Home / Daily Market Update / ASX edges ahead despite tech plunge, Metcash up 6.2%

BNPL rout sinks market, Boral sells fly ash, Bapcorp chief out
 
The S&P/ASX200 (ASX: XJO) managed to eke out a tiny gain of just 4 points on Monday overcoming a mixed overseas lead.
 
This was despite significantly selling pressure facing the technology sector, but more specifically Buy Now Pay Later groups including Afterpay (ASX: APT) and Zip Co (ASX: Z1P).
 
The sector fell 2.2 per cent behind a 10 per cent fall in Zip shares, 4 per cent in Afterpay and 16 per cent in bit player Sezzle (ASX: SZL).
 
There was no clear trigger for the selloff suggesting regulatory change may lie ahead.
 
On the positive side the utilities and consumer staple sectors both gained close to 2 per cent.
 
Boral (ASX: BLD) was a highlight, adding 1.6 per cent after announcing they had entered into an agreement to sell their US building products and fly ash business to Eco Material Technologies for A$1.1 billion.
 
The deal brings proceeds to $4 billion and growing likelihood of a significant buy back in the new year.
 
Shares in car parts dealer Bapcorp (ASX: BAP) continued to tank, falling another 5.6 per cent, after the board have effectively forced CEO Darryl Abotomey to leave the business three months ahead of time due to a ‘marked deterioration’ in their relationship.
 
Metcash dividend jumps, CSL loses border case, Sigma profit slumps
 
Shares in independent grocer retailer Metcash (ASX: MTS) topped the market, adding another 7.3 per cent after announcing a stronger than expected dividend, up 31 per cent on the prior year.
 
Revenue for the group grew just 1.3 per cent to $7.2 billion, however, scale and supply chain advantages resulted in a 14 per cent boost to the earnings line, hitting $231 million.
 
Shares in CSL (ASX: CSL) remain under selling pressure, falling 0.5 per cent after announcing they had lost a case against the US Government about recent border closures with Mexico.
 
In a joint request with a key competitor, the group had challenged the ban on people coming over the border from Mexico to the US which had a significant impact on blood plasma collections that represent 85 per cent of CSL’s business.
 
The flow on impact was a lack of blood donations for live saving therapies, according to management.
 
Shares in Sigma Healthcare (ASX: SIG) fell heavily, down 7.6 per cent after downgrading earnings guidance for the financial year.
 
They have lowered the expectation of 5 per cent growth from 2020 levels to a 10 per cent contraction, blaming the roll out of new IT systems.
 
Shares in Magellan (ASX: MFG) fell despite reporting a $1.6 billion increase in funds under management to $116.4 billion.
 
Market rallies on triple threat, Alibaba surges, China loosens, Moderna falls
 
Global benchmarks are set to be buoyed on Tuesday after the US market surged to begin the week.
 
The Dow Jones and S&P500 gained 1.9 per cent and 1.2 per cent respectively, and whilst the Nasdaq was weaker, up 0.9 per cent, in comparison the positive sentiment is expanding once again.
 
The driving news appeared to be signs that the Omicron variant is less severe than Delta, with no surge in hospitalisations yet.
 
Whilst positive news for the world, it was negative for Moderna (NYSE: MRNA) and it’s virus treatment with shares falling over 13 per cent on the news.
 
Shares in Alibaba (NYSE: BABA) are beginning to recover once again, after one of the founders and CFO, Maggie Wu, announced she would be stepping down to make room for new blood at the top.
Shares surged over 10 per cent on the news.
 
Sticking with China, it appears the government is taking the opposite view of the rest of the world, with the central bank announcing a reduction in the ‘required reserve ratio’ being deposits that bank must hold.
 
This is set to offer more flexibility for more growth in lending and credit, and potentially an acceleration of the economy.