ASX 200 down 0.1%: CBA's COVID-19 loan deferrals improve, Link receives takeover approach

Commonwealth Bank of Australia (ASX:CBA) and Link Administration Holdings Ltd (ASX:LNK) shares are making a splash on the ASX 200 on Monday…

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At lunch on Monday the S&P/ASX 200 Index (ASX: XJO) has just dropped into negative territory. The benchmark index is currently down 0.1% to 6,097.5 points.

Here's what has been happening on the market today:

CBA COVID-19 loan deferrals update.

The Commonwealth Bank of Australia (ASX: CBA) share price is pushing higher on Monday after the release of an update on its COVID-19 loan deferrals. According to the release, the banking giant has experienced another reduction in the number of loans on deferral. At the end of September, the total number of loan repayment deferrals stood at 129,000. This is down from 174,000 in August and 210,000 in June.

Link receives takeover approach.

The Link Administration Holdings Ltd (ASX: LNK) share price is rocketing higher on Monday after receiving a takeover approach. The administration services provider has received a non-binding and indicative offer of $5.20 cash per share from a consortium comprising Pacific Equity Partners, Carlyle Group, and their affiliates. This represents a 30% premium to its last close price. Major shareholder Perpetual Limited (ASX: PPT) intends to vote in favour of the proposal, subject to no superior proposal being tabled.

Gold miners charge higher.

The likes of Evolution Mining Ltd (ASX: EVN) and Newcrest Mining Limited (ASX: NCM) shares are racing higher today with the rest of the gold miners. A strong first quarter update from Evolution, a broker upgrade for Newcrest, and a solid rise in the gold price has lifted their shares. At the time of writing, the S&P/ASX All Ordinaries Gold index is up a sizeable 1.8%.

Best and worst ASX 200 performers.

The best performer on the ASX 200 on Monday has been the Link share price by some distance with its 25% gain. This follows the receipt of its takeover approach this morning. The worst performer has been the Orica Ltd (ASX: ORI) share price with a 3.5% decline. This morning it revealed that its FY 2020 underlying earnings before interest and tax (EBIT) would be slightly above $600 million. This compares to EBIT of $665 million in FY 2019.

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 Link Administration Holdings Ltd. The Motley Fool Australia has recommended Link Administration Holdings Ltd. 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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