Live: ASX 200 at two-week low as BHP, miners fall; APM confirms Madison Dearborn bid; GQG rises as funds lift

ASX 200 falls 1.6 per cent this week. Iron ore futures fall. GQG rises as funds soar. APM extends trading halt ahead of new bid. Magellan's outflows up. Oil above $US90 as geopolitical tensions rise.

Economic and corporate commentary are driving equity investor sentiment. Picture: Gaye Gerard

Welcome to the Trading Day blog for Friday, April 5. The ASX 200 index closed 0.6 per cent lower at 7773.30 points as heavyweight miners fell. Global investors await US jobs data. US indexes dropped overnight on hawkish rate commentary and rising geopolitical tensions.

The Aussie dollar is near US65.73c.

Updates

4:29 pm April 5, 2024

ASX 200 falls 0.6pc to two-week low

David Rogers

Australia's share market reacted negatively to a sharp reversal of intraday strength on Wall Street after hawkish comments from FOMC's Kashkari.

The S&P/ASX 200 index ended down 0.6 per cent at 7773.3 points, its lowest daily close in two weeks, after falling as low as 7741.5 in chopping trading.

The index lost 1.6 per cent for the week, its second worst week in the five-month rally that saw the index rise 17 per cent to a record high of 7910.4.

All sectors fell on Friday with the tech, materials, consumer staples and communications sectors underperforming the index.

The top five drags were BHP, CSL, Macquarie, Goodman and CBA.

Focus turns to US non-farm payrolls data later Friday.

3:53 pm April 5, 2024

Apple lays off 614 Silicon Valley workers

Agency writers

Apple Inc is laying off more than 600 workers in Silicon Valley, weeks after pulling the plug on its secretive, self-driving EV.

Those are the first significant job cuts for Apple since the pandemic.

According to a filing with the state of California, 614 employees were informed on March 28 that they’ll lose their jobs, effective May 27. The San Francisco Chronicle first reported the layoffs.

In February, Apple reportedly abandoned its years-long plans to build an autonomous electric vehicle. At the time, Bloomberg News reported that some employees on the project would be shifted to other departments, while others would likely be laid off.

While the state filing did not specify the car project, the layoffs will affect workers at eight satellite offices in Santa Clara, California, though none at Apple’s headquarters in Cupertino, California. Apple did not immediately respond to a request for comment.

– Dow Jones

3:18 pm April 5, 2024 Highlight

No Takeover Panels hearing on Pact

Megan Neil

The Takeovers Panel will not conduct proceedings into billionaire Raphael Geminder's $289m takeover of listed packaging company Pact Group, following an appeal by two Pact shareholders.

After making an interim order last month stopping Mr Geminder from processing shares from Pact investors through a share sale facility, the Takeovers Panel this week said it had undertakings from his Bennamon company to provide further disclosure and offer certain Pact shareholders withdrawal rights.

The panel on Friday said it does not object to the form of Bennamon's disclosure in a further supplementary bidder's statement, not in a letter also sent to shareholders. ASIC has also granted relief in respect of the withdrawal rights, it added.

"As a consequence of ASIC’s relief and the undertakings being fulfilled by Bennamon,
the panel concluded there was no reasonable prospect that it would make a declaration of unacceptable circumstances. Accordingly, the Panel declined to conduct proceedings."

3:10 pm April 5, 2024

Iron ore to average $US100-110: CBA

Megan Neil

Iron ore prices are expected to average between $US100 and $US110 a tonne for the remainder of the year as China’s steel demand and production will tracks sideways, CBA commodities analyst Vivek Dhar says.

Mr Dhar says China’s steel consumption will continue to face headwinds from the property sector and tailwinds from the infrastructure sector.

"We anticipate infrastructure‑related steel demand will offset another annual decline in property‑related steel demand. Our flat steel demand outlook for China underpins our view that China’s steel output and iron ore demand will track sideways in 2024."

Mr Dhar says iron ore prices may fall below $US100 for brief periods in coming months as negative steel mill margins pressure China's steel output and iron ore demand lower.

"We see upside risks to our outlook later this year if China commits to additional stimulus to defend their economic growth target of ‘around 5 per cent’ for 2024."

1:59 pm April 5, 2024

ASX 200 falls 1pc to two-week low

David Rogers

The S&P/ASX 200 share index hits a fresh two-week low of 7742.3 as it falls as much 1 per cent, after trimming a 0.9 per cent fall to just 0.4 per cent intraday.

