At lunch on Tuesday, the S&P/ASX 200 Index (ASX: XJO) is following the lead of Wall Street and tumbling lower. The benchmark index is currently down 0.9% to 7,106.2 points.
Here's what is happening on the market today:
Boral rejects Seven's takeover offer
The Boral Limited (ASX: BLD) share price is trading slightly higher today after rejecting a takeover approach by Seven Group Holdings Ltd (ASX: SVH). Seven, which currently owns 23.18% of Boral, has made a $6.501 cash per share off-market for all of the shares it does not own. The building materials company believes the offer is opportunistic, undervalues it and unanimously recommends that shareholders reject the offer.
Tech shares tumble
It has been a disappointing day of trade for many Australian tech shares such as Afterpay Ltd (ASX: APT) and TechnologyOne Ltd (ASX: TNE). They have taken a tumble on Tuesday after their US counterparts were sold off on the Nasdaq index during overnight trade. The Nasdaq index ended the session with a 2.55% decline. At the time of writing, the S&P/ASX All Technology Index (ASX: XTX) is down 2.35%.
A2 Milk shares continue to sink
Investors have continued to sell A2 Milk Company Ltd (ASX: A2M) shares on Tuesday following its fourth guidance downgrade yesterday. A number of brokers have responded very negatively to the downgrade. One of those is Credit Suisse, which has retained its underperform rating and cut its price target to $5.00. Macquarie Group Ltd (ASX: MQG) is also bearish on a2 Milk. It downgraded its shares to an underperform rating and cut the price target on them to $5.60.
Best and worst ASX 200 performers
The best performer on the ASX 200 on Tuesday has been the Boral share price with a modest 1.5% gain. This follows its takeover approach this morning. The worst performer has been the PointsBet Holdings Ltd (ASX: PBH) share price with a 7% decline. This may be due to a combination of profit taking and weakness in the tech sector today.
