ASX winning streak ends as tech and real estate stocks sink
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The news: The Australian sharemarket ended in the red after five straight gains, as technology and real estate stocks lost ground.
Fresh tariff announcements by US President Donald Trump on foreign-made cars weighed on auto parts dealers Eagers Automotive (-2.7%), Bapcor (-2.5%) and ARB Corporation (-2%) and vehicle marketplace operator Car Group (-2.4%).
However, the move also boosted crude prices, with gains by oil producers Ampol (1.7%) and Woodside Energy (1.5%) helping energy (1%) end as the best performing sector.
Nine-controlled real estate platform Domain was once again in focus as US property play CoStar hiked its takeover bid. Meanwhile, value retail chain The Reject Shop saw its shares more than double in price after Toronto-listed group Dollarama moved to buy the small cap for a 112% premium.
The ASX 200 closed 0.38% lower at 7,969, with 7 out of 11 sectors finishing in red.
Big ASX 200 movers:
- Healius (10.7%) — Outlined a $300 million special dividend payout following the sale of its Lumus imaging business.
- Technology (-2.1%) — Ended as the second worst performing sector, after real estate (-2.2%), as its largest stock WiseTech Global shed 2%. The selloff came after pension fund AustralianSuper sold its 1.9% shareholding following accusations of inappropriate conduct by founder and former CEO Richard White.
Deals:
- Domain (-4.9%) — Received a "best and final" takeover offer from Nasdaq-listed suitor CoStar, valuing the real estate platform at around $2.8 billion. Domain's majority shareholder Nine Entertainment (-1.6%) also fell.
- The Reject Shop (109.5%) — Agreed to a $259 million takeover by Canadian retail chain Dollarama. The $6.68-per-share offer represents a 112% premium to its closing price of $3.15.
- Centuria Capital Group (-0.3%) — Acquired an industrial facility in Perth for $38.6 million, marking the largest industrial transaction value in the city since December 2023.
Other news:
- Neuren Pharmaceuticals (0.7%) — Announced it will develop a new drug to treat a type of life-threatening brain injury in infants, targeting a pre-investigational new drug meeting with the US Food and Drug Administration in the fourth quarter.
- Mesoblast (-2.3%) — Confirmed the commercial launch of its cell therapy product Ryoncil in the US.
- Archer Materials (3.3%) — Promoted current chief technology officer Simon Ruffell to the CEO position with immediate effect.
- Commonwealth Bank (-0.1%) — Unveiled a a "dedicated tech hub" in Seattle, designed to advance the bank’s technology leadership by equipping its teams with new skills in artificial intelligence.
