ASX 200 rises, Nuix jumps, REA buys stake of Simpology

The ASX 200 went up again today, extending its strong run.

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The S&P/ASX 200 Index (ASX: XJO) went up by 0.9% today to 7,385 points.

Here are some of the highlights from the ASX:

REA Group Limited (ASX: REA)

The REA Group share price went up 1% today after announcing an acquisition.

REA Group is buying 34% of Simpology. This is a business that aims to increase the efficiency of the mortgage application process. It provides mortgage application and e-lodgement solutions to lending and broker partners across Australia and New Zealand. Simpology’s products enable brokers to seamlessly lodge home-loan applications directly into lenders’ back-end systems. It is integrated in over 30 lenders and over 12,000 brokers.

In addition to the ASX 200 company’s March announcement on the proposed acquisition of Mortgage Choice Limited (ASX: MOC), this investment’s purpose is to further accelerate REA Group’s financial services strategy. It will provide consumers with greater choice and simplicity when navigating their home loan options. It will also deliver productivity improvements to REA’s broker network through higher quality loan submissions, resulting in less re-work, faster loan approval times and streamlined business operations.

REA Group CEO Owen Wilson said:

REA’s investment in Simpology reinforces our commitment to delivering the best end-to-end mortgage application solution for consumers, our brokers and their clients.

Nuix Ltd (ASX: NXL)

The Nuix share price rose around 4% today in response to management news.

Nuix announced that CEO Rod Vawdrey has given notice to retire from the company.

Mr Vawdrey will continue in his role while an international search by the executive recruitment outfit Russell Reynolds conducts the search for the next CEO.

Nuix Chair Jeff Bleich said:

Rod’s decision reflects his deep commitment to Nuix and love for the company. Rod has agreed to remain at least through the announcement of end of year results, and throughout the process required to find the right replacement to ensure the smoothest possible transition.

Nuix is a great company with world-leading technology, an extraordinary portfolio of clients, and an incredibly passionate and committed team of employees. We are confident that the pool of candidates will be a deep one and the board is very focused on attracting the right individual to take on the role.

Bank of Queensland Limited (ASX: BOQ)

The BOQ share price went up more than 1% in response to the bank’s loan provision update.

BOQ announced that its quarterly APRA Basel III Pillar 3 report relating to the period ending 31 May 2021 is expected to include a decrease in the collective provision of $75 million.

The lower collective provision from the ASX 200 bank is due primarily to the improved economic outlook, according to BOQ. There is a further reduction from improvements in data quality relating to collateral.

George Frazis, the BOQ managing director and CEO, said:

Today, Australia is experiencing strengthening business and consumer confidence driving our economic recovery, supported by strong housing growth, lower unemployment rates and increasing business investment.

The reduction in the collective provision during the quarter reflects this improvement in the current economic environment. We continue to prudently manage our provisions to ensure we are well covered for any potential lifetime losses arising from COVID-19.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Nuix Pty Ltd. The Motley Fool Australia has recommended Nuix Pty Ltd and REA Group 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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