ASX NEWS LIVE | ASX to Slip from Record High; Aus Retail and Building Data Out Today

The ASX 200 closed down -0.74% to 8,208.9 in the first trading session of October, breaking its three-day win streak as miners reversed course after recent gains.

Five out of the eleven sectors closed higher, with Health Care leading today, up +1.13% thanks to gains from Sigma.

Mining stocks closed down 2.3% following a strong September performance that was spurred by recent stimulus moves by China to try boost domestic consumption and production.

BHP dropped -2.9%, while iron ore futures in Singapore also declined. Banking stocks fell -1.3%, with Commonwealth Bank losing -1.5%.

In local news, Sigma Healthcare surged +22.6% on merger progress, Qantas fell -3.4% after Qatar Airways offered to buy a 25% stake in Virgin Australia.

Namoi Cotton rose 8.5% on an increased buyout offer. While, REA Group’s shares climbed +4.9% after abandoning its Rightmove takeover bid.

Here’s the latest from our Fat Tail Daily video series. Two in one day!

Publisher James ‘Woody’ Woodburn sits down with our editors to discuss the key trends traders are looking at and offer unique insights into market movements.

In the latest video, James spoke with Australian Gold Report Editor Brian Chu.

Investors are turning to gold stocks as the yellow metal sets records.

But not all gold stocks are equal. Some will rise and fall with the price of gold, while others grow across the gold price cycle.

Today, they discuss how you can tell the long-term winners and the cyclical companies.

Gold specialist Brian Chu shows you valuable insights to increase your odds of success.

To read Brian’s original article, click here.

Click below to watch the discussion.

Louis Dreyfus has emerged victorious in the prolonged contest to acquire ASX-listed Namoi Cotton [ASX:NAM], defeating rival agricultural company Olam Agri.

Despite Olam increasing its bid to 68 cents yesterday, the company announced later that day it would allow its offer to expire next week.

This decision came after Louis Dreyfus raised its bid to 77 cents and secured over 47% of Namoi’s float.

The turning point in the acquisition battle was STAM, Namoi’s largest shareholder, aligning with Louis Dreyfus.

This development proved decisive, prompting Olam to reduce its stake in Namoi from 16% to approximately 8%.

Ashish Govil, Olam’s Australian lead, commented on the outcome, saying:

‘We hope that our interest in acquiring Namoi Cotton is seen as a testament to Olam Agri’s willingness to invest in the Australian agriculture industry.’

Shares in Naomi Cotton are up by +8.45%, trading at 77 cents per share this afternoon.

The latest retail data for Australia from the Australian Bureau of Statistics showed a slight uptick in retail spending for August.

Spending saw a 0.7% increase month-on-month. That was 3.1% higher than August 2023.

Some of this higher spending could be thanks to the Stage 3 tax cuts or increases as the weather warms.

This is also the second consecutive month that sales have exceeded (fairly low) expectations.

Here’s the latest chart from AMP chief economist Shane Oliver on the spending figures going back to 2014:

Australian real retail sales per person remains depressed. pic.twitter.com/DrHkzUaEob

— Shane Oliver (@ShaneOliverAMP) October 1, 2024

The ASX has slipped from its record high as it begins the December quarter, with miners losing some of their recent strong gains.

Near midday, the ASX 200 is down -0.66% at 8,215.6. This follows the best September quarter in over a decade, with seven record highs.

On Wall ST, the S&P 500 and Nasdaq achieved their fourth consecutive quarter of gains, the longest streak since 2021.

Mining stocks are following an easing in commodity prices, falling 1.3% after surging 10% in September due to China’s renewed stimulus efforts.

BHP has dropped -2.73% to $44.71. The Aussie Dollar strengthened +0.07% to US 69.25 cents following better-than-expected August retail sales data, which showed a 0.7% increase from the previous month.

The currency reached a 20-month high of US69.42 cents on Monday after China announced additional economic stimulus measures.

In company news, Sigma Healthcare shares jumped 15.6% to $1.66 after proposing data-sharing rules to address regulatory concerns about its planned $700 million merger with Chemist Warehouse.

Qantas stock fell -3.10% to $7.19 following Qatar Airways’ move to acquire a 25% stake in Virgin Australia.

Namoi Cotton saw its shares rise +8.45% to 77 cents before a trading halt, as Louis Dreyfus increased its stake to 47% and raised its offer to 68 cents, competing with rival bidder Olam.

REA Group’s stock climbed 5.15% to $211.37 after it withdrew from bidding for UK-listed Rightmove, which had rejected REA’s fourth bid in recent weeks.

