TMH Market Close: Tax cut changes rattle investors & ASX200 closes flat

The ASX200 ended the day quite flat as the Labor Government’s plans for stage three tax cuts became clear.

Cuts for those earning upwards of $190k will be half what was previously promised, while those earning up to $135k will be in a better position.

In this bulletin, we’ll discuss Rio Tinto, Kogan.com, Sigma Healthcare, Newmark Property Reit, BWP Trust, Chrysos Corporation and Nanosonics.

In the green

Rio Tinto (ASX:RIO) added nearly a per cent on news it’ll spearhead the development of Australia’s largest solar power project, the 1.1GW Upper Calliope Solar Farm, near Gladstone in Queensland.

The agreement will see Rio Tinto purchase all electricity generated for 25 years.

This initiative will play a pivotal role in powering Rio Tinto’s three production facilities in the region.

Rio also announced today that a light plane carrying its people to its Diavik diamond mine in Canada had crashed killing a number of people – yet to be confirmed.

The mine is 220 kilometres south of the Arctic Circle.

RIO closed at $129.02.

Australian online retail group Kogan.com (ASX:KGN) was up almost 15 per cent on gross profit increases.

The group’s first half gross sales fell 5.6 per cent year on year to $445.4 million– due to reduced inventory.

However, Kogan’s gross profit increased more than 42 per cent year on year to $89.5 million with margin increases, thanks in part to platform-based sales.

KGN closed at $5.02.

Sigma Healthcare (ASX:SIG) gained half a per cent after raising $223 million through a retail entitlement offer, bringing funds raised for the $700 million merger with Chemist Warehouse to the goal of $400 million.

Sigma’s major shareholder, HMC Capital, was a significant participant in the raising, which was priced at 70 cents.

SIG closed at 97 cents.

Another one to add today is Newmark Property REIT (ASX:NPR) which gained more than 35 per cent on an off-market takeover offer from BWP Trust (ASX:BWP). It closed at $1.32 which is 7 cents below the buyout offer of $1.39 a share.

In the red

But investors in BWP Trust (ASX:BWP) – the commercial real estate investment company pursuing Newmark Property REIT weren’t so sure of the deal, which adds a 43 per cent premium to Newmark’s closing price yesterday.

BWP’s portfolio consists mostly of Bunnings Warehouses.

BWP closed down more than 2 per cent at 3.40.

Infection prevention company Nanosonics (ASX:NAN) plunged 33 per cent on its half-year sales guidance, with first-half profit before tax expected to be below $5 million and less than half what was achieved in the previous corresponding period.

The company blames hospital budget pressures.

It closed at $2.91 today.

And mining technology provider Chrysos Corporation (ASX:C79) lost 5.5 per cent after downgrading its FY24 revenue the lower end of its forecast range of A$48 million to A$58 million. 

It reported there may be delays in deploying its ‘PhotonAssay’ flagship technology. 

C79 closed at $7.21.