ASX 200 up 0.7%: Vocus jumps on takeover update, Afterpay crashes 9%

Afterpay Ltd (ASX:APT) and Vocus Group Ltd (ASX:VOC) shares are making big waves on the ASX 200 on Tuesday. Here’s why…

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At lunch on Tuesday the S&P/ASX 200 Index (ASX: XJO) is on track to record another solid gain. The benchmark index is currently up 0.7% to 6,788 points.

Here’s what is happening on the market today:

Tech shares sink

It has been a very disappointing day of trade for tech shares such as Afterpay Ltd (ASX: APT) and Zip Co Limited (ASX: Z1P). Following another poor night of trade on the tech-heavy Nasdaq index, local tech shares have been sold off on Tuesday. So much so, the S&P/ASX All Technology Index (ASX: XTX) is down a sizeable 3% at the time of writing. Rising bond yields are hitting investor sentiment in the sector.

Vocus takeover offer accepted

The Vocus Group Ltd (ASX: VOC) share price is storming higher today after it accepted a takeover offer. According to the release, the specialist fibre and network solutions provider has entered into a Scheme Implementation Deed with a consortium owned by Macquarie Infrastructure and Real Assets (MIRA) and Aware Super. The consortium has tabled a $5.50 per share offer, which the Vocus board is recommending shareholders accept. This is of course in the absence of a superior offer and subject to the independent expert’s report.

Gold miners tumble

Gold miners including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) are under pressure today after the spot gold price dropped again. According to CNBC, the spot gold price fell 1.1% to US$1,679.20 an ounce during overnight trade. This leaves the precious metal trading at a nine-month low. Rising bond yields and a stronger US dollar have been weighing on gold. The S&P/ASX All Ords Gold index is down 1.5% at lunch.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Tuesday has been the Vocus share price with a gain of 8.5%. This follows the release of its takeover update this morning. The worst performer has been the Afterpay share price with a 9% decline. The payments company’s shares have been hit very hard by the tech selloff.

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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 AFTERPAY T FPO and ZIPCOLTD FPO. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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