Home / Daily Market Update / ASX ends unbeaten run, approvals galore, Redbubble, Magellan fall

 
Markets couldn’t overcome weaker sentiment today, initially trading higher but ultimately falling 0.3 per cent and breaking the 2 per cent gains in recent days.
 
Only two sectors posted positive returns, being utilities and healthcare, which gained 0.4 and 0.2 per cent respectively with the rest falling into negative territory.
 
The worst was the energy sector, down 1.1 per cent as both OilSearch (ASX: OSH) and Santos (ASX: STO) fell more than 1 per cent despite the PNG Government finally approving their proposed merger.
 
The Buy Now Pay Later sector took another hit, with the Treasurer suggesting the terms that restrict retailers from passing on the cost of BNPL payment processing may be removed.
 
The smallest player, Laybuy (ASX: LBY) was the hardest hit, falling 11.4 per cent with Zip Co (ASX: Z1P) also down 4.2 per cent.
 
Magellan (ASX: MFG) simply cannot find a bottom with the company hitting a two year low as traders exit the company following news of the CEO’s exit and CIO’s recent separation.
 
Shares fell 4.9 per cent despite the performance of the underlying funds continuing to improve.
 
Seven gets Prime, Sydney Airport deal approved, Cleanaway gets dumps, ANZ sued
 
The regulators had a busy day on Thursday with a swathe of positive and negative announcements.
 
The first was news that ANZ Bank (ASX: ANZ) was being sued for $25 million for failing to properly pay customers under the terms of their mortgage packages over the last decade and even post the Royal Commission.
 
Sydney Airport (ASX: SYD) looks set to be taken over, with the ACCC approving the sale to a consortium of private equity and pension funds.
 
Seven West Media (ASX: SWM) shares fell 3.9 per cent as the ACCC approved their deal to acquire Prime Media, with the regulator looking beyond the oligopolistic nature of the sector towards the competition coming from digital avenues in waving through the deal.
 
Rubbish collection and recycling group Cleanaway (ASX: CWY) had their Plan B approved by the ACCC, with the acquisition of two rubbish dumps and five transfer stations in NSW for $510 million receiving approval.
 
Origin Energy (ASX: ORG) gained 0.4 per cent, outperforming the energy sector, as ConocoPhillips used their pre-emptive rights to take up the 10 per cent share in the APLNG asset that was set to be sold.
 
Jobs growth also appears to be slowing, with a gain of just 0.2 per cent in the last fortnight, a significant fall from the 1.5 per in the prior two-week period.
 
Market stutters ahead of inflation, massive neobank lists, Evergrande in default
 
US markets stumbled once again as they neared another record high, with the Nasdaq down 1.7 per cent and the S&P500 falling 0.7 per cent.
 
The Dow Jones remains supported by popular recovery trades including energy and travel, finishing flat.
 
That said, the news flow is clearly slowing in the lead up to Christmas with all eyes on tomorrow’s inflation data.
 
In the meantime, first time unemployment claims hit a 52 year low as closed borders see more people enter the workforce.
 
The US Senate appears to be nearing changes to its policies that will allow a more straightforward raising of the debt limit rather than the devils advocate approach taken today.
 
China Evergrande (HKG: 3333) has officially been called a ‘defaulter’ by Fitch Ratings, but it looks set to avoid a systemic sell-off and credit market crunch.
 
The government has been preparing for this with significant policy support, with bond holders naturally set to take a significant haircut on their investment; shares gained 4 per cent on the news.
 
Nu Holdings (NYSE: NU) gained over 15 per cent after finally listing in New York.
 
Nu Bank is one of the largest fintech companies in the world, focusing almost solely on delivering loans, credit cards and daily bank accounts to the Brazilian market.
 
The company attained a valuation of US$41 billion on listing.