Domain (ASX:DHG) and Nine (ASX:NEC) Stocks Surged After CoStar's Takeover Announcement: What It Means for ASX200

May 09, 2025 12:16 PM AEST | By Team Kalkine Media

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Domain (ASX:DHG) and Nine (ASX:NEC) Stocks Surged After CoStar's Takeover Announcement: What It Means for ASX200 — Image source: shutterstock

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Highlights

Domain (DHG) shares jumped by nearly 3%, driven by the CoStar deal.

Nine (NEC) saw a 5% rise, reflecting the strategic value of its stake in Domain.

This development strengthens both companies' positions within the S&P/ASX200.

Shares of Domain (ASX:DHG) and Nine (ASX:NEC) experienced a notable uptick on Friday after Domain revealed it had finalized a deal with CoStar Group to acquire its shares at $4.43 each. The announcement sparked a rally in both companies' stocks, lifting Domain by 2.9% and Nine by 5%. This marks a significant increase for both companies, particularly Domain, which has already seen a massive 70% gain in its stock price this year.

Domain’s increase was particularly impressive, as it continues to capitalize on its growth as a leading real estate platform. The stock surged around 40% when CoStar’s takeover proposal was first disclosed in February, indicating investor confidence in the potential of this deal to reshape the company’s future.

Meanwhile, Nine (NEC), which holds a considerable stake in Domain, also benefited from the announcement. As the publisher of well-known outlets like The Australian Financial Review, Nine has emphasized that this transaction reflects the strategic value of its investment in Domain. The company’s strong performance suggests that the market agrees with this assessment, positioning Nine as one of the top performers on the S&P/ASX200 for the day.

This deal between Domain and CoStar also shines a spotlight on the evolving dynamics of the real estate sector, with CoStar’s resources providing Domain with enhanced capabilities for further expansion. As companies like Domain (DHG) continue to dominate the real estate market, it’s important to consider how they compare to other notable ASX dividend stocks. Real estate companies such as Domain are becoming increasingly attractive to investors looking for reliable returns.

For those tracking the broader market, the stock movements of both Domain (DHG) and Nine (NEC) are a key indicator of the strength of the S&P/ASX200. This index, which represents the top 200 companies listed on the Australian Securities Exchange, is often seen as a benchmark for Australia's overall stock market performance. As Domain’s and Nine’s shares surge, the overall health of the S&P/ASX200 appears to remain robust.

To explore more on the S&P/ASX200 or ASX dividend stocks, feel free to visit detailed insights at S&P/ASX200 and ASX dividend stocks. These platforms provide comprehensive information to help investors stay informed and make well-guided decisions in the ever-evolving market landscape.

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