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ASX 200 morning report – NXL, LNK & REA shares in focus

The S&P/ASX 200 (ASX: XJO) started Monday strongly, hitting a new record before ultimately closing 0.3% lower as energy, down 1.6%, and the IT sector, down 0.9% continued to drag.

The weakness comes ahead of a huge week for the Australian economy, with the Reserve Bank meeting today and quarterly GDP figures due on Wednesday. This all comes against the backdrop of a potential extension to Victoria’s COVID-19 lockdown.

Link rebuffs offer, PEXA set to IPO

Link Administration Holdings Ltd (ASX: LNK) fell nearly 7% on Monday after management decided to rebuff the $3 billion offer for the PEXA property settlement platform, which it owns 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 its stake ahead of a June initial public offering.

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

Nuix downgrades again

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 management expected just five weeks ago.

The Nuix share price fell 18% with full-year revenue now expected to land between $173 million and $182 million. This is down from the prospectus forecast of $194 million with confidence clearly evaporating.

NXL share price chart since listing

Source: Rask Media NXL share price chart since listing

IOOF finalises MLC acquisition

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

IOOF 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 in cost savings before FY22, yet it seems a difficult business model to reinvent given the backdrop of increasing regulation.

REA offloads Asian stakes

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.

In exchange, REA will get an 18% stake in PropertyGuru and one seat on the board. Management highlighted this as a ‘unique opportunity to create the most compelling digital classifieds company in South East Asia’.

US markets closed for Memorial Day

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.

Meanwhile, gold delivered its biggest monthly gain since July.

Back home on the ASX, the ASX 200 is tipped to open lower on Tuesday according to the latest SPI futures.

The Golden Rules of Investing

We might be experts in retirement, but with combined financial advice experience of 35+ years, we’ve nearly seen it all. 

In mid-2023, our senior team at Wattle Partners Financial Planning put the finishing touches on a brand-new report “The Golden Rules of Investing“.

In this free report, we outline the key principles that determine all of the portfolio construction and investment decisions of Wattle Partners. Collated over decades, this paper should be seen as a work-in-progress, constantly under review in light of the ever-evolving nature of markets. 

You’ll find the free report on my Author page. Simply click the button below to view the Golden Rules.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.


Disclosure: At the time of publishing, Drew owns shares in Link and Nuix.

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Wattle Partners is a financial advice firm, servicing clients around Australia, specialising in retirement planning (pre and post retirement). 

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