What’s moving the ASX today? CBA’s new ATH, Mayne Pharma plunge, Adriatic

Welcome to the halfway point of a busy Wednesday, with a lot happening on the market today. Here’s the big headlines:

Commonwealth Bank’s new record high

• Commonwealth (ASX:CBA) has continued its analyst-defying climb to a new all-time high share price of $176/sh intraday
• For over a year now, a vast majority of analysts have rated Commonwealth a sell
• However, amidst a Chinese economic downturn and subsequent Chinese equities exit, and new volatility stemming from the Trump 2.0 Administration, CBA is considered a safe haven asset
• Sentiment is apparently unchanged even after the RBA’s rate cut on Tuesday, where typically one may predict a bank would make less on mortgage payments

Mayne Pharma’s due diligence crash-out

• Mayne Pharma (ASX:MYX), a womens’ pharmaceutical products brand, has sunk -30% to $4.48/sh as U.S.-based Cosette walked away from a proposed $672M takeover of Mayne
• Mayne was required to inform Cosette of a material change to its underlying fundamentals, and despite having received information satisfying that, it did not inform Cosette
• Investors have responded by exiting Mayne Pharma stocks as it now appears it won’t be part of any $627M deals
• Further compounding issues, this follows a letter of concern from the FDA, ultimately alleging Mayne has been dishonest in advertising commercial risks associated with its products

Adriatic Metals jumps as takeover talks confirmed

• Adriatic Metals (ASX:ADT), currently exploring for silver in Bosnia and Serbia, has caught the eye of Canadian gold miner Dundee Precious Metals
• Adriatic investors clearly see the takeover (or buyout) as a beneficial step towards maximising value
• This is evidenced in that shares have jumped $1 in value from ~$3.65 to ~4.65/sh on Wednesday
• The +25% share price jump on Wednesday has levelled out Adriatic’s 1Y returns to a loss of only -3%

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