ASX edges towards record highs; Betmakers up 21pc

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The ASX200 finished Thursday’s session at its highest point so far this year as blue chip stocks built strong momentum.

The local market ended the day up 0.3 per cent to 7,592.8, placing the ASX200 ahead by 0.04 per cent for the year-to-date. The index last traded at these levels on January 4, when the ASX200 closed at 7589.80.

CSL shares gained 0.9 per cent. Credit:The Age

The big banks led the way, with financial stocks up 1.2 per cent for the session and led by Commonwealth Bank, closing 1 per cent higher to $108.35.

The real estate sector finished the day 2.1 per cent higher, with Stockland maintaining its outlook for steady growth at a quarterly update, and finishing the session up 2.4 per cent to $4.20.

Healthcare stocks also continued a rally which began on Wednesday after private equity giant KKR and a consortium of investors lobbed a $20 billion offer for private hospital operator Ramsay Health Care.

Citi and Morgans analysts noted the bid was ‘opportunistic’ given Ramsay’s earnings have been under pressure due to the pandemic, but there was consensus among stock watchers that KKR’s interest in Australian healthcare assets made sense for investors.

Ramsay shares gained another 3.7 per cent on Thursday to close at $82.99. CSL finished the day 0.9 per cent higher to $266.98 after revealing a $US4 billion debt raise.

Pathology operator Sonic Healthcare joined the party with gains of 2.1 per cent to $37.15, while Cochlear was 3.9 per cent stronger to $236.16.

Other major winners for the session included logistics services provider Brambles, up 8 per cent to $10.82 after upgrading its guidance. Wagering software business Betmakers also surged 21 per cent to 78 cents after it confirmed it would be building the platform for a new online wagering business set to be brought to market by a consortium led by News Corp Australia.

Tech stocks took a hit during the afternoon, with accounting platform Xero down 2.4 per cent to $99.30.

It was iron ore miners that were the biggest weight on the index, with BHP sliding 3.1 per cent to $50.70 after it reported a quarterly drop in exports due to labour shortages.

Rio Tinto also fell 1.6 per cent to $116.36, building on losses from Wednesday, when the company also revealed weak shipment numbers.

Goldman Sachs analysts said Rio’s earnings were below consensus but still rated the stock a buy, given the company’s Pilbara iron ore shipments guidance remains unchanged.

“We think the 43Mtpa [million tonnes per annum] Gudai-Darri mine will be almost fully ramped-up by the end of 2022 returning Rio’s Pilbara business to year-on-year growth in the [second half],” analysts Paul Young and Hugo Nicolaci wrote in a note to clients.



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