Defensive earnings remained sought after on Tuesday with the healthcare sector outperforming once again, adding 1% behind CSL Limited (ASX: CSL) which finished 1.3% higher.
Growing global outbreaks of the Delta strain have shaken markets but the S&P/ASX 200 (ASX: XJO) was able to overcome an initial fall of over 1.2% to finish just 0.5% lower.
Energy and materials were once again the hardest hit with both falling by more than 1%, albeit with mixed results between companies.
Oil Search gets a bid
Oil Search Ltd (ASX: OSH) gained 6.3% after revealing the worst kept secret that Santos Ltd (ASX: STO) had made an offer to merge with the company.
The offer valued Oil Search at around $4.25 per share with existing shareholders to own 37% of the combined entity. Management welcomed the offer but suggested it didn’t quite represent fair value.
I’d suggest traders keep an eye on this one, however, Australian commodity companies don’t have a great track record in mergers.
BHP’s FY21 update
Sticking with mining, BHP Group Ltd (ASX: BHP) fell 2.5% despite reporting record exports and quarterly production of 72.8 million tonnes of iron ore.
This represents 9% growth on the previous quarter, the reverse of key competitor Rio Tinto Limited (ASX: RIO), with management confirming unit cost forecasts of $US13 to 14 per tonne remains on target.
JB Hi-Fi profit soars
Electronics and white goods retailer JB Hi-Fi Limited (ASX: JBH) jumped 3.7% after announcing an FY21 business update, revealing a 68% increase in financial year profit to $506 million.
Management reported ‘strong sales momentum’ with revenue up 12.6% to $8.9 billion for the year and earnings increasing 54% to $743 million.
Interestingly, online sales jumped 78% but remain at just 12% of total sales despite the pandemic, suggesting more margin improvement and growth may still be possible.
Crown ‘not suitable’ to hold gaming license
Counsel for the Royal Commission into Crown Resorts Ltd (ASX: CWN) predictably recommended its Victorian license be withdrawn, once again sending the share price lower, down 2.6%.
The real advice comes in a month’s time when the recommendation is handed down.
Hub24 delivers record inflows
Investment platform Hub24 Ltd (ASX: HUB) continued its recent record run, adding another $3.9 billion in quarterly inflows, taking assets under administration to $41.4 billion, supported by a number of recent acquisitions; shares fell 2.4% on the news.
Ramsay’s offer rejected
Ramsay Health Care Limited (ASX: RHC) has been rebutted on its takeover offer for Spire Healthcare in the US, with shareholders rejecting the $3.9 billion bid despite both board and major shareholder support. Ramsay shares finished the day 0.6% higher.
ASX 200 today
Looking ahead, the ASX 200 is set to open higher on Wednesday, following a positive lead from US markets overnight after all three major indices staged a strong recovery.
