ASX Trading Wrap: $9 billion Altium takeover bid, AMP gains on earnings, while Graincorp slumps
Rene Anthony
Key takeaways:
The local share market turned around its losses this week, which were originally driven by above-forecast inflation data out of the United States
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Which shares excelled?
The market has seen some notable performers in recent trading sessions. Altium (ASX: ALU), an electronics design software firm, saw its shares surge after the company’s board unanimously endorsed a $9.1 billion takeover bid from Renesas Electronics, a Japanese semiconductor company. The offer, valued at $68.50 per share, represents a nearly 34% premium to Altium’s last closing price before the announcement. Shares are up 27% this week.
Temple & Webster (ASX: TPW) also enjoyed a boost, with the online furniture and homewares retailer posting a record $254 million in revenue for the first half of the financial year 2024. The company’s EBITDA margin reached the upper end of its guidance for the year, signaling strong operational performance. Shares are up 20.5% this week.
Downer (ASX: DOW) shares reached a 15-month high following a 6% increase in net profit for the half-year. The company announced an ambitious cost-cutting program, aiming to save an additional $75 million by the end of FY25, adding to a previously announced goal of $100 million in savings. Shares are up 16.8% this week.
AMP (ASX: AMP) revealed an underlying net profit after tax of $196 million, up 6.5% from the previous corresponding period. Despite a downturn in earnings from its banking division due to margin pressures, the ‘Platforms’ segment reported a significant 38.5% jump in revenue. AMP’s management is looking to reduce the company’s cost base by $120 million by the end of 2025. Shares are up 13.2% this week.
Other winners included Audinate Group (ASX: AD8), JB Hi-Fi (ASX: JBH), Cettire (ASX: CTT), and Seven Group (ASX: SVW).
Which shares dragged on the market?
Strike Energy (ASX: STX) reported a setback at its well in South Erregulla, with testing operations failing to yield expected results. This led to a shut-in and observed increases in tubing head pressure and temperature drops, indicating potential issues.
Data#3 (ASX: DTL), despite achieving record half-year earnings, fell short of market expectations. The tech company’s gross profit of $130.6 million did not meet the consensus estimate of $134 million set by UBS, and the company cited slower customer ordering and decision-making processes.
Graincorp (ASX: GNC) was another to face challenges, forecasting an underlying net profit between $65 million and $95 million, significantly below the $250 million reported in the prior year. This outlook is due to a decrease in grain production on the eastern seaboard and softer margins.
Shares in Pro Medicus (ASX: PME), Objective Corporation (ASX: OCL), Tabcorp (ASX: TAH), Seek (ASX: SEK), and CSL (ASX: CSL) also slid over the week, reflecting various market pressures and operational challenges.
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