ASX 200 midday update: Chalice Mining jumps, Zip sinks on bearish broker note

At lunch on Thursday, the S&P/ASX 200 Index (ASX: XJO) is on course to record a small gain. The benchmark index is currently up 0.3% to 6,615.7 points.

Here’s what is happening on the ASX 200 today:

Bendigo and Adelaide Bank’s acquisition

The Bendigo and Adelaide Bank Ltd (ASX: BEN) share price is trading lower at lunch despite the announcement of an earnings accretive acquisition. The company has agreed to acquire the investment lending portfolio of Australia and New Zealand Banking Group Ltd (ASX: ANZ). Bendigo and Adelaide Bank will pay an “immaterial premium over book value” for the $715 million investment lending portfolio.

Chalice Mining jumps

The Chalice Mining Ltd (ASX: CHN) share price is surging higher today after the release of a drilling update. According to the release, a new nickel-copper-PGE sulphide zone has been intersected in initial drilling at the Dampier target, ~10km north of the Gonneville Deposit. Management notes that this is the first significant indication of orthomagmatic sulphide mineralisation outside of the Gonneville Deposit and is considered an exciting result.

Zip shares sink on bearish broker note

The Zip Co Ltd (ASX: ZIP) share price is sinking on Thursday. This appears to have been driven by a broker note out of UBS this morning. According to the note, the broker has retained its sell rating on the buy now pay later provider’s shares and cut its price target by 50% to 45 cents. UBS is concerned that Zip could inadvertently worsen its credit performance if it raises fees in an effort to improve profitability.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Thursday has been the Chalice Mining share price with a 10% gain following the company’s drilling update. Going the other way, the EML Payments Ltd (ASX: EML) share price is the worst performer with a 9% decline. This may have been driven by a combination of weakness in the payments industry and potential profit taking after a strong gain yesterday.

The post ASX 200 midday update: Chalice Mining jumps, Zip sinks on bearish broker note appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why is the EML Payments share price sinking 9% today?
• Zip share price cops 6% slashing as analyst fears grow
• Bendigo Bank shares rise after going long on leverage with ANZ lending acquisition
• Chalice Mining share price leaps 13% on new exploration results
• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended EML Payments and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Bendigo and Adelaide Bank Limited and EML Payments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/oK7GP2i