ASX 200 up 0.8%: Metcash update, tech shares rebound, PointsBet acquisition

Metcash Limited (ASX:MTS) and PointsBet Holdings Ltd (ASX:PBH) shares are making waves on the ASX 200 on Tuesday…

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At lunch on Tuesday the S&P/ASX 200 Index (ASX: XJO) is on course to record a solid gain. The benchmark index is currently up 0.8% to 6,825.3 points.

Here's what is happening on the market on Tuesday:

Metcash strategy update

The Metcash Limited (ASX: MTS) share price is trading lower today following the release of its strategy update. In addition to its strategy update, the wholesale distributor revealed strong sales momentum for all business segments so far in the second half of 2021. Supermarket, hardware and liquor sales have all experienced double digit growth compared to the prior corresponding period. Another positive is that Metcash has increased its target dividend payout ratio from 60% to 70% of underlying net profit after tax.

Tech shares rebounding

It has been a better day for tech shares such as Appen Ltd (ASX: APX) and Xero Limited (ASX: XRO) on Tuesday. Thanks to the easing of bond yields in the United States, investors have been piling back into the sector again. This led to the tech-heavy Nasdaq index rising over 1% during overnight trade. On the local market, the S&P/ASX All Technology Index (ASX: XTX) has followed its lead and is up 1.2% at the time of writing.

PointsBet announces acquisition

The PointsBet Holdings Ltd (ASX: PBH) share price is pushing higher today after announcing the acquisition of Banach Technology for US$43 million. Banach Technology is a Dublin-based provider of proprietary risk management platforms and quantitative driven trading models. These platforms and models support complex pre-game and in-play betting products across numerous sports, including the four major American sports and international soccer. In-play wagering is expected to represent ~75% of all sports wagering activity in the United States within three years.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Tuesday has been the ARB Corporation Limited (ASX: ARB) share price with a 4% gain. This is despite there being no news out of the 4×4 accessories company. The worst performer has been the Viva Energy Group Ltd (ASX: VEA) share price with a decline of 3% on no news.

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 Appen Ltd and Pointsbet Holdings Ltd. The Motley Fool Australia owns shares of Xero. The Motley Fool Australia has recommended ARB Limited and Pointsbet Holdings Ltd. 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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