economic growth. Locally, the RBA governor will be delivering a highly anticipated speech tomorrow in Melbourne.
Today, 3.4bn shares were traded, worth $6.6bn. 597 stocks rose, 743 fell & 450 finished unchanged.
Originally published by CommSec
