Australian shares or the S&P/ASX 200 (INDEXASX: XJO) fell 0.6% on Monday despite opening positively, as commodity and energy prices fell across the board. The ASX 200 selloff in energy and materials finished at 5.1 and 4.6 per cent respectively, amid growing concerns about the outlook for the global economy.
Uranium miner Paladin Energy Ltd (ASX: PDN) was the worst-performing company on the ASX, falling 13.1 per cent, whilst Fortescue Metals Group Ltd (ASX: FMG) and Rio Tinto (ASX: RIO) were down 8.6 and 5.1 per cent, respectively.
US recession fears mounting, ASX 200 under pressure
A number of banks and economists are now pricing in a US recession due to recent interest rate hikes. Healthcare and property were the standout sectors on Monday, gaining 2.4 and 3.5 per cent on hopes that bond yields may have already peaked.
Vicinity Centres (ASX: VCX) upgraded its profit guidance for the year, now expecting 12.6 cents per share on the back of the strength in retail sales. Management cited improved outcomes with rent negotiations and strong cash collections as key drivers behind a $245 million increase in their property values. Vicinity shares finished 6.3 per cent higher, providing some relief for the ASX 200 index.
PointsBet gets US backing, Cooper to buy Orbost plant, InfoMedia opens books
Online sports betting company PointsBet Holdings Ltd (ASX: PBH) shares surged by more than 18.6 per cent after confirming it had issued $94 million in new shares to SIG Sports Investment Corp, a group backed by Susquehanna. This represents 12 per cent of the listed shares in the company and perhaps a floor for the company that has been in freefall this year.
Automative after-market software provider InfoMedia (ASX: IFM) is the centre of a bidding war, with three interested parties granted access to its books in order to undertake due diligence. This includes TA Associates, Battery Ventures and Solera. Infomedia shares gained 7.4 per cent.
The biggest news of the day in the ASX 200 was that Cooper Energy (ASX: COE) entered a trading halt in order to announce the acquisition of APA Group’s (ASX: APA) Orbost Gas Processing Plant. The asset had struggled to reach nameplate capacity for several years and this is long-awaited deal that would allow Cooper to move up the production chain. The deal will come at a cost of $270 million, slightly above the $236 million book value, with Cooper to undertake a $244 million capital raise to fund the deal.
