It was another difficult day for the domestic market with the Nasdaq entering a bear market and Chinese technology continuing to sell off, putting further pressure on sentiment and the ASX’s position as a ‘risk on’ market.
Ultimately the S&P/ASX 200 (ASX: XJO) fell another 0.7% on Tuesday with energy and materials the biggest detractors, down 2.9% and 3.7%.
BHP & Rio Tinto shares weaken
The materials sector was hit heavily by the announcement of lockdowns throughout Shanghai and Shenzen with the market reminded that both supply and demand have a role in setting commodity prices. BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) were among the hardest hit, falling 4.2% and 3.9%, respectively.
Uniti share price soars on takeover bid
On the positive side, the financials and communications sector joined three others in posting positive returns of 1% and 0.7%, with a bid for Uniti Group Ltd (ASX: UWL) sending the share price more than 27% higher.
The bid came from NZ-based infrastructure group Morrison & Co, who put a $4.50 value on the company when launching a non-binding, conditional bid for one of the fastest-growing broadband networks in the country.
Zip freefall continues, Healius begins buyback
Shares in Zip Co Ltd (ASX: Z1P) fell another 9.3% as the technology selloff showed no signs of slowing down, with concerns about the company’s access to cheap capital in the US overcoming its still significant growth.
Private hospital group Healius Ltd (ASX: HLS) gained 3.3% after announcing a $100 million on market share buyback that suggests management view the business as being undervalued by the market.
Rio lobs offer for Mongolian asset
The highly difficult and increasingly expensive Oyu Tolgoi copper mine part-owned by Rio Tinto in Mongolia is in focus once again, with the group lobbing a bid to purchase the asset outright for $3.7 billion; analysts have viewed this as a positive given the outlook for copper and difficulties with their partners in the project.
Meanwhile, the takeover of underperforming long-short manager VGI Partners Ltd (ASX: VGI) by Regal has been extended to the end of March as the two parties try to agree on terms at a time when equity performance continues to struggle.
In positive news for the tourism sector, the cruise ship ban was lifted this week.
ASX 200 today
Looking ahead, the ASX 200 is expected to rise when the market opens this morning, following a positive lead from US stock markets overnight. To find out more, check out my US stock market report.