ASX 200 snaps three-day losing streak as tech stocks surge
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The news: The Australian sharemarket closed higher on Thursday, breaking a three-day losing streak, as a takeover bid for Altium boosted tech stocks.
The numbers: The benchmark ASX 200 gained 0.77% to 7,605.7, with eight out of 11 sectors finishing in green.
The IT sector was the best performer, rising 6.8%, followed by AREITs (3.4%), and consumer discretionary (2.8%). The announcement of plans by Japan’s Renesas to acquire Altium at a 34% premium to Thursday's closing price triggered a 28.9% surge today. Altium was also the sharemarket’s best-performing stock.
Goodman Group ended the day up 7.29% after it upgraded its full-year guidance. However, it recorded a statutory net loss of $220.1 million for the half year.
Wesfarmers also enjoyed gains, finishing up 4.65% on the back of steady profit and revenue rises during the first half.
The worst performing sector was energy, down 2.1%, followed by materials (-0.66%) and telecommunications services (-45%).
Large energy firms Woodside (-2.76%), Santos (-1.15%), Yancoal (-2.48) and Whitehaven (-6.06%) were all down. Whitehaven’s shares took a dive after it posted an 86% profit fall and a reduced interim dividend of 7 cents per share.
Miner South32 dropped 4.22% after it posted a net profit fall of 92% and cancelled its share buyback. BHP fell 1.85% as it announced an earnings hit due to a nickel crash, ahead of its results due on 20 February.
The worst performing ASX 200 stock was Pro Medicus, which fell 13.04% despite posting a 33.3% lift in profit for the first half. RBC Capital Markets analysts said the company’s results were a “slight miss on lofty expectations”. Over the last 12 months the stock has gained around 50%, “so a weaker top line/margin result [is] unlikely to be received well by the market”, they said.
The Australian dollar is lower, buying US64.85 cents.
The context: Friday will see GQG Partners, IAG Insurance, Inghams, and QBE Insurance post earnings. Meanwhile, the US will release its retail spend figures on Friday.
