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The Australian sharemarket has had a mixed start to the final trading day of May, with the ASX 200 briefly hitting a fresh record high on the open before falling back at midday. For the first time in14 years, our market is still set to extend its winning streak to an eighth straight month.

Strong gains from healthcare stocks, Fortescue Metals (FMG), Rio Tinto (RIO), gold miners, Telstra (TLS) and Domino’s (DMP) are offsetting losses from energy stocks, travel companies, Computershare (CPU), Link (LNK) and Aristocrat Leisure (ALL).

Accent Group (AX1) has completed the acquisition of retail chain Glue Store together with the wholesale and distribution brands of Next Athleisure. AX1 operates The Athlete’s Foot, Platypus Shoes and Hype DC.

Domain (DHG) is no longer seeking to potentially acquire shares in Torrens Group Holdings Ltd that owns PEXA. PEXA is expected to make its Australian sharemarket debut in late June, with an enterprise value of ~$3.3bn.

 

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Dexus (DXS) has raised its guidance for distribution growth. The property group now expects FY21 distribution per security growth of ~3 per cent. Group CEO Darren Steinberg said this is partly “…a result of better than expected outcomes across the underlying property portfolio…”

Software group Nuix (NXL) is down by ~15 per cent after delivering a guidance downgrade this morning for the second time in six weeks. Chief Executive Rod Vawdrey said that “…there’s a nearterm level of uncertainty regarding the precise timing, shape and scope of some large and anticipated customer contracts coming to fruition in the next few weeks”.

China’s key purchasing managers’ indexes were released earlier, with a read of 51 largely in-line with market expectations. Readings above 50 indicate expansion in China’s manufacturing activity. A separate reading of manufacturing activity will be released on Tuesday at 11:45am AEST.

2.2bn shares have changed hands so far worth $1.7bn. 651 stocks are up, 659 down and 379 are unchanged.

This is set to be a big week for markets. The Reserve Bank is widely expected to keep the cash rate on hold at 0.1 per cent, OPEC and other major oil producers are set to hold a key meeting tomorrow which could impact oil prices, an update on Australia’s economic growth will be issued on Wednesday and three stocks are pencilled in to make their ASX debuts.

Tonight, both US and UK markets will shut to observe public holidays.

Published by CommSec