The S&P/ASX 200 (ASX: XJO) followed a global lead lower on Tuesday, falling 1.1% at the open and remaining in negative territory throughout the day.
The IT sector was the hardest hit, falling 4.2%, and acting very much like a leveraged proxy for the US Nasdaq index.
The key detractors were Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P), which fell 8.7% and 9.1%, respectively.
The only highlight was the consumer staples sector, which managed a 0.3% gain as Woolworths Group Ltd (ASX: WOW) released the independent assessment of its decision to demerge the liquor and hotels business, which sent shares 1.1% higher.
Boral’s takeover offer
Seven Group Holdings Ltd (ASX: SVW) has lobbed a long-awaited bid for all the shares in Boral Limited (ASX: BLD) for $6.50, representing no premium to the current share price.
Reports suggest that Seven Group is simply seeking to grow its holding to 30%, but under takeover law is required to lodge a formal bid once its shareholding exceeds 19.9%, which it has been for some time.
The Boral board did not recommend accepting the offer, with traders clearly expecting another bidder as shares rose 3.4% on the news.
Dexus swallowing APN
Corporate activity in the property sector continues to gather steam, with Dexus Property Group (ASX: DXS) agreeing to buy APN Property Group Ltd (ASX: APD) for $320 million or 91.5 cents per share.
This represented a significant premium to the latest traded price, sending shares 47.5% higher.
The group manages some $2.9 billion in assets spread across listed REITS and unlisted funds, which include industrial and convenience style assets.
Calix and Pilbara make another lithium deal
Calix Ltd (ASX: CXL) and Pilbara Minerals Ltd (ASX: PLS) have agreed to undertake an assessment for the co-development of a midstream lithium chemical refinery, leveraging Calix’s unique, homegrown technology.
Ultimately, the joint venture aims to produce a specialised lithium sale for direct use in batteries. Pilbara shares finished the day 3.1% lower, while the Calix share price jumped 5.5% on the news.
Rex clarifies misstatement
Regional Express Holdings Ltd (ASX: REX) corrected what appeared to be a major oversight in Monday’s market update, confirming that capacity was 35% off pre-COVID levels, not 35% of pre-COVID levels. Rex shares fell 0.8%.
ASX 200 today
Looking ahead, the ASX 200 is set to follow US markets lower at the open on Wednesday. Pushpay Ltd (ASX: PPH) shares will be on watch as the company hands in its full-year FY21 results.