AU Morning Wrap: ASX Dragged by Tech; PSP Shrinks Costa Group Bid

Moomoo News AU joined discussion · Sep 18, 2023 08:28

G'day, mooers! Check out the latest news on today's stock market!
• Tech stocks weigh on US major indexes
• ASX dragged by tech
• Stocks to watch: A2 Milk, Yellow Brick Road, Zip Co
- Moomoo News AU

AU Morning Wrap: ASX Dragged by Tech; PSP Shrinks Costa Group Bid

Wall Street Summary

A slump in technology companies' shares weighed on the S&P 500 Friday, chipping away at the broad-market benchmark's recent gains and pushing it into negative territory for the week.

The $S&P 500 Index (.SPX.US)$ fell 1.2%, while the $Nasdaq Composite Index (.IXIC.US)$ shed 1.6%. The $Dow Jones Industrial Average (.DJI.US)$ lost about 289 points, or 0.8%. The S&P 500 and Nasdaq posted slim declines for the week, while the Dow eked out a small gain.

AU Market Watch

The sharemarket has opened lower, following a tough day for US stocks on Friday, led by declines in tech stocks.

The $S&P/ASX 200 (.XJO.AU)$ opened 0.5 per cent lower, or 35 points, to 7244.3. The All Ordinaries also opened 0.5 per cent lower.

Tech shares are the worst performing in early trading, down more than 2 per cent, following a similarly poor performance on the Nasdaq at the end of last week.

$The a2 Milk Co Ltd (A2M.AU)$ retreated 1.2 per cent at open. The infant formula company cancelled its long-running exclusivity deal with supplier Synlait. Shares in Synlait were halted following the news.

$Costa Group Holdings Ltd (CGC.AU)$ has dropped 0.3 per cent on news Paine Schwartz Partners has reduced its proposed takeover offer for the agricultural group to $3.20 per share.

Yellow Brick Road has fallen 5.2 per cent. Shareholders in the soon-to-be-delisted mortgage-broking business will get the chance to top up shares through a final purchase plan.

Zip Co has dropped 3.1 per cent, following news the buy-now-pay-later platform's chief financial officer will retire at the end of this month. Martin Brooke will step down from the role on September 29 and former Westpac general manager of group finance Gordon Bell will step into the role.

Stocks to Watch

$Whitehaven Coal Ltd (WHC.AU)$: Whitehaven Coal has confirmed its in talks to buy the Daunia and Blackwater coking coal mines in Queensland from the BHP Mitsubishi Alliance.

The confirmation comes after The Australian Financial Review revealed today that one of Whitehaven Coal's largest investors, Bell Rock Capital, had accused the company of telling a select number of shareholders that it would delay its share buyback program and was interested in the buying the mines.

$Yellow Brick Road Holdings Ltd (YBR.AU)$: Shareholders in soon-to-be-delisted mortgage-broking business Yellow Brick Road will get the chance to top up shares through a final purchase plan, ahead of the company dropping off the ASX.

Under the share purchase plan, investor can purchase up to $30,000 worth of new fully paid ordinary shares.

There will be a cap of $2 million on the total amount to be raised under the plan.

Shares will be issued at 5.5¢, the same value as the proposed buy-back price upon de-listing.

$Synlait Milk Ltd (SM1.AU)$: Synlait Milk has halted its shares following news a key exclusivity deal with fellow ASX-lister $The a2 Milk Co Ltd (A2M.AU)$ has collapsed.

Shares have been halted ahead trading pending an announcement, which Synlait says will arrive before the start of trading on Wednesday.

$Zip Co Ltd (ZIP.AU)$: The shake-up of Zip Co's executive team has continued, with the buy-now-pay-later platform's chief financial officer set to retire at the end of this month.

Martin Brooke will step down from the role on September 29 and former Westpac general manager of group finance Gordon Bell will step into the role.