At lunch on Thursday the S&P/ASX 200 Index (ASX: XJO) is running out of steam and threatening to end its winning streak. At the time of writing, the benchmark index is roughly flat at 6,678.1 points.
Here's what is happening on the market today:
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Bega Cheese announces major acquisition.
The Bega Cheese Ltd (ASX: BGA) share price is in a trading halt today whilst it aims to raise a total of $401 million via an underwritten entitlement offer and placement. The proceeds will be used to partly fund the acquisition of Lion Dairy & Drinks for $534 million. Lion Dairy & Drinks is the business behind a wide range of brands such as Dare, Farmers Union, Juice Brothers, Pura, and Yoplait. Management expects the acquisition to be double digit earnings per share accretive in FY 2022.
Virgin Money UK sinks.
The Virgin Money UK CDI (ASX: VUK) share price is sinking lower following the release of its full year results. For the 12 months ended 30 September, the UK-based bank reported a 77% drop in full year underlying pre-tax profit. This decline was driven largely by a sizeable 501 million pound impairment charge in relation to an expected surge in bad loans because of COVID-19. This led to analysts at Macquarie downgrading its shares to a neutral rating this morning. It has a $2.70 price target on its shares.
WiseTech Global reaffirms guidance.
The WiseTech Global Ltd (ASX: WTC) share price is pushing higher on Thursday after it reaffirmed its guidance for FY 2021. The logistics solutions company expects revenue of $470 million to $510 million and EBITDA of $155 million to $180 million. This represents growth of 9% to 19% and 22% to 42%, respectively. However, it is worth noting that the company has warned that the ongoing and longer-term impacts of COVID-19 are still not completely predictable.
Best and worst ASX 200 performers
The best performer on the ASX 200 on Thursday has been the Harvey Norman Holdings Limited (ASX: HVN) share price with a 5.5% gain. This morning Credit Suisse retained its outperform rating and $5.06 price target in response to its trading update yesterday. The worst performer has been the Virgin Money UK with an 8% decline following its full year results release.
