ASX closes below 8,000 after fourth straight loss
Make us a preferred source
Make us a preferred source on Google
The news: The Australian sharemarket took a heavy fall, its fourth in succession, as it dropped below 8,000.
Insignia Financial was the day's big winner — its shares rocketing as US private equity firms Bain Capital and CC Capital resumed their takeover battle for the wealth manager.
Elsewhere, Star Entertainment looks like it may avoid falling into administration, after media reports claimed that it had reached a $50 million deal to sell its share of the Queen’s Wharf casino and entertainment complex in Brisbane.
The ASX 200 fell 1.8% to end at 7,948.2, with 10 out of 11 sectors finishing in red.
ASX 200 declines:
- PolyNovo (-13%) — Confirmed its CEO Swami Raote was asked to leave amid media reports claiming the company's chair David Williams was the subject of a bullying probe.
ASX 200 gains:
- Insignia Financial (9.9%) — Received improved takeover proposals from rival suitors Bain Capital and CC Capital Partners, valuing the company at nearly $3.4 billion.
Executive moves:
- Westpac (-2.2%) — Announced that its veteran executive and head of its consumer banking business, Jason Yetton, will leave the group.
- Perpetual (1.7%) — Appointed Sean Roger to the role of co-portfolio manager of the company, to work alongside Vince Pezzullo.
Other news:
- Financials (-2.5%) — The market's largest company Commonwealth Bank (-3.3%) fell as much as 4%, before paring some losses. Fellow big four banks Westpac, ANZ (-2.4%) and National Australia Bank (-1%) also ended lower.
- Star Entertainment (suspended) — Media reports said the casino operator signed a $50 million deal with Hong Kong’s Chow Tai Fook Enterprises and Far East Consortium to sell its 50% stake in the new Queen’s Wharf casino and entertainment complex in Brisbane.
- Orica (0.5%) — Outlined a mixed trading update, saying it expects stronger than expected earnings for the first half but also flagging after-tax write-downs worth up to $350 million.
The Australian dollar is buying 63.08 US cents.
