Home / Daily Market Update / ASX closes above 7300 for the first time

ASX closes above 7300 for the first time

Daily Market Update

ASX moves higher, as every sector but energy improves, Woolworths’ takeover to go ahead  

The ASX 200 (ASX: XJO) capped off another positive day on Thursday despite a fall in the oil price sending the entire sector down 1.1%.

Every other sector was higher, barring materials, which finished flat, with real estate and IT once again leading the way, up 2.3% and 2.0% respectively.

  • The end of Melbourne’s lockdown has clearly seen improved sentiment towards retail assets, with Vicinity Centres (ASX: VCX) up another 1.5% on Thursday.

    Woolworths Group (ASX: WOW) received positive news on its proposed purchase of wholesale food distributor PFD Food Services, with ASIC approving the purchase.

    PFD purchases and distributes foods for around 15% of the market with Woolworths taking a 65% share of the company.

    This looks akin to Amazon Inc. (NASDAQ: AMZN) for the grocery behemoth — a clear positive yet shares increased just 0.8%.

    Topping the market on Thursday was CRM provider Iress Ltd (ASX: IRE), which owns the XPLAN platform used by financial advisers.

    IRE shares finished 16.8% higher despite the company confirming it had not received any direct approach regarding a takeover.

    Boral says no, Austal hit by court proceedings, travel under the weather 

    The board of Boral Ltd (ASX: BLD) continues to fight off one of the more intriguing takeover deals in recent memory.

    Seven Group Holdings (ASX: SVW) had previously acquired as many shares as was legally allowed, around 19.9%, before lobbing a $6.50 bid for any remaining shares in BLD.

    This is below the current BLD share price, yet some shareholders have accepted, whilst Boral’s on market share buyback is reducing the shares on issue and therefore SVW’s share of the company. Watch this space.

    According to an independent expert, Boral’s true value is around $8.25 per share.

    Popular defence and shipbuilding company Austal Limited (ASX: ASB) fell 3.5% after ASIC lodged civil proceedings against the group.

    The proceedings focus on historical matters concerning the company’s market disclosures relating to the Littoral Combat Ship program.

    Elsewhere, travel companies were hit after news that a Melburnian had fled and potentially exposed both NSW and Queensland. Flight Centre Travel Group Ltd (ASX: FLT) fell 2.6%.

    US moves to record despite inflation data, banks fall, tech rises 

    All three US indices moved higher on Thursday despite experts’ worse fears of a spike in inflation coming true.

    The Nasdaq led the way, adding 0.8%, as big technology names continue to regain momentum. The S&P 500 finished 0.5% higher and the Dow Jones just 0.1%.

    All eyes were on this year’s inflation data which the Federal Reserve had consistently predicted will be short-lived and due to base effects compared to the beginning of the pandemic when demand for everything went to zero.

    Inflation hit 5% in March from 4.2% in April, with the core measure that excludes more volatile food and fuel prices growing 3.8%. Both were records, the first highest for 13 years and the second for 29 years.

    A closer look confirmed that as much of a third of the increase was due to a 7% rise in used car prices.

    Seven of the S&P 500’s 11 sectors finished higher with predicted beneficiaries of higher inflation, being banks like JP Morgan (NYSE: JPM) and Morgan Stanley (NYSE: MS) actually the biggest detractors.

    Overnight, Netflix (NASDAQ: NFLX) continued its expansion announcing the launch of Netflix.shop where users can buy branded goods associated with their favourite TV shows.

    The Inside Adviser


    Related
    Iron-ore prices push higher, bolstering Australian miners

    The S&P/ASX 200 Index rose by 0.5 per cent, driven by the increase in iron ore price. This surge propelled Rio Tinto up by 1.7 per cent, while Fortescue advanced by 0.4 per cent, and BHP increased by 1.5 per cent. The materials sector led gains, adding 1 per cent, followed closely by the technology…

    James Dunn | 19th Apr 2024 | More
    AI boom supports ASX, Block Payments profit jumps, Next DC hits all-time high

    The Australian sharemarket posted a positive finish to the week, gaining 0.4 per cent, but with the S&P/ASX200 still managing to lose 0.2 per cent across the five days. The technology sector was buoyed by NVIDIA’s massive result overnight, with data centre operator Next DC (ASX:NXT) adding 1.9 per cent and hitting another all-time high…

    Drew Meredith | 26th Feb 2024 | More
    ASX weakness on earnings, Woolies CEO to step down, CSR in European takeover bid

    Both Australian benchmarks fell 0.7 per cent on Wednesday, as weakness in the consumer staples sector, which fell 4.3 per cent, offset gains in technology, which added 2.2 per cent. Woolworths (ASX:WOW) fell 6.6 per cent after the company announced the departure of long time CEO Brad Banducci after a TV outburst, with the company…

    Drew Meredith | 22nd Feb 2024 | More
    Popular
  • Popular posts: