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In what was another strong session for the Asian region broadly, renewed optimism coming from the ongoing US-China (or US-ASEAN) diplomatic talks this week, the ASX missed out – likely because investors are holding off to see what comes from the latest ABS CPI data being released on Wednesday.
The ASX was red down -0.3% in the final hour of trades; compare that to regional indexes:
While the CPI data will likely be this week’s biggest local catalyst, overhead geopolitical macro from the upcoming Trump-Xi meeting will likely have an outsized effect, assuming any hard conclusion or negotiation is arrived upon at the end of the meeting(s).
Looking at sectors, health care led laggards driven down by CSL’s less-than-favourable update to the market today (wherein it downgraded guidance,) while financials led the gainers as we got into the final hour of trade.
Let’s turn to companies in the green.
Domino’s was firmly green intraday up around +15% at one point on reported rumours in the AFR that Bain Capital was looking at a buyout of the fast food chain; gains severely pared back intraday however after DMP denied this was the case.
In a similar vein, AUB Group popped close to +8% in the final hour after it too received a private equity takeover bid; this one confirmed.
Finally, Weebit Nano continued to climb, with shares in that company up close to +9% after a well-received quarterly last week.
And as for the reds:
More pain for Wisetech as shares in that Australian tech darling fell on the back of confirmation its offices were raided by ASIC and the AFP on Monday in response to insider trading allegations involving lately-controversial founder Richard White.
CSL Ltd meanwhile staged a steep decline of nearly -15% in further pain for shareholders as the not-so-fast-growing blood plasma giant confirmed it’s seeing less demand for vaccines in the US, and less for albumin in China, ultimately leading to a guidance downgrade.
Finally, Australian Strategic Minerals continued to decline as hype from last week’s US-Aus critical minerals meeting continues to cool.
That’s Market Close for Tuesday, I’m Jon Davidson, have a great night and we’ll see you on Wednesday,
