In today’s briefing:
- EQD | Modest ASX200 Rally Raises Questions About Direction
- Healius Taps The Market. ACL Should Walk
EQD | Modest ASX200 Rally Raises Questions About Direction
- The S&P/ASX 200 INDEX closed up last week (CC=+1), currently uptrending, but the rally is weak, there is a chance that it could fall already this week and close down.
- The index has reached Q2 resistance, that’s the area where the index starts to be OVERBOUGHT, based on the current pattern.
- We see a potential pullback between -1% and -2% from current levels, across 1-2 weeks, this would bring the index down to the 6990-6920 support area.
Healius Taps The Market. ACL Should Walk
- Back on the 20 March, Australian Clinical Labs (ACL AU) announced a merger proposal for Healius (HLS AU), the completion of which would create Australia’s largest pathology provider.
- In its Target Statement on the 4 May, Healius’ board unanimously recommended that Healius shareholders reject the Offer. A forthcoming ACCC decision may also conclude a merger is verboten.
- Now Healius has announced a “capital restructure reset” via issuing new shares at $1.20/share, a hefty 34.6% discount to last close. This breaches a number of prescribed occurrences.
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