ASX 200: top 5 weekly share price gains
Mergers and acquisitions news boosted the share prices of Pacific Brands and Broadspectrum, which led gains among companies in the S&P/ASX 200 Index last week.
The benchmark index was up 0.3% over a shorter trading week.
Here are the winners and losers in the ASX 200 for the week ended Friday, April 29.
Top 5 share price gains
Weekly rise: 32.4% to $1.145
Share price movement past 12 months: Up 148.9%
Pacific Brands (ASX: PBG), which markets brands such as Bonds, Sheridan and Berlei, received a $1.15-per-share cash takeover offer from US clothing giant HanesBrands.
The offer price was 22% higher than the stock’s last closing price of 94 cents prior to the announcement on the Australian Securities Exchange (ASX) on April 28.
Its directors have unanimously recommended shareholders accept the buyout offer.
Pacific Brands plans to pay shareholders a fully franked special dividend of 9.4 cents per share if the deal proceeds, which could provide an additional benefit of up to 4 cents per share for those who receive full franking credits.
The cash offer will be reduced by the amount of the special dividend.
See broker recommendations, shareholder return and more for PBG
Weekly rise: 18.4% to $1.48
Share price movement past 12 months: n/a
The board of Broadspectrum (ASX: BRS) changed their stance on the revised takeover offer by Ferrovial, now recommending shareholders accept the $1.50-per-share cash offer from the Spanish infrastructure group.
The recommendation came after the Supreme Court of Papua New Guinea ruled last week that the detention of asylum seekers at the processing centre on Manus Island was unconstitutional.
The PNG government then ordered that it be shut down.
Broadspectrum, which receives revenue from managing the detention centre, said the court ruling increased near-term uncertainty for its contract with Australia’s immigration department and could impact its future earnings.
“[T]he opportunity for shareholders to receive the certainty of $1.50 per share in cash in the face of these uncertainties may be attractive,” it said.
See broker recommendations, shareholder return and more for BRS
Weekly rise: 9.4% to $2.90
Share price movement past 12 months: Up 127.5%
Gold miner Regis Resources (ASX: RRL) did not file any price-sensitive ASX announcement last week.
The company said on April 15 that its cash and bullion rose to $106.7m on March 31, from $98.5m at the end of December.
Regis said it produced 75,656 ounces of gold in the third quarter, the fourth consecutive quarter of higher output, at a cost below the lower end of its guidance.
See broker recommendations, shareholder return and more for RRL
Weekly rise: 7.3% to $161
Share price movement past 12 months: Up 166.6%
Blackmores’ (ASX: BKL) net profit after tax for the nine months to March 31 surged 145% from a year ago to $76m, as all regions and brands delivered strong growth.
Nine-month sales jumped 63% to $532m, underpinned by increasing consumer demand in Australia and Asia, the vitamins and health supplements maker said.
See broker recommendations, shareholder return and more for BKL
Spark New Zealand
Weekly rise: 7.3% to $3.38
Share price movement past 12 months: Up 22%
Spark New Zealand (ASX: SPK) last week unveiled major changes to its leadership team, which the telecommunication services provider said will position it for the next phase of growth.
Earlier on April 14, the company welcomed a review by the Kiwi government on the regulations governing New Zealand’s telecommunication industry post-2020.
In particular, the review will look at how much wholesalers that own the fibre and copper lines networks can charge broadband retailers like Spark, Spark said in a statement.
See broker recommendations, shareholder return and more for SPK
Market movers this week
All eyes will be on the release of the Federal Budget 2016 on May 3.
Added to the diary tomorrow is the Reserve Bank of Australia’s decision on the official cash rate.
The May board meeting is particularly in focus after the nation’s consumer price index (CPI) fell by 0.2% in the March quarter, compared to economists’ expectation for a rise of 0.3%.
Deflation opens door for RBA cash rate cut
Meanwhile, some of the major Australian banks will announce their latest financial results this week, starting with Westpac’s (ASX: WBC) half-year earnings today.
Australia & New Zealand Banking (ASX: ANZ) and National Australia Bank (ASX: NAB) will announce their first-half results on May 3 and May 5, respectively, while Macquarie Group’s (ASX: MQG) full-year report will be out on May 6.
The banking sector has a heavy weighting on the ASX 200, meaning any upward or downward movement in their share prices as a result of their earnings announcements might impact the overall ASX 200 performance.
Woolworths (ASX: WOW) is another heavyweight scheduled to update investors with its third-quarter operational performance.
Top 5 share price falls
Mesoblast (ASX: MSB) tumbled 12.7% to $2.19, taking its one-year decline to 37.4%. The regenerative medicine company reported negative operating and investing cash flows of US$22.1m in the third quarter.
A negative cash flow happens when money paid out is more than money received during the same period, and does not necessarily mean loss.
Mesoblast said it spent most of its cash on research and development, and manufacturing commercialisation.
Gold miner Independence Group (ASX: IGO) lost 8.4% to $3.06, after third-quarter unaudited profit after tax slumped to $2.8m from $19.8m a year ago.
Over 12 months, the stock was down 47.7%.
Bank of Queensland (ASX: BOQ) shed 6.4% to $11.25, extending its one-year loss to 13.9%.
The lender hasn’t submitted any price-sensitive ASX statement since April 7, when it unveiled flat net interest margin in its half-year earnings report.
Shares in Western Areas (ASX: WSA) fell 5.3% to $2.50, despite the Mt Alexander mining project making two new discoveries of nickel-copper sulphides.
Western Areas has a 25% interest in the joint venture.
Macquarie Group (ASX: MQG) dropped 5.3% to $63.50, ahead of its full-year earnings release this Friday. Its 12-month share price loss was 19.8%.