ASX ends flat; James Hardie tanks on AZEK buyout
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The news: The ASX ended flat after gains across the discretionary and financial sectors cancelled out a heavy decline in consumer staples stocks, as Woolworths and Coles pared gains after rallying on Friday.
Building materials heavyweight James Hardie saw one of the largest falls, after announcing the $14 billion acquisition of NYSE-listed outdoor living products maker The AZEK Company.
The ASX 200 closed 0.07% higher at 7,936.9, with 8 out of 11 sectors finishing in red.
Biggest ASX 200 movers:
- Helia Group (-25.6%) — Said its lenders mortgage insurance contract with Commonwealth Bank is at risk after the big four lender entered into exclusive negotiations with an alternative provider.
- Mineral Resources (6.9%) — Restarted haulage operations at its Onslow Iron haul road following a road train crash last week.
Executive Moves:
- The Lottery Corporation (0.2%) — Managing director and CEO Sue van der Merwe told the board she intends to retire by the end of the calendar year.
- Steadfast Group (-1.5%) — Chief operating officer Nigel Fitzgerald will step down on 1 July, as part of a larger restructure of its executive leadership team. Managing director Robert Kelly committed to not retiring before 31 December 2026.
- KMD Brands (flat) — Named Nike executive Ashley Reade as the new Rip Curl CEO.
Analyst rating changes:
- Fortescue (3.2%) — UBS upgraded its rating from 'sell' to 'neutral', with analysts optimistic on the outlook for iron ore prices.
- South32 (-1.1%) — Received a downgrade from UBS, from 'buy' to 'neutral', with higher costs expected to weigh on earnings.
- Cleanaway (1.2%) — Upgraded by Morgans from 'hold' to 'add' following the company's $377 million acquisition of industrial services provider Contract Resources Group last week.
Other news:
- James Hardie (-14.5%) — Agreed to buy NYSE-listed outdoor living products maker The AZEK Company for $13.95 billion.
- Bellevue Gold (-12.8%) — US investment manager Van Eck Associates sold a 1.5% holding in the gold miner.
- Regal Partners (-14.8%) — Its 30%-owned biotech Opthea said there was "material uncertainty" of its "ability to continue as a going concern" following a failed clinical trial.
- Synlait (-12%) — Swung to a first-half profit, but warned of slower financial progress in the second half of the year.
- Star Entertainment (suspended) — Secured a two-day delay of "highly sensitive" documents to the financial crime regulator, Austrac, as the money-laundering lawsuit against the casino operator prepares for a June trial.
The Australian dollar is buying 62.78 US cents.
