ASX 200 up 0.55%: Challenger jumps, Nanosonics sinks

The ASX 200 is back on form on Wednesday…

James Mickleboro

Author Bio James Mickleboro is an investment writer and analyst who has worked with The Motley Fool Australia for 10 years, covering ASX shares, market news, broker research, dividends, growth stocks, and long-term investing ideas. Over that time, James has written extensively about Australian equities and developed a particular focus on helping everyday investors understand the stories behind share price moves, company announcements, broker views, and broader market trends. His best investment recommendation was identifying Afterpay while it was still a small-cap growth share, before its rise into one of Australia’s biggest technology success stories. His worst investment lesson came from CSL Ltd (ASX: CSL), where he was burnt by believing management could turn the business around sooner than the market ultimately allowed. Areas of Expertise ASX shares Growth and dividend investing Broker research Interpreting company announcements Market news Portfolio strategy Long-term wealth creation Education Bachelor of Politics, Philosophy and Economics. CFA Institute Social Media LinkedIn Favorite Investment Quote "It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price." — Warren Buffett

Published July 7, 2021 12:01 pm AEST

At lunch on Wednesday, the S&P/ASX 200 Index (ASX: XJO) has overcome a soft start and is charging higher. The benchmark index is currently up 0.55% to 7,302 points.

Here's what is happening on the market today:

A share market investment manager monitors share price movements on his mobile phone and laptop — Image source: Getty Images

Challenger shares jump on investment news

The Challenger Ltd (ASX: CGF) share price is racing higher today after announcing a new major shareholder. According to the release, leading US-based retirement services company Athene has agreed to acquire a 15% minority interest in Challenger from Caledonia (Private) Investments. Athene paid $6.00 per share, which represents a premium of 9.7% to Challenger's last close price. It sees attractive long-term opportunities in partnering with and supporting Challenger's continued growth.

Nanosonics shares sink on broker downgrade

The Nanosonics Ltd (ASX: NAN) share price is sinking on Wednesday after being the subject of a bearish broker note out of Goldman Sachs. According to the note, the broker has downgraded the infection prevention company's shares to a sell rating and cut the price target on them to $4.93. Goldman made the move after reducing its earnings estimates on the belief that the growth recovery may be shallower than its previous expectations. It also warned that there could be competitive risks from new technologies.

Tech shares storm higher

A number of tech shares are recording strong gains on Wednesday following a positive night of trade on the tech-focused Nasdaq index. The likes of Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P) are trading notably higher, helping to drive the S&P/ASX All Technology Index (ASX: XTX) up a sizeable 2.3% at lunch.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Wednesday has been the Challenger share price with a 10% gain. This follows news that Athene has acquired a 15% stake in the annuities company. The worst performer has been the Nanosonics share price with a 6% decline following its broker downgrade. After which, the next worst performer is the Oil Search Ltd (ASX: OSