Markets at a glance 21 May
The S&P/ASX200 is under pressure as losses in financial stocks offset gains in miners and tech stocks.
Healthcare stocks are also marginally lower, on track for a third consecutive session of losses. Bucking the trend are the miners, bolstered by a multi=month high in iron ore futures. BHP (BHP) remains in the spotlight, among the day’s top performers, ahead of a deadline to lodge a formal bid for rival Anglo American, which rejected its sweetened $43 billion takeover proposal last week.
Energy and gold added 0.1% and 0.2% respectively as bullion prices continue to touch record highs on a mix of Chinese stimulus measures and US rate cut expectations.
Stock specific, Australian listed shares of James Hardie (JHX) are among the top losers on the benchmark, touching a five-month low, as the world’s largest fibre cement maker forecasts lower annual profit for fiscal 2025 as higher interest rates in its biggest market constrained housing demand and higher marketing spends hurt earnings. Adjusted net profit is now expected to come in between $630 million and $700 million for the FY25. Adjusted net income for fiscal 2024 was $707.5 million.
Star Entertainment (SGR) shares have sharply reversed gains seen in the previous session as investors doubt the validity of a takeover bid by Florida-based Hard Rock International after the company denied any involvement in a takeover bid for the Australian casino operator.
On Monday, Star said it had received interest from a group of investors which includes Hard Rock Hotels & Resorts (Pacific), which sent shares soaring 20%. Hard Rock said it is investigating the matter and might take legal action to protect its brand and reputation.
And Telstra (TLS) shares are also under pressure as the telecom company announced plans to cut almost 10% of its workforce by the end of 2024, as it looks to simplify operations and improve productivity. Telstra CEO Vicki Brady said in a statement the 2,800 job losses, along with other measures, will allow the company to save about $350 million by the end of 2024.
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