ASX closes lower; Silex Systems craters after missing $1.3b opportunity
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The news: The Australian sharemarket finished lower amid broad losses and as uranium enrichment technology provider Silex Systems led losses on the ASX 200 after announcing it was unsuccessful in a bid for USD900 million ($1.3 billion) under a US government program.
The benchmark ASX 200 fell 0.52% to end at 8,682.8 with nine of the 11 sectors finishing in the red.
The utilities sector (-2%) was the worst performing as Origin Energy (-1.2%), APA Group (-2.9%), Meridian Energy (-0.6%) and AGL Energy (-3.2%) finished lower. The finance sector (-1.8%) also finished lower as Commonwealth Bank (-3%), Westpac (-2.2%), NAB (-2.4%) and ANZ (-2%) fell.
The materials sector (+2%) finished higher as BlueScope Steel (+20.8%) led gains on the ASX 200 after confirming a report that it has received a $13 billion acquisition offer from SGH (+4.5%), which intends to sell the company’s North American assets to Nasdaq-listed Steel Dynamics.
Lithium miners Liontown (+14.8%), Pilbara Minerals (+9.5%) and IGO (+5.1%) were among the biggest gainers on the ASX 200 as was aluminium producer Alcoa Corporation (+6.9%) and Capstone Copper (+5%).
Biggest movers:
- Silex Systems (-33.3%) – Was unsuccessful in its bid for USD900 million under the US Department of Energy’s Low Enriched Uranium program’s request for proposals. However, it was selected to receive up to USD28 million under the department’s Global Laser Enrichment program.
- roneShield (+18.4) – Among the biggest gainers on the ASX 200 despite there being no company specific news.
Other news:
- Life360 (-3%) – Announced the completion of its USD120 million ($184 million) cash and stock acquisition of advertising technology business Nativo. Also reported record monthly active users of more than 50 million in the United States.
- WiseTech Global (-1.3%) – Entered into an agreement to acquire customs and border management education provider Centre for Customs and Excise Studies (CCES).
- Monadelphous (+2.4%) – Awarded a $175 million construction contract with mining giant BHP, for work at its car dumper project at Finucane Island in Port Hedland, Western Australia.
- Infratil (+1.9%) – Partially-owned data centre developer CDC has seen a $349 million increase in its valuation over the last three months, according to a new independent valuation.
- IAG (+0.1%) – Integrated recently acquired RACQ Insurance into its main catastrophe reinsurance program, whole-of-account quota share (WAQS) arrangements and aggregate stop-loss protection.
What’s ahead:
- The Australian Bureau of Statistics will release consumer price index data and building approvals data for November on Wednesday at 11:30am AEDT.
