After the unexpected end of Victoria’s lockdown the only way was up for the market, with the S&P/ASX 200 (ASX: XJO) gaining 0.3% to start the week.
Whilst not a large gain it hid a further divergence in cyclical versus defensive sectors with materials, energy, financials and utilities all up strongly, but healthcare, tech and real estate left behind.
The standouts were in base metals with more stimulus expected after China’s GDP printed at ‘just’ 4.9%, with Nickel Mines Ltd (ASX: NIC) and Orocobre Limited (ASX: ORE) both gaining close to 5%.
Aristocrat’s big acqusition
But it was all about the ASX takeovers and deals on Monday, led by Aristocrat Leisure Limited (ASX: ALL). The maker of poker machines entered a trading halt after agreeing to purchase gambling software company Playtech for $3.9 billion; $1.3 billion in new equity will be raised to fund the deal.
Hub24 sends the Class share price soaring
Meanwhile, platform provider Hub24 Ltd (ASX: HUB) fell 0.9% after announcing the acquisition of complementary service provider Class Ltd (ASX: CL1). Class is known for its ownership provision of the Class Super SMSF accounting platform and ownership of Top Docs.
The Class share price soared 61.3% on the news as it looks to be a perfect bolt-on acquisition for Hub as the platform expands its services to financial advisers.
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Zip hands in quarterly numbers
Second-tier buy now pay later provider Zip Co Ltd (ASX: Z1P) reported record transaction revenue in the first quarter, which hit $136 million, up nearly 100% on the prior year.
The strength came from a similar doubling of quarterly transactions processed through the platform to $1.9 billion on a record 14.7 million total transactions.
Customer numbers and merchants continue to show resilience in the face of huge competition, up 82% and 71%, respectively, with the US rebranding from Quadpay to Zip now complete. Zip shares fell 1.5% despite the positive news.
Praemium delivers
Hub 24 competitor Praemium Ltd (ASX: PPS) rallied 6.9% after joining Netwealth Group Ltd (ASX: NWL) with record quarterly platform inflows of $1.66 billion, taking total assets under administration 46% higher than 2020’s levels. Managed accounts remain the most popular destination, up 58%.
NZ inflation hits record
Finally, New Zealand inflation hit a multi-decade high of 4.9% year-on-year as fuel, housing and food prices hit the closed border economy. Bond rates shot up after the recent interest rate decision.
ASX 200 today
Looking ahead, the ASX 200 is set to take a backwards step when the market opens on Tuesday. This comes following a mixed lead from US markets overnight.
