- Blue-chip miner Fortescue Metals declined as the stock turned ex-dividend today.
- HealthCo Healthcare and Wellness REIT made a weak debut on the ASX.
- Hansen Technology’s shares plunged after BGH Capital withdrew its non-binding acquisition proposal.
- Magellan Financial Group’s shares dropped following a business update.
- Suncorp Group’s shares rose as Suncorp Bank ventured into the buy-now-pay-later (BNPL) space.
The Australian share market witnessed a sharp sell-off on Monday as ex-dividend stocks and weak global cues weighed on market sentiment. Benchmark index, the ASX 200, declined as much as 1.1% by mid session, amid broad-based selling. Iron ore miner Fortescue Metals and healthcare firm Pro Medicus topped the losers’ chart, while software firm Appen and buy now, pay later (BNPL) player ZIP Co led the fall.
Here are 10 stocks that are making a splash on the ASX today:
Fortescue Metals turns ex-dividend
Blue-chip miner Fortescue Metals (ASX:FMG) emerged as the top loser on the ASX pack by falling as much as 10.8% to AU$18.59 as the stock turned ex-dividend today.
The world’s fourth-largest iron ore miner had set September 7 as the record date for dividend payment, while the payment date is 30 September 2021. The company in its earnings release on 29 August announced to pay a final dividend of AU$2.11 per share, up from AU$1 a share last year.
HealthCo Healthcare REIT surges on IPO debut
HealthCo Healthcare and Wellness REIT (ASX: HCW) made a stellar debut on the ASX today, rising as much as 15% to AU$2.3 in opening deals.
Fund manager Home Consortium’s real estate investment trust had raised AU$650 million at AU$2 a share, which was the second-largest initial public offering (IPO) of this year. This is the first healthcare property trust which got listed on the domestic exchange.
This is the third IPO in three years by the fund manager Home Consortium, after the listings of Home Consortium in October 2019 and HomeCo Daily Needs REIT in November last year.
NRW Holdings’s subsidiary secures contract extension
Mining and civil construction services provider NRW Holdings’ (ASX: NWH) shares tumbled 5.5% to AU$1.795 following a business update.
The company’s wholly owned subsidiary, Golding Contractors, has inked a five-year contract extension with Southern Cross Fertilisers for its Phosphate Hill operation. The mining contract at Phosphate Hill will be valid till 6 September 2026, while its value is estimated to be between AU$110 million and AU$120 million over the term.
BGH Capital withdraws Hansen’s acquisition proposal
Shares of Hansen Technology (ASX: HSN) plunged 14.9% to hit an intraday low of AU$5.25 after BGH Capital withdrawn its non-binding acquisition proposal.
The software and services company in an ASX filing said that Australian private equity firm BGH has decided to withdraw its unsolicited proposal to acquire Hansen. BGH Capital had proposed to acquire all of the outstanding shares in Hansen by the way of a scheme of arrangement for a price of AU$6.50 cash per share.
Magellan Financial’s FUM rises in August
The share price of Magellan Financial Group (ASX: MFG) dropped as much as 2.6% to AU$42.73 after the company issued an update on funds under management (FUM) for August.
The global equities-focused investment management firm has reported 0.3% growth in Retail FUM at AU$31.5 billion. The institutional FUM rose 1% to AU$86.4 billion. Meanwhile, global equities grew by 0.6% to AU$88.5 billion, infrastructure equities surged by 1.3% to AU$19.8 billion and Australian equities climbed by 1.3% to AU$9.6 million.
Richard Murray joins as CEO of Premier Investments
Premier Investment’ (ASX: PMV) shares slipped 2.1% to AU$27.54 after the company said that Richard Murray had commenced his new role as the chief executive officer (CEO).
Murray joined the office a month ahead of his scheduled time. The former CEO of JB Hi-Fi was expected to begin his new role on October 4.
As per the company, all other material terms of his employment with Premier, as disclosed in the release dated April 28, remains unchanged.
Washington H. Soul Pattinson expects to report robust earnings in FY21
Shares of Washington H. Soul Pattinson (ASX: SOL) fell 3.7% to AU$34.64 even after the investment firm expects to report robust earnings in the 2021 financial year.
The company anticipates its net profit after tax to nearly double to around AU$336 million, compared to AU$170 million in the prior year. The key drivers of the company’s growth are – the capital value of the portfolio, growing yield and strong earnings contributions from its group companies, New Hope, Brickworks and Round Oak. The company is expected to release its full-year results on 23 September 2021.
BWX updates on Flora & Fauna acquisition
Shares of natural beauty company BWX (ASX: BWX) rose 2.2% to AU$5, paring opening loss after it issued an update on the acquisition of Flora & Fauna.
The company said that it had finalised the total consideration paid for its acquisition of Flora & Fauna, a leading Australian curated online retail platform exclusively focused on vegan, ethical and sustainable products.
In May this year, BWX had announced to buy Flora & Fauna for a price between AU$27.9 million to AU$30.8 million, based on the calculation of Flora’s actual FY21 revenue. The company now confirmed it paid AU$28.1 million for the acquisition.
Suncorp Banks enters BNPL space
Shares of Suncorp Group (ASX: SUN) rose 0.5% to AU$12.73 after Suncorp Bank ventured into buy-now-pay-later (BNPL) space in association with Visa, the global leader in digital payments.
The bank is offering a new interest-free BNPL product which can be used to make payments via physical and digital Visa debit cards. The BNPL offering will be available for minimum purchases of AU$50 and higher, which will be split into four fortnightly instalments. The service will be rolled out for Suncorp customers from November through the Suncorp app.
Pinnacle Investment announces dividend reinvestment plan
The share price of Pinnacle Investment Management (ASX: PNI) dipped 1.1% to AU$16.25 despite announcing underwritten Dividend Reinvestment Plan (DRP).
The company said the Dividend Reinvestment Plan for the FY21 final dividend will be fully underwritten and the funds raised will be primarily used to acquire a further 10% of Coolabah Capital Investments (CCI), taking PNI’s stake to 35% in the company. The DRP applies to the 17-cent-per share final dividend declared for the year ended 30 June 2021.