Sigma Healthcare [ASX:SIG] is this morning’s outperformer, with the stock up by +11.5% in early trading.

The move came after the company released an announcement outlining a series of court-enforceable steps it would take to alleviate ACCC concerns about its merger with Chemist Warehouse.

The competition watchdog had previously outlined its primary concerns around the $700 million dollar merger of the wholesale and retail chemist powerhouses.

Today, Sigma offered a series of undertakings, with the most important ones restricting its ability to use and disclose confidential data from its customers and franchisees for three years.

‘We are now seeking feedback from stakeholders on whether the draft undertaking offered by Sigma may be capable of addressing the competition concerns arising from its proposed acquisition of Chemist Warehouse,’ ACCC Chair Gina Cass-Gottlieb said today.

Shares in Sigma have returned 140.6% in the past 12 months as the $2.63 billion market-cap pharmaceutical wholesaler continues to steadily rise.

REA Group [ASX:REA] has abandoned its attempts to take over UK-rival Rightmove.

After its fourth attempt at sweetening the deal was knocked back, REA has pointed the finger at Rightmove.

‘They had nothing to lose by engaging with us,‘ complained REA chief executive Owen Wilson as he highlighted the flatlining talks this past week. He went on to say:

‘Against a backdrop of intensifying global competition, we approached Rightmove’s board because we strongly believed in the opportunity to create a globally diversified leader in the digital property sector that would benefit both REA and Rightmove shareholders.’

 

‘We were disappointed with the limited engagement from Rightmove that impeded our ability to make a firm offer within the timetable available.’

So far, the market has taken the news cheerfully, expecting that the capital savings could flow to shareholders.

Shares in REA are up by +2.85% at $206.72 per share this morning.

Qatar and Virgin have announced a mammoth deal today, with the Gulf carrier agreeing to buy a 25% stake in the struggling Virgin Airways for an undisclosed sum.

The deal will require approval from the Foreign Investment Review Board and the ACCC.

But its chances of going through are fairly good after the previous Labour fiasco, where it blocked its request to fly additional services to major Aussie cities in what appeared to be political assistance for Qantas.

As part of the deal, Virgin will launch long-haul routes to Europe using Qatar plans.

Today Virgin’s CEO Jayne Hrdlicka said the Qatar investment was the ‘missing piece‘ of its long-term strategy, giving it the scale to compete with Qantas.

Virgin is not a publicly traded stock, but this morning, we’ve already seen Qantas [ASX:QAN] shares fall by -2.63% in early trading, now at $7.22 per share.

Here’s the latest from our Fat Tail Daily video series.

Publisher James ‘Woody’ Woodburn is back! After an editorial trip in Dublin, Woody is here to discuss the key trends with our editors and offer unique insights into market movements.

In the latest video, James spoke with Alpha Tech Trader and Crypto Capital Editor Ryan Dinse.

With the US, China, and potentially Europe slashing interest rates, we’re looking at where a $2 trillion liquidity injection could likely go.

Ryan breaks down what this could mean for your portfolio, from surging copper prices to the renewed crypto boom.

We explore the ‘risk-on’ trades that are already moving and uncover the sectors ready to absorb ‘The Great Global Print’.

To read Ryan’s original article click here.

Click below to watch the discussion.

Good morning. Charlie here,

The Aussie share market slips after finishing the September quarter near record highs on the back of recovering commodity prices.

Today the ASX 200 opened up down -0.34% to 8,242.0 as the China-led commodity rally took a break after recent stimulus from Beijing.

With commodities easing overnight, expect ASX mining companies to struggle today after rising yesterday.

On Wall St, The Dow Jones and S&P 500 finished the September quarter at record highs, although lower volumes and volatility suggest many are waiting on the sidelines for the upcoming September economic data before staking a longer-term position on the US Economy.

Yesterday, Asian markets were the ones to watch as the Japanese Nikkei fell sharply (-4.80%) after Shigeru Ishiba won a hotly contested leadership race to take the Prime Ministership.

He now rules the LDP, which is widely pegged to win the upcoming election, which is slated for 27 October.

The Nikkei fell as he is widely expected to raise interest rates for the BoJ in his position, potentially unwinding the ‘Japanese-Yen carry trade‘.

Meanwhile, China’s stock market jumped yesterday as the weekend’s stimulus package was absorbed with enthusiasm by the markets, sending the Hang Seng up +2.43% and the Shanghai Exchange up +8.06%.