M&A Activity Boosts Markets: ASX Market Recap 25th March

It was almost a clean sweep on the boards today, with all 11 sectors finishing the day higher, with the ASX 200 index ending the session 41.3pts. or 0.53% higher to close at a two-week high of 7,811.90.

The Real Estate (+1.76%) sector continued its upward rise as the interest-rate-sensitive sector continues to benefit with investors pricing in several interest rate cuts during 2024. Goodman Group (+3.93%) continues to lead the pack, while Mirvac Group (+2.24%) and GPT Group (+1.56%) were a couple of the other big gainers. The sector is up 9.80% during March, second only to the Technology (+10.86%) sector.

Energy (+1.13%) stocks closed higher on Monday as oil prices increased. Crude Oil is trading above US$81.00, reversing a recent decline on signs of a tightening market. Woodside Energy (+1.18%), Santos (+1.07%) and Yancoal Australia (+2.48%) were some of the best performers. Healthcare (+1.01%) was the other big mover, thanks to a jump in CSL (+0.98%) and Cochlear’s (+1.68%) share price, while the Discretionary (-0.01%) sector saw the slimmest of all drops.

Today was a busy day for takeover offers. Oil and gas contractor Mma Offshore received an offer from Cyan Renewables to buy the company at $2.60 per share, an 11% premium to its last closing price. MMA Offshore shares rose 10.6% to $2.60 on the back of the announcement. The board of McGrath Holding Company has recommended that shareholders approve a takeover offer from Knight Frank and Bayleys of $0.60 per McGrath share. The company’s share price is 24.4% to close at $0.585 on the back of the announcement.

ALS (-4.8%) shares fell after announcing plans to take full control of European drug research business Nuvisan. “Following a strategic review of Nuvisan, ALS has determined that taking full control and ownership of Nuvisan provides the best opportunity to deliver earnings growth and maximum shareholder value optionality,” the company said.