Monday’s story carried into trading on Tuesday, with the S&P/ASX 200 (ASX: XJO) gaining another 0.8%.
It was pushed higher primarily by the more cyclical sectors with both mining and energy gaining more than 2%, with the ASX technology sector falling heavily, down 3.5%, following the lead of the Nasdaq.
It was all about iron ore once again, with the price of future deliveries surging the most allowed by the Chinese market, up 10%, as signs of a release on credit growth and a resumption of steel mill operations buoyed the sector.
The result was a 9.8% gain in Fortescue Metals Group Ltd (ASX: FMG) and 4% for BHP Group Ltd (ASX: BHP).
BHP Woodside merger gets the green light
Woodside Petroleum Limited (ASX: WPL) also gained 3.5% as the agreement with BHP to merge their oil and gas assets became official.
A binding sale agreement was signed by both parties, which will take them from being also-rans to among the top 10 oil and gas producers in the world.
The deal is expected to see over US$400 million in synergies and allows BHP to divert to its ‘future focused’ commodities.
Pumping the brakes at Bapcor
Shares in Bapcor Ltd (ASX: BAP) fell by 9.6% after Chief Executive Darryl Abotomey announced the unexpected decision to quit the group, effective February 2022.
The company owns brands including Autobarn and Burson, with the departing CEO confident in the outlook for the next 18 months for the multi-billion company.
Pinnacle’s big deal
Boutique investment house Pinnacle Investment Management Group Ltd (ASX: PNI), which runs a multi-affiliate model taking ownership stakes in multiple fund managers, has expanded its presence in the booming private equity market.
The company announced the purchase of a quarter of fast-growing firm Five V Capital, for a total of $75 million, with management set to raise $105 million from shareholders to fund the purchase.
The deal takes assets under management $1.1 billion higher, a drop in the ocean compared to its existing $90 billion under management but in one of the most in-demand sectors in the world.
Kathmandu supply issues
Kathmandu Holdings Ltd (ASX: KMD) shares were down over 1% after new CEO Michael Daly highlighted supply chain issues facing its hiking boots and wetsuits businesses, Oboz and Rip Curl.
The ASX retailer flagged a surge in demand for wetsuits, which is exceeding supply from its Vietnam-based production facility.
ASX 200 today
Looking ahead, the ASX 200 is set to open broadly flat on Wednesday. This comes after US stock markets were mixed overnight. To find out more, check out my US stock market report.
