ASX closes higher; lifted by consumer staples, discretionary
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The news: The Australian sharemarket ended higher as the consumer staples and discretionary sectors surged while investors considered a re-escalation of hostilities between Iran and the US.
The benchmark ASX 200 index rose 0.57% to 8,653.3 with eight of the 11 sectoral indices in positive territory. The consumer staples sector lifted 3.9% while the consumer discretionary sector lifted 3.6%.
Biggest movers:
- Steadfast Group (+36.2%) — Entered an exclusivity and process deed on a conditional non-binding indicative offer to be acquired by Dragoneer Investment Group for $6 per share, implying the company has an enterprise value of $7.7 billion. The Steadfast board intends to unanimously recommend the bid to shareholders in the absence of a superior proposal.
Deal news:
- Northern Star Resources (-3.5%) — Chair Michael Chaney wrote a letter to shareholders acknowledging recent criticism by activist shareholder Elliott Management but rejecting its call to run a sale process for the company.
- Sigma Healthcare (-5.5%) — Confirmed it has engaged in preliminary discussions to buy UK health and beauty retailer Boots.
- Livium (-10%) — Announced a recycling services framework agreement between its subsidiary Envirostream, and the world’s largest lithium-ion battery manufacturer CATL.
Other news:
- Charter Hall (+1.8%) — Established a new $2 billion secured debt platform following the refinancing completion of its balance sheet.
- Helia Group (+1.8%) — Appointed Steadfast Group executive Mark Senkevics as its new chief executive and managing director, effective 1 December, succeeding interim CEO Michael Cant.
- GQG Partners (-0.3%) — Reported a 2.2% drop in funds under management in the May quarter, taking year-to-date funds down 0.4% to USD163.3 billion ($232.6 billion).
What’s ahead:
- The US Bureau of Labor Statistics will release consumer price index figures at 10:30pm AEST.
- The Bank of Canada will announce its latest decision on interest rates at 11:45pm AEST.
