ASX 200 edges higher at opening tick; IT stocks lead rally

Highlights

• The benchmark ASX 200 index surged 0.51% to 7,506.2 in the first 15 minutes of opening trade.
• US stocks rose on Tuesday, with the frontline indices Dow Jones and S&P 500 notching up their fourth straight session of gains.
• Nine out the 11 sectors were trading higher, setting a bullish tone today.

The Australian share market opened higher on Wednesday, primarily supported by gains in the IT and real estate space, as risk-on approach came back into the market after talks between Ukraine and Russia progressed. The benchmark ASX 200 index surged 0.51% or 37.8 points to 7,506.2 in the first 15 minutes of opening trade.

Image Source: © 2022 Kalkine Media®

Equity markets across the globe ended higher on Tuesday, while and oil prices dived more than US$3 per barrel at the trough, as market participants took into account the hopeful progress in negotiations between Russia and Ukraine.

US stocks also rose on Tuesday, with the frontline indices Dow Jones and S&P 500 notching up their fourth straight session of gains. The Dow Jones Industrial Average closed 0.97% higher at 35,294.19, while the S&P 500 was up by 1.23% to 4,631.6. The NASDAQ Composite ended the session 1.84% up at 14,619.64.

How has the market performed so far?

By 11:00 AM AEDT, the ASX 200 was trading 0.59% or 43.7 points higher at 7,508, while the ASX All Ordinaries index was up 0.54% or 41.9 points to 7,787.9. The A-VIX was down 2.63% to 12.63.

Data Source: ASX (as of 30 March 2022, 11:00 AM AEDT)

Image Description: Top 5 ASX gainers and losers

Image Source: © 2022 Kalkine Media®

Coming to the top ASX 200 gainers, Unibail-Rodamco-Westfield (ASX:URW) and Life360 Inc (ASX:360) were the top gainers, surging 7.23% and 6.48% higher, respectively. On the flip side, Incitec Pivot Limited (ASX:IPL) and Gold Road Resources (ASX:GOR) were the top losers, falling 5.25% and 3.92%, respectively.

On the sectoral front, nine out the 11 sectors were trading higher, setting a bullish tone today. The Information Technology sector was leading with a 3.51% gain, followed by a 1.51% rally in the A-REIT space. The materials and energy sectors were down for the day.

Read More: JHX, SQ2 & DXS: How have these ASX blue-chip stocks fared this year?

Newsmakers

1. Regal Investment Fund (ASX:RF1)

• VGI Partners, Regal Funds Management Pty Limited and Regal shareholders have entered into a merger agreement.
• Under the agreement, VGI would acquire a 100% stake in Regal in consideration for new issue of VGI shares to existing Regal shareholders
• This merger will combine two of the most successful and recognised hedge funds in Australia, but the deal is still subject to approval from VGI shareholders.

2. Fortescue Metals Group Limited (ASX:FMG)

• Shares of FMG have been temporarily paused for trading on the ASX.
• Till now, there has been no official statement by the company as to why the trading has been paused.
• FMG shares last closed at AU$19.49 on 29 March 2022.

3. Eagers Automotive Limited (ASX:APE)

• The company has entered into an agreement to acquire a portfolio of dealerships and associated properties of WFM Motors Pty Ltd in Canberra, ACT.
• The total purchase price would be approximately AU$205 million.
• The annual turnover of the dealership group is approximately AU$450 million.

4. The Star Entertainment Group Limited (ASX:SGR)

• The company has been served by Slater & Gordon with a statement of claim for a securities class action in the Supreme Court of Victoria.
• The claim alleges The Star failed to comply with continuous disclosure requirements and engaged in misleading or deceptive conduct from 29 March 2016 to 16 March 2022.
• The board intends to defend the proceedings.

5. Charter Hall Group (ASX:CHC)

• The group has signed an MoU to submit a proposal to acquire all of the stapled securities in Irongate Group and to sell certain assets of Irongate to 360 Capital.
• On implementation of the transaction, the Group will receive an all-cash consideration of AU$92 million for its 48.44 million Irongate stapled securities.
• 360REIT will receive AU$165.3 million for its 86.98 million Irongate stapled securities.

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