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The Aussie market is mostly trading sideways at lunch on Friday with the ASX 200 dipping 9 points or 0.12% to 7,046 and having swung between small gains and losses. The index opened at its intraday lows following reversals on Wall Street overnight as investors reacted to news that US President Biden could almost double the capital gains tax rate for wealthier Americans.

The consumer sectors are falling hardest while IT, materials and energy also add to broader losses. The
financials sector is slightly higher while communications and property are rising most.

Today’s declines are adding to the overall softness on the local market this week with the benchmark index on track for a 18 points or 0.25% decline for the week. It would make it the first weekly decline in five weeks.

There was a fair it of company news as well. Kogan.com (KGN) is one of the biggest movers with an 11% decline. The online retailer provided the market with a quarterly business update. The company saw a surge in demand during 2020 due to the COVID-19 pandemic but it noted that the start of 2021 has seen demand drop and inventory levels higher, increasing storage costs and eating into profitability.

Wealth manager, AMP Limited (AMP) was climbing as much as 5%, now 1.7% higher after it announced that
instead of selling its AMP Capital Private Markets business to Ares Management, after talks ended, and would instead demerge into two separate entities. It is likely to complete the split by the first half of 2022. AMP fell to 12 month lows yesterday on its quarterly update yesterday as it continued to see cash outflows from AMP Capital and Wealth Management units.

Accent Group (AX1) is 7% firmer as it announced the acquisition of youth apparel brand, Glue Store for $13 million. The sale includes its retail and wholesale distribution businesses. AX1 currently operates footwear chains such as the Athlete’s Foot and Hype DC.

The Aussie Dollar has fallen against a stronger US dollar and at one stage had fallen below 77 US cents. The local currency is now at 77.2 US cents.

Published by CommSec