Highlights
- The benchmark ASX 200 was up 0.6% to 7,034.9 in the first 15 minutes of trading.
- On the ASX, eight out of the 11 sectors were trading in the green today.
- Global markets could be setting for another volatile week in light of a host of Western sanctions being imposed on Russia for its invasion of Ukraine
The Australian share market opened on a higher note on Monday, taking strong cues from Wall Street indices on Friday. The benchmark ASX 200 was up 0.6% or 41.9 points to 7,034.9 in the first 15 minutes of trading.
However, the respite of a positive opening didn’t last long, and the index tanked into the negative territory within one hour of trading as market participants remained cautious over Russia’s order to put its nuclear deterrent forces on high alert.
Global markets could be setting for another volatile week, after Western nations kept announcing a host of sanctions to punish Russia for its invasion of Ukraine and as fighting intensified for a fourth day.
As the US market rebounded on Friday, the Dow Jones registered its biggest daily percentage gain since November 2020. The Dow Jones Industrial Average gained 2.51% to 34,058.75, while the S&P 500 was up 2.24% to 4,384.65. The NASDAQ Composite ended the session 1.64% up at 13,694.62.
How has the market performed so far?
As of 11:00 AM AEDT, the ASX 200 was trading 0.06% or 4.5 points down to 6,993.3, while the ASX All Ordinaries index fell 0.1% or 7.2 points to 7,266.4. The A-VIX was down 1.38% to 18.41.
Coming to the list of top gainers, Iluka Resources Limited (ASX:ILU) gained 4.43% to AU$10.6, followed by Appen Limited (ASX:APX), which was up 4.06% to AU$6.91. On the flip side, Life360 Inc (ASX:360) fell the most, sinking 5.95% to AU$5.37, followed by mining giant Fortescue Metals Group Limited’s (ASX:FMG) shares, which fell 4.46% to AU$17.77.
On the sectoral front, eight out of the 11 sectors were trading in the green today. The material sector was the top gainer, rising 1.7%, while the energy and utilities sectors were also up 1.61% and 1%, respectively. The IT sector was the biggest laggard, falling 0.78%.
Newsmakers
1.Zip Co Limited (ASX:Z1P)
- The company has entered an agreement to buy BNPL player Sezzle in an all-share deal.
- Subject to the closing conditions, Sezzle shareholders will receive 0.98 Z1P shares for every Sezzle share held.
- The proposed deal values Sezzle at 22% premium based on the current price of AU$1.78 or an implied value of AU$491 million.
2.Suncorp Group Limited (ASX:SUN)
- Suncorp Bank is offering a disaster relief package to personal and business customers impacted by heavy rainfall and flooding across southeast Queensland and northern New South Wales.
- As of 28 February 2022, Suncorp had received more than 5,000 claims across both states.
- The maximum retained cost for Suncorp from this event is expected to be approximately AU$75 million.
3.Dalrymple Bay Infrastructure Limited (ASX:DBI)
- The company reported a net profit after tax of AU$129.1 million in FY21, compared to a net loss of AU$113.2 million in FY20.
- During the reported period, the Dalrymple Bay Terminal shipped 54.3 Mt of coal, of which 81% was metallurgical coal.
- The management has declared a dividend of 4.5 cents per share, totalling FY21 dividend to 18 cents per share.
4.Virtus Health Limited (ASX:VRT)
- The company has received a revised acquisition offer from BGH Capital Pty Limited, now at AU$7.65 per share of VRT, deducting any dividend paid after the date of this letter.
- BGH intends to fund the acquisition through a combination of equity and debt.
- BGH has already applied for a no objection notice from the foreign investment review board.
5.VGI Partners Limited (ASX:VGI)
- VGI has confirmed the due diligence and negotiation of the terms of a binding merger between VGI and Regal Funds Management Pty Limited.
- The merger agreement between the two is still subject to final board approvals of each entity.
