The Aussie market is firmer to start the new week with the ASX 200 adding 10 points or 0.14% to 7,318 around midday on Monday. The benchmark index has eased from its opening highs where it had climbed as much as 35 points or nearly 0.5% higher.
While the broader market is higher there are actually more sectors lower than higher. The standout though has been industrials with the sector lifting 4.6%. The energy and utilities sectors are also improving by more than 1% with materials slightly ahead so far. Communications are leading decline along with consumer discretionary while financials and healthcare are weighing.
Sydney Airport (SYD) is the biggest mover among individual stocks and is adding ~14 points alone to the ASX 200 index. The stock surged 38% at its peak this morning and is still 30% higher at lunch on news of a proposed $22.3 billion takeover by a consortium including several infrastructure companies and super funds. The offer is $8.25/security with SYD closing at $5.81 on Friday, a premium of 42% from that level. The SYD board is still deciding whether it will accept the offer as it is still below what SYD was trading at pre-COVID last year.
A2 Milk (A2M) is lifting 2.8% after the New Zealand Overseas Investment Office has approved A2M’s proposed acquisition of a 75% interest in Mataura Valley Milk (MVM), a dairy nutrition business, located in Southland, New Zealand. The transaction is now set to be completed by the end of July. A2M says the proposed acquisition “will provide the opportunity for A2M to participate in nutritional products manufacturing, provides supplier and geographic diversification, and strengthens our relationship with key partners in China”.
On the completion of a strategic review, Tabcorp (TAH) has announced it intends to demerge its Lotteries & Keno business into a separate ASX-listed company. The move is said to maximise shareholder value through more focussed management and operating profile more aligned with core operations. TAH shares are down 4.7%.
Crown Resorts (CWN) is 1% softer following a trading update where it expects to report a statutory net loss for FY21 due to the impacts of COVID and related closures.
Lastly, the AUD is buying 75.18 US cents
Published by CommSec