ASX edges higher but materials drag
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The news: The Australian sharemarket edged higher, tracking modest gains on Wall Street.
The numbers: The benchmark ASX 200 gained 0.1% to end at 7,767.5, with seven out of 11 sectors finishing in green.
The best performing sector was IT, up 0.9%, followed by financials (0.75%). The deal of the day was the approval by the Federal Treasurer Jim Chalmers of the acquisition of Suncorp Bank by ANZ. While Suncorp shares lifted 3.51%, ANZ shares ended 0.21% lower. E&P Capital analysts said the acquisition could add to ANZ’s medium-term cost challenges.
IAG jumped 7.81% after the insurer said it had signed reinsurance deals with Berkshire Hathaway and Enstar Group.
Mirvac gained 3.59% after the property developer announced that it would sell part of a $2 billion Sydney office development to Japanese group Misui Fudosan.
The worst performing sector was materials, down 0.98%, followed by consumer staples (-0.48%).
Lithium miners fell on the ASX as UBS analysts said they expected lithium prices to remain “lower for longer”. Pilbara Minerals (5.22%), IGO (3.41%), Mineral Resources (2.99%) and Liontown Resources (-2.7%) all fell.
Meanwhile, Bannerman Energy slumped 8.66% after a share placement by the uranium explorer was priced at a hefty discount.
Adore Beauty fell 4.79% after the online retailer announced it had agreed to buy beauty and wellness brand iKOU Holdings.
The Australian dollar is lower, buying 66.31 US cents.
The context: Tonight will see the release of the latest US Personal Consumption Expenditures figures, the Federal Reserve’s preferred inflation gauge.
