The S&P/ASX 200 (ASX: XJO) followed a strong global lead to finish 1.3% higher as investors digest Merck’s potential COVID-19 treatment.
ASX travel takes off
Positive news in the vaccine rollout following Prime Minister Morrison’s border opening last week meant the consumer discretionary sector was among the top performers, up 1.7%.
Within the sector, it was all about travel as Flight Centre Travel Group Ltd (ASX: FLT) gained 9.6%, Corporate Travel Management Ltd (ASX: CTD) 3.3% and Webjet Limited (ASX: WEB) 3.0%.
IDP Education Ltd (ASX: IEL) was another major beneficiary, up 8.6%, with the student placement company ready for a boom as overseas students return.
It was another ‘value’ rally with the healthcare sector the only detractor as investors once again price in a strong economic recovery.
CBA buyback oversubscribed
Shares in Commonwealth Bank of Australia (ASX: CBA) jumped 5.1% after management confirmed its off-market share buyback was four times oversubscribed.
$24 billion of shares were tendered for a $6 billion share buyback, with the 14% maximum discount applied. The Board were forced to reduce all applications by 79.4% but will repurchase all shares of those holding less than 20 after the tender.
Nick Scali doubles size
Shares in furniture retailer Nick Scali Limited (ASX: NCK) jumped over 10.4% after announcing the acquisition of Plush Sofas from Greenlit Brands for $103 million.
The deal will double Nick Scali’s store network from 46 to 108 as it seeks to extract more margin out of its dominant position.
Boral set to return $3 billion
Shares in Boral Limited (ASX: BLD) also added another 4.2% as the Seven Group controlled entity continues to release value to shareholders.
Management confirmed as much as $3 billion in capital will be returned to shareholders in the coming months, representing almost half of Boral’s market capitalisation.
The group has successfully sold its US building products, roofing and potentially fly ash business into a strong US construction environment, bringing an end to its ill-fated expansion under the previous CEO.
Property on the up
The property sector was the other major beneficiary with open borders, between most of Australia and the rest of the world, along with fewer restrictions on movement set to hark a recovery in retail spending.
Vicinity Centres (ASX: VCX) finished 3.0% higher along with Scentre Group (ASX: SCG), up 2.4%, both of whom are shopping centre owners.
ASX 200 today
The ASX 200 is tipped to open lower on Tuesday after all three US benchmarks fell overnight. The tech-heavy Nasdaq fared the worst, tumbling 2.1%. To find out more, check out my US stock market report.
