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ASX 200 set to rise – AMP, CGC & LNK shares in focus

The S&P/ASX 200 (ASX: XJO) added just 2.4 points on Thursday after the Victorian Government sent the entire state into another lockdown.

The news is expected to hit the economy to the tune of $1 billion but the market remains immune, with the IT sector once again leading the charge, up 1.9%.

Link receives another offer

Link Administration Holdings Ltd (ASX: LNK) looks to have finally received the offer it was seeking, with private equity firm KKR teaming up with Domain Holdings Australia Ltd (ASX: DHG) to lob a bid for the property settlement platform PEXA, which values the entire business at $3 billion.

Link shares moved 1.2% higher with the ~$1.3 billion valuation of Link’s 44% share nearly half its current market cap. The group has set a deadline of 30 May to accept the offer with DHG shares jumping 2.1% on the news.

AMP sued

AMP Ltd (ASX: AMP) was the top performer on Thursday, jumping 8.5% despite being lodged with court proceedings from ASIC in relation to its charging of deceased customers in the past.

AMP is said to have already repaid over $5 million in remediation.

Costa smashed

Avocado and berry producer Costa Group Holdings Ltd (ASX: CGC) was one the worst-performing companies on the ASX on Thursday, falling 24.1% on a trading update after what had been a strong run in 2020.

The sell-off came despite management suggesting second-half performance was ‘marginally ahead’ of the first half.

The international business, including China and Morocco, is beginning to perform well but it was the domestic business struggling with a mixed performance from tomato and citrus farming spooking investors.

Ramsay doubles down on the UK

Ramsay Health Care (ASX: RHC) couldn’t overcome the Victorian shutdowns with a strong acquisition in the UK.

Shares fell 3.5% as the company announced the $1.82 billion acquisition of UK competitor Spire Healthcare (LSE: SPI) as it doubles down on a European recovery.

The deal was at a multiple of 11 times earnings and is expected to deliver significant cost savings with greater scale.

Fisher & Paykel struggles with expectations

Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) fell 6% after releasing FY21 results, announcing an 82% increase in profit to NZ$524 million on 56% revenue growth.

The company refused to provide guidance for FY22, which given its major products including breathing apparatus, was of concern. The dividend was increased 42% to 22 cents per share.

ASX 200 today

According to SPI futures, the ASX 200 is tipped to push 0.8% higher when the market opens on Friday.

The Golden Rules of Investing

We might be experts in retirement, but with combined financial advice experience of 35+ years, we’ve nearly seen it all. 

In mid-2023, our senior team at Wattle Partners Financial Planning put the finishing touches on a brand-new report “The Golden Rules of Investing“.

In this free report, we outline the key principles that determine all of the portfolio construction and investment decisions of Wattle Partners. Collated over decades, this paper should be seen as a work-in-progress, constantly under review in light of the ever-evolving nature of markets. 

You’ll find the free report on my Author page. Simply click the button below to view the Golden Rules.

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Disclosure: At the time of publishing, Drew owns shares in Link Administration.

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Wattle Partners is a financial advice firm, servicing clients around Australia, specialising in retirement planning (pre and post retirement). 

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