ASX 200 down 0.5%: Costa’s acquisition, Afterpay & Zip charge higher

The ASX 200 is back in the red on Wednesday…

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sad man with his hand over his face on news of the ASX share price falling

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At lunch on Wednesday, the S&P/ASX 200 Index (ASX: XJO) is on course to record a disappointing decline. The benchmark index is currently down 0.5% to 7,305.3 points.

Here’s what is happening on the market today:

Costa capital raising and acquisition

The Costa Group Holdings Ltd (ASX: CGC) share price is in a trading halt on Wednesday as it raises $190 million to fund the acquisition of 2PH Farms. Queensland-based 2PH Farms is the largest citrus grower in northern Australia. It has farming operations in Central Queensland, with a main growing location at Emerald and a smaller location at Dimbulah. 2PH is expected to generate ~$29 million in EBITDA-S in calendar year 2021 on a pro forma basis.

Tech shares rise

One area of the share market that is pushing higher today is the tech sector. The likes of Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P) are recording solid gains and helping to drive the S&P/ASX All Technology Index (ASX: XTX) 1.2% higher. This appears to have been driven largely by the Nasdaq index storming to a new record high overnight. Though, these two BNPL providers were also given a boost by Paypal announcing price increases to its BNPL offering.

ResMed upgraded

The ResMed Inc. (ASX: RMD) share price is rising today after Macquarie upgraded the sleep treatment focused medical device company’s shares. Macquarie has put an outperform rating and $34.85 price target on its shares. It believes ResMed can win market share following the recent recall of the Philips DreamStation devices.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Wednesday has been the Zip share price with a 6% gain. This follows improving investor sentiment in the tech sector. The Zimplats Holdings Ltd (ASX: ZIM) share price is the worst performer on the index today with an 8% decline. This is despite there being no news out of the platinum producer.

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Motley Fool contributor 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 has recommended AFTERPAY T FPO and ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO and COSTA GRP FPO. The Motley Fool Australia has recommended ResMed Inc. 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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