ASX 200 flat: Costa crashes & Fisher & Paykel Healthcare tumbles

Costa Group Holdings Ltd (ASX:CGC) and Fisher & Paykel Healthcare Corp Ltd (ASX:FPH) shares are making a splash on the ASX 200 on Thursday…

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At lunch on Thursday, the S&P/ASX 200 Index (ASX: XJO) has failed to follow the lead of US markets and is having a subdued day. The benchmark index is currently flat at 7,092.5 points.

Here’s what is happening on the market today:

Costa crashes

The Costa Group Holdings Ltd (ASX: CGC) share price is crashing lower today following the release of its annual general meeting update. At the meeting, the horticulture company provided investors with an update on its expectations for the first half of FY 2021. Due to weakness in its domestic operations and currency headwinds, Costa’s first half performance is expected to be marginally ahead of the previous comparable period in 2020. This was well short of expectations.

Mixed reaction to Ramsay’s $1.8 billion acquisition

The Ramsay Health Care Limited (ASX: RHC) share price is trading lower on Thursday after announcing plans to acquire Spire Healthcare for approximately 1 billion pounds (A$1,822 million). Spire is an independent hospital group in the United Kingdom with a focus on the private patient market. It is also a leading provider of high-acuity care. Management believes the acquisition will be transformational for Ramsay’s UK business. Credit Suisse responded by retaining its neutral rating and $70.00 price target.

Fisher & Paykel Healthcare results

The Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) share price is sinking following the release of its full year results. The medical device company reported a 56% increase in operating revenue to NZ$1.97 billion and an 82% jump in net profit after tax to NZ$524 million. While this was significantly ahead of the guidance given with its half year results, management’s uncertain FY 2022 outlook appears to have spooked investors.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Thursday has been the EML Payments Ltd (ASX: EML) share price with a 4.5% gain. This is despite there being no news out of the payments company. The worst performer has been the Fisher & Paykel Healthcare share price with a 20% decline following its AGM update.

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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 and recommends EML Payments. The Motley Fool Australia owns shares of and has recommended COSTA GRP FPO. The Motley Fool Australia has recommended EML Payments and Ramsay Health Care Limited. 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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