The S&P/ASX 200 (ASX: XJO) didn’t follow global markets higher on Thursday, finishing down 0.4% as CSL Limited (ASX: CSL) dragged both the healthcare sector, down 5.1%, and the market lower.
CSL down on acquisition
The reason was the completion of CSL’s capital raising at an 8% discount to the share price, which naturally sent shares down 8.2%.
Management confirmed that institutions had delivered the $6.3 billion it was expecting for the Vifor Pharma purchase.
Most other sectors finished lower, but technology outperformed, gaining 2.1% behind the likes of Hub24 Ltd (ASX: HUB) and Netwealth Group Ltd (ASX: NWL) which both moved 3% higher.
This was despite a massive 366,000 in new jobs gained in the month of November, sending unemployment down to 4.6% and bond rates sharply higher.
ASX banks in the news
ANZ Banking Group Ltd (ASX: ANZ) admitted to shareholders that they ‘got it wrong’ on their lending book, failing to capitalise on the booming loan market in 2020 and 2021 due to processing delays and technology.
Sticking with the banks, the Commonwealth Bank of Australia (ASX: CBA) finished 0.1% lower and announced another 20 basis point increase to its five year fixed-rate home loans.
RBA speaks
The Reserve Bank Governor spoke for the last time for several weeks, once again reiterating that Australia was very different to the US.
He compared the 6.8% US inflation rate to just 2.1% in Australia, noting that this is the first time in six years it is even in the 2-3% target band despite massive supply chain disruptions.
Bond buying is set to end in May 2022 should all go according to plan, but rate hikes are still at least back into 2023.
BHP-Woodside oil merger approved, IGO expands nickel assets
The ACCC formally approved the BHP Group Ltd (ASX: BHP) and Woodside Petroleum Limited (ASX: WPL) oil tie-up.
Meanwhile, IGO Ltd (ASX: IGO), formerly Independence Group, announced it had finalised a deal to buy nickel miner Western Areas Ltd (ASX: WSA) for an equivalent price of $3.36 per share.
This vastly expands IGO’s presence in the important sector for the decarbonisation trend.
Qantas ready to pounce
Qantas Airways Limited (ASX: QAN) announced a first-half trading update, confirming a slight improvement in its debt position, falling to $5.65 billion from a peak of $6.4 billion, with all 11,000 staff now back on deck.
Management still expect a first-half loss of up to $300 million but see domestic flights beyond COVID-19 levels before June. Global travel is expected to recover more slowly, improving to 75% in the second half.
ASX 200 today
Looking ahead, the ASX 200 is set to open higher this morning despite a negative lead from US markets overnight.