BHP does much of the intraday damage, falling 1.3 per cent after trimming a 1.6 per cent intraday fall to just 0.5 per cent earlier.

Singapore iron ore futures have fallen back below $US96 a tonne after bouncing from $US95.40 to $US104 after China released stronger than expected manufacturing PMI data over the Easter long weekend.

Overall, the local share market has been very weak and choppy for a Friday.

That's despite the face that the important economic data of the month – US non-farm payrolls – are due later Friday.

It comes after a worrisome intraday reversal of strength on Wall Street after less dovish comments from FOMC member Neel Kashkari.

12:30 pm April 5, 2024

Rapid GQG client inflows to continue: ECP

Megan Neil

Funds manager GQG Partners can continue to accumulate client flows at a rapid clip, ECP Asset Management partner Damon Callaghan says.

GQG lifted its funds under management to $US143.4bn at the end of March, up from $US137.5bn at the end of February. It reports net flows during the March quarter of $US4.6bn.

Mr Callaghan says GQG's share price is up nearly 70 per cent over the last six months.

"The key reason for the share price rally is a significant increase in the profitability of the business as funds under management has increased from about $US106bn at September 30, 2023, to $US143bn today," he says.

"With all GQG funds generating meaningful alpha over the last 12 months, we believe the business will continue to accumulate client flows at a rapid clip, expanding its profitability and eventually earning a higher PE multiple – as we believe is warranted for a business at this stage of its lifecycle.”

GQG shares are up 3.2 per cent to $2.27.

12:07 pm April 5, 2024

ASX 200 trims sharp intraday fall

David Rogers

Australia's share market more than halves a sharp intraday fall to be down only a third as much as the S&P 500 after its sharp fall on Thursday.

The ASX 200 index is down 0.4 per cent at 7784.3 after falling as much as 0.9 per cent to a two-week low of 7744.1 after the S&P 500 fell 1.2 per cent.

The ASX 200 is down 1.5 per cent for the week, on track for its first fall in the past three weeks. It's the second worst week since the massive five-month rally in late October. The index rose as much as 17 per cent from a 17-month low of 6751.3 in late October to a record high of 7810.5 in early April.

All sectors except energy and property remain in the red but big banks and miners have roughly halved their early falls.

The major banks are down 0.1-0.6 per cent with CBA weakest.

Big iron ore miners are down 0.7-0.8 per cent with Rio Tinto weakest.

GQG Partners leads large cap gains up 4.3 per cent, Ampol, Viva Energy and Pro Medicus are up about 2.5 per cent.

11:39 am April 5, 2024

Trade surplus shrinks as imports jump

David Rogers

Australia's trade surplus shrinks more than expected as imports jump.

The February trade surplus falls to a seasonally adjusted $7.28bn versus $10.5bn expected by economists. It's the smallest trade surplus since September.

January was revised down to $10.06bn from $11.03bn first reported.

11:31 am April 5, 2024

IAG's new system to stop underpayments

Valerina Changarathil

Insurance giant IAG and will cough up a contrition payment of $650,000 as part of an enforceable undertaking with the Fair Work Ombudsman following underpayments to thousands of current and former staff.

In February 2020, IAG's proactive review of payroll processes found 6094 current employees and 14,117 former staff had been underpaid one or more entitlements, including certain overtime, allowances, and superannuation contributions.

IAG repaid some impacted current and former employees in 2022 and 2023 and a further payment has been made to the Commonwealth Government for former employees who could not be contacted after multiple attempts.

The $650,000 is a separate payment to the Consolidated Revenue Fund and falls within IAG's existing $6m provision for its payroll compliance review (as at June 30,2023).

The insurer has apologised to impacted employees who missed out mainly because IAG's payroll system back then required them to submit manual entitlement claims. A time and attendance system will be in place by September to automatically calculate entitlements. IAG shares are flat at $6.37 around 11.30am AEDT.

11:19 am April 5, 2024 Highlight

Instant millionaires from Canva staff sale

Jared Lynch

Canva has made some of its staff instant millionaires after the Australian tech darling finalised a share sale worth $3.6bn.

The share sale was oversubscribed by 150 per cent on its initial target, reaping $US2.4bn ($3.6bn). It was open to all employees who had been awarded shares which had vested in the visual communications company – with The Australian understanding it has made some millionaires, even mid-ranking staff.

Former employees and existing investors also participated in the share sale, which has valued Canva at $US26bn. Goldman Sachs handled the sale, which was initially expected to deliver $US1bn.