At lunch on Friday the S&P/ASX 200 Index (ASX: XJO) is on course to end the week with a day in the red. The benchmark index is currently down 0.35% to 6,613 points.
Here’s what is happening on the market today:
Bega Cheese share price jumps.
The Bega Cheese Ltd (ASX: BGA) share price is jumping higher today after completing its institutional placement and the institutional component of its entitlement offer. Bega Cheese has raised approximately $284 million at a 9.1% discount of $4.60 per new share. The proceeds will be used to acquire Lion Dairy & Drinks for $534 million. This bolsters its portfolio with milk-based beverages such as Dare and Farmers Union, Yoplait yoghurts, Pura milk, and Juice Brothers juices.
Travel shares tumble.
A number of travel shares such as Flight Centre Travel Group Ltd (ASX: FLT) and Webjet Limited (ASX: WEB) are tumbling lower on Friday. This is after concerns were raised with the data from the AstraZeneca COVID-19 vaccine candidate. This follows news of a manufacturing error which led to half doses being given to a certain group. As this group is filled with under 55s and therefore lower risk, there are concerns that the vaccine may not be as effective for higher risk individuals. Another trial is expected to be undertaken to prove its efficacy.
Energy shares drop.
Energy shares such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) have come under pressure today after oil prices pulled back. According to Bloomberg, overnight the WTI crude oil price dropped 1.6% to US$44.99 a barrel and the Brent crude oil price dropped 1.8% to US$47.73 a barrel. The S&P/ASX 200 Energy index is down 1.5% at the time of writing.
Best and worst ASX 200 performers.
The best performer on the ASX 200 on Friday has been the Bega Cheese share price with an 8% gain. Investors have responded positively to its plan to acquire Lion Dairy & Drinks for $534 million. The worst performer on the index has been the Webjet share price with a 4.5% decline due to the COVID vaccine news.
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More reading
- Why the Helloworld (ASX:HLO) share price is sinking lower today
- This expert thinks the oil price could surge to US$196 a barrel in 2021
- Bega Cheese (ASX:BGA) share price jumps 10% on Lion Dairy & Drinks acquisition
- ASX 200 expected to drop lower amid COVID-19 vaccine concerns
- 5 things to watch on the ASX 200 on Friday
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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