ASX Up, Sigma Soars 28% On Merger, NAB Falls

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Post on Nov 07, 2024

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ASX Up, Sigma Soars 28% on Merger, NAB Falls

The Australian share market closed higher on Tuesday, with the benchmark ASX 200 index up 0.6% to 7,382 points. The broader All Ordinaries index also climbed 0.6% to 7,587 points.

Sigma Healthcare (SIG) was the standout performer, surging 28% after announcing a merger with Australian Pharmaceutical Industries (API). The deal, valued at $1.8 billion, will create a pharmaceutical giant in Australia, commanding a significant share of the market.

National Australia Bank (NAB) was the biggest drag on the index, falling 2.6% after announcing a disappointing half-year profit result. The bank’s profit was down 6% on the previous year, reflecting the impact of rising interest rates and a slowdown in the Australian economy.

Other notable movers:

• Qantas Airways (QAN) rose 2.1% after announcing a record half-year profit. The airline benefited from strong travel demand following the easing of COVID-19 restrictions.
• Woodside Energy (WDS) added 1.4% as oil prices rose on the back of geopolitical tensions in the Middle East.
• Fortescue Metals Group (FMG) was down 0.7% after announcing a decline in iron ore shipments.

Market Outlook:

Analysts believe that the Australian share market is likely to remain volatile in the coming months, as investors grapple with rising inflation, interest rates, and geopolitical uncertainty. However, the strong earnings season and robust economic growth in Australia are expected to provide some support for the market.

Key takeaways:

• Sigma Healthcare soared on its merger with API, creating a pharmaceutical giant in Australia.
• National Australia Bank fell after a disappointing half-year profit result.
• Qantas Airways rose on record half-year profit due to strong travel demand.
• Woodside Energy climbed as oil prices rose.
• Fortescue Metals Group declined on lower iron ore shipments.

Overall, the ASX 200 ended the day higher, with the merger news driving strong gains for Sigma Healthcare. However, the market remains volatile, with investors watching closely the global economic outlook and the impact of rising interest rates.