The S&P/ASX 200 (ASX: XJO) suffered a 1.6% loss during the week, while all three US benchmarks also ended lower.
Here are my three key investor takeaways from the week.
Takeovers aren’t always a given
Searching for the next takeover target is a popular pastime for brokers and DIY investors alike, but the week offered a warning shot confirming it doesn’t always go to plan.
Just like the Link Administration Holdings Ltd (ASX: LNK) and AMP Ltd (ASX: AMP) offers in 2020, Hansen Technologies Limited (ASX: HSN) shares tanked after their bidder walked away.
The Santos-Oil Search merger is finally going ahead, however, the IRESS Ltd (ASX: IRE) offer from EQT appears to be stalling.
Boring week when bonds are news
After a chaotic reporting season, the focus has turned back to both thematic, political and economic events. Yet with central banks not moving anyway, a number of bond issues actually made the news.
The likes of Woolworths Group Ltd (ASX: WOW), AMA Group Ltd (ASX: AMA), and Qantas Airways Limited (ASX: QAN) all raised significant capital, with Woolies tying theirs to an improvement in their sustainability practices.
Whilst it may reflect a slow news week it is also evidence that boards are taking the opportunity to replace expiring higher-cost debt with borrowing near all-time lows, something that bodes well for long-term profitability.
Commodity prices going crazy
But the week was all about commodities. It started with the falling iron ore price, before a number of lesser-known elements spiked in value for multiple reasons.
Whether it was the uranium price jumping on the massive purchases from an exchange-traded fund or alumina benefitting from another military coup, the sentiment is there, but is it sustainable or another run in momentum?
