ASX 200 kicks off week with a deep cut; AusNet soars after takeover bid

Highlights

  • The ASX 200 was trading 36.5 points or 0.49% lower at 7,367.2 during the opening session.
  • Market breadth is supporting bears for the day, with 10 out of the 11 trading in red.
  • AusNet Services has received a takeover bid from Brookfield Asset Management at AU$2.5 per share, valuing the company at AU$9.6 billion.

The Australian share market has started the week on a negative note. Tech stocks are weighing down the index, taking cues from a lower closing on Wall Street on Friday. Local miners and energy shares are also spoiling sentiments due to weaker commodity prices. Benchmark index, the ASX 200, was trading 36.5 points or 0.49% lower at 7,367.2, during the opening session.

A bear depicting a decent fall in the ASX 200

Image Source: Copyright © 2021 Kalkine Media

Global markets fell on Friday after a week of mixed economic data. The US stock market ended sharply lower in a broad sell-off on Friday, ending a busy week with strong economic data, worries over the corporate tax hike, a spike in COVID-19 infections, and possible shifts in the Fed’s timeline for tapering asset purchases.

On Wall Street, the Dow Jones fell 0.48%, to 34,584.88, while the S&P 500 lost 0.91%, at 4,432.99. The NASDAQ Composite ended the session 0.91% lower at 15,043.97.

Read More: How leading ASX-listed iron ore miners are performing amid falling iron ore prices

How has the market performed so far?

As of 10:30 AM AEST, the ASX 200 had fallen by 102 or 1.38% to 7,301.7, while the ASX All Ordinaries index was down 1.24% or 95.2 points to 7,607.7.

Top ASX 200 losers for the day were both miners – Champion Iron Limited (ASX:CIA) and Fortescue Metals Group Limited (ASX:FMG), both losing 5.68% and 5.5%, respectively. A few stocks trying to hold the index from falling were AusNet Services Limited (ASX:AST) and Ingenia Communities Group (ASX:INA), both gaining 19.95% and 2.05%, respectively.

The market breadth is supporting the bears for the day, with 10 out of the 11 trading in red. The Metals and Mining sector has fallen 1.3%. The only sector trading in green is the Utilities sector, with an attractive 2.53% gain.  

Newsmakers

Real estate investment company, Charter Hall Group WALE REIT (ASX:CLW), along with a Charter Hall managed trust has agreed to acquire a 50% stake in ALE Property Group through a consortium. The acquisition deal is expected to be executed in mid-December 2021.

Australian energy company, AusNet Services Limited (ASX:AST), has received a takeover bid from Brookfield Asset Management at AU$2.5 per share, valuing the company at AU$9.6 billion, and will be reduced to the extent of any dividend being declared to the shareholders before the deal.

ASX Stocks in news today

Image Source: Copyright © 2021 Kalkine Media

Infrastructure company, Transurban Group Limited (ASX:TCL) confirms that Sydney Transport Partners (STP)  has acquired the remaining 49% stake at WestConnex for a total of AU$11.1 billion from the NSW government.

Media company, HT&E Limited’s (ASX:HT1) Soprano, has terminated negotiation talks with Link Mobility Group Holdings over a sale. HT&E holds around a 24.9% stake in Soprano. Earlier in May 2021, shareholders of Soprano agreed to sell 100% of their shares to Link.

Energy producer, Calima Energy Limited (ASX:CE1) reported its operating netback of AU$2.8 million for August 2021, an increase of 9% over previous month. The average sales volume for August 2021 increased 202 boe/d to 3,493 boe/d.

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