Market (ASX:XAO) gains on Liontown bid, Qantas continues to sink

The local sharemarket started the week strongly, with the All Ordinaries (ASX:XAO) managing a 0.5 per cent gain, and the S&P/ASX200 (ASX:XJO) up 0.6 per cent. The move was driven by positive sentiment in the materials and energy sectors, up 2 and 1.6 per cent, as acquisition activity continues to grow. This time it was […]

The local sharemarket started the week strongly, with the All Ordinaries (ASX:XAO) managing a 0.5 per cent gain, and the S&P/ASX200 (ASX:XJO) up 0.6 per cent. The move was driven by positive sentiment in the materials and energy sectors, up 2 and 1.6 per cent, as acquisition activity continues to grow. This time it was lithium miner Liontown (ASX:LTR) adding 8.8 per cent after global giant Albemarle increased its bid for the company to $6.6 billion, which management indicated they would be willing to accept. The staples sector was the biggest detractor, falling 0.6 per cent, as formula producers including A2 Milk (ASX:A2M) were sold off on growth concerns. Shares in Qantas (ASX:QAN) continue to sink, falling another 2.9 per cent, as the public relations nightmare continues. Confirmation of proceedings by the regulator couldn’t have been more poorly timed, coming just as the Federal Government had sought to protect the airline carriers profit by blocking Qatar Airways’ bid for more airspace.

Company profits sink, Sky City falls on suspension risk, BHP rallies,

Australian company profits, which looks beyond ASX-listed companies, fell heavily in the June quarter, down 13.1 per cent. This was nearly 10 times worse than the 1.9 per cent expected by economics, while inventories also fell slightly as discounting swept the market. Shares in casino operator Sky City (ASX:SKC) were the worst performing, down 14.8 per cent after informing the market that the license in its NZ casino could be suspended for ten days due to a failure to comply with the country’s Host Responsibility Programme. Shares in BHP (ASX:BHP) supported the market, gaining 2.7 per cent on the back of another round of monetary support for the Chinese economy, which is the incremental buyer of iron ore. EFTPOS terminal provider Tyro Payments (ASX:TYR) fell more than 4 per cent is suing one of its local counter parties, Kounta, for breach of contract pertaining to seeking to install competing terminals with Tyro customers. 

US markets were closed for Labour Day