Home / Daily Market Update / ASX sets new record high, backs off

ASX sets new record high, backs off

Daily Market Update

ASX down on energy, PEXA set to IPO, Nuix downgrades again 

The ASX200 (ASX: XJO) started the day strongly, hitting a new record before ultimately closing 0.3% lower as energy, down 1.6%, and the IT sector, -0.9% continued to drag.

The weakness comes ahead of a huge week for the Australian economy, with the Reserve Bank of Australia meeting tomorrow and quarterly GDP figures due on Wednesday.

  • This all comes with the backdrop of a potential extension to Victoria’s COVID-19 snap lockdown.

    Link Administration Holdings Ltd (ASX: LNK) fell close to 7% today after management decided to rebuff the $3 billion offer for the PEXA property settlement platform which they own 44% of.

    This was an interesting turnaround, to say the least, with the slow growth company a willing seller just a few months ago but now ultimately agreeing to retain an increase in its stake ahead of a June initial public offering.

    The valuation was 70% higher than its previous estimate yet the share price finished lower.

    Staying with IPOs, embattled data player Nuix Ltd (ASX: NXL), which I bought after the first downgrade, has confirmed its revenue will be even lower in FY21 than it expected just five weeks ago.

    NXL shares fell 18% with revenue now $173 to $182 million down from $194 million but confidence clearly evaporating.

    IOOF finalises MLC purchase, REA offloads Asian stakes, lending weakens

    Vertically integrated financial advisory group IOOF Holdings Limited (ASX: IFL) confirmed the finalisation of its acquisition of MLC from the National Australia Bank (ASX: NAB).

    Shares moved 0.8% higher as the group welcomes 406 MLC-licensed financial advisers and boosts its funds under management, administration, and advice to close to $494 billion.

    Management reiterated the aim of $150 million cost savings before FY22, yet it seems a difficult business model to reinvent given the backdrop of increasing regulation.

    Property platform REA Group Limited (ASX: REA) finished 0.5% higher after confirming it would be offloading its investments in Malaysian and Thai property platforms to PropertyGuru, a leader in the region.

    Management highlighted this as a ‘unique opportunity to create the most compelling digital classifieds company in South East Asia’.

    Any hope of a debt-fuelled recovery was dashed after business lending fell 0.3% in April and 3% for the 12 months.

    US markets closed ahead of employment data

    US futures are positive as the market is closed for Memorial Day ahead of a major set of employment data to be released later in the week.

    Oil rallied strongly after OPEC highlighted an expected run-down in inventories if current supply levels are maintained ahead of an expected recovery in demand.

    Gold delivered its biggest monthly gain since July.

    Industrials, property push ASX lower, RBA hikes again, Woolworths guides to higher sales

    The local market fell sharply on the back of an unexpected 0.25 per cent interest rate increase by the Reserve Bank of Australia. The news took the cash rate to 3.85 per cent, adding more pressure to household balance sheets and came despite most experts suggesting hikes had come to an end. The hardest hit…

    Drew Meredith | 3rd May 2023 | More
    ASX boosted by the energy sector, Origin upgrades outlook, Best & Less gets a bid

    The local sharemarket finished 0.4 per cent higher on Monday, buoyed by the energy and utilities sectors, which gained 1.3 and 1 per cent, despite the oil price continuing to fall. The sector was buoyed by an earnings upgrade from Origin Energy (ASX:ORG) which sent shares 0.5 per cent higher with AGL Energy (ASX:AGL) also…

    Drew Meredith | 2nd May 2023 | More
    Upbeat start to week – and month – likely for Aussie market

    After a strong session for global markets on Friday, Australian shares will take a positive lead into the new week – and month. The Australian benchmark index, the S&P/ASX 200, added 16.5 points, or 0.2 per cent, on Friday, to 7,309.2, but eased 53 points, or 0.7 per cent over the week. ASX futures trading…

    James Dunn | 1st May 2023 | More