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 0.95% to 5,816.3 points.
Here’s what is happening on the market today:
Mesoblast share price crashes lower.
The Mesoblast limited (ASX: MSB) share price has returned from its trading halt and crashed lower on Friday. This follows the earlier than expected announcement relating to its quest to have remestemcel-L (RYONCIL) approved for paediatric patients with steroid-refractory acute graft versus host disease by the US FDA. As you might have guessed from the share price weakness, Mesoblast wasn’t given approval. Instead, it will have to undertake another trial and prove it is worthy of FDA approval.
Tech shares storm higher.
One area of the market which is on form on Friday is the tech sector. The likes of Afterpay Ltd (ASX: APT) and Xero Limited (ASX: XRO) are charging higher following a positive night of trade on Wall Street’s technology-focused Nasdaq index. At lunch, the S&P/ASX All Technology Index (ASX: XTX) is defying the market weakness and is up a sizeable 1.3%. This is roughly in line with the gains made by the Nasdaq index overnight.
The Breville Group Ltd (ASX: BRG) share price is pushing higher today after the appliance manufacturer announced an acquisition. According to the release, Breville has completed the acquisition of Seattle-based coffee grinding company Baratza for approximately US$60 million. This comprises US$43 million of cash and US$17 million of shares. These shares will be subject to a three-year trading lock. Management notes this acquisition brings together two of the world’s leading companies in the design and global distribution of coffee products.
Best and worst ASX 200 performers
The best performer on the ASX 200 on Friday is the Janus Henderson Group (ASX: JHG) share price with a 10% gain. This follows reports that activist investor Trian Fund Management has taken a big stake in the company. The worst performer is unsurprisingly the Mesoblast share price. It is down 34% at lunch following its FDA update.
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Xero. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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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