Sigma Healthcare enjoyed a strong debut as a merged entity with Chemist Warehouse, marking a significant milestone for the pharmaceutical industry. The S&P/ASX 200 edged up 4.7 points, or 0.1 per cent, briefly touching an intraday peak of 8575.20 points. Mining stocks offset losses in eight of the 11 industry sectors.
A major highlight was Sigma Healthcare, which surged 5.4 per cent on its first day of trading post-merger with Chemist Warehouse. The newly formed entity launched as the 27th largest listed company, boasting a market capitalisation of nearly $31.8 billion. Enthusiasm surrounding its debut drove significant activity with over 300 million shares changing hands.
BHP Lead climbed 2.1 per cent, while Fortescue and Rio Tinto gained 1.8 per cent and 1.1 per cent, respectively. Battery minerals supplier Liontown Resources saw a 9.2 per cent jump, with WA-based Mineral Resources surging 7 per cent.
Elsewhere, Temple & Webster posted a 24 per cent increase in first-half sales. The online furniture retailer’s strong performance saw its stock leap 13 per cent. Banks delivered mixed results. Commonwealth Bank of Australia rose 0.5 per cent to a record high, with NAB following suit, up 0.3 per cent. Meanwhile, Westpac and ANZ ended the session unchanged.
Qantas suffered a 2 per cent decline to $9.32 after Macquarie downgraded its rating from ‘buy’ to ‘neutral,’. The research note warned that favourable market conditions might not last much longer.
Insurance giant IAG plummeted 12.6 per cent despite posting a 91.2 per cent surge in first-half profits. Similarly, Treasury Wine Estates, owner of Penfolds, faced a 5.7 per cent share price decline.
Overnight, US markets continued to struggle, with the S&P 500 shedding 0.3 per cent and the Dow Jones falling 225 points, or 0.5 per cent. The Nasdaq managed to inch up slightly by 0.1 per cent. Higher-than-expected inflation figures in the US fuelled uncertainty, with the latest data showing prices for essentials like fuel and eggs rose more than anticipated. January’s inflation rate hit 3 per cent, exceeding the expected 2.9 per cent.
Following the report, market sentiment shifted, with traders increasing their bets that the US Federal Reserve might delay or forgo rate cuts this year. The probability of no cuts at all in 2024 climbed to 29 per cent, up from 20 per cent just a day earlier.
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