The ASX Today: Banks, Coles weigh on market as Perpetual and Magellan soar

Hello and welcome to The ASX Today, I’m Seja Al Zaidi. The Aussie market has started the new financial year red, with weakness in banks and consumer staples outweighing gains from the mining sector. The ASX 200 was down 0.6 per cent at lunchtime, with seven of the 11 sectors trading lower.

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Coles was one of the biggest drags, falling 7 per cent after confirming it’s in talks with TPG Capital over a potential acquisition of Greencross Pet Wellness. The supermarket giant also copped another blow after the ACCC blocked a proposed supermarket and liquor site in Kalgoorlie over competition concerns.

The major banks were also under pressure, with ANZ leading losses, while Commonwealth Bank, NAB, and Westpac all trading slightly lower following fresh signs Australia’s housing market is cooling.

But there were some standouts. Perpetual surged almost 17 per cent before halting, after it confirmed it had received an approach regarding a potential takeover. Magellan also rallied more than 13 per cent after completing its merger with Barrenjoey, while Netwealth climbed 9 per cent.

Mining provided support as copper prices strengthened ahead of renewed U.S.-Iran peace talks. BHP gained more than 1 per cent; South32 jumped 9 per cent after selling its aluminium chain assets to Alcoa in a deal worth close to $10 billion, sharpening its focus on copper and other base metals.

Healthcare was another bright spot intraday, with CSL higher and both Pro Medicus and Telix Pharmaceuticals gaining close to 4 per cent.

Elsewhere, IperionX rose after securing up to US$6.6 million from the U.S. Department of Defence to expand titanium production. Orica rose after green-lighting its Hunter Valley Hydrogen Hub, while ARN Media climbed after selling its Hong Kong outdoor advertising business for $5.6 million.

That’s The ASX Today. I’ll see you tomorrow.

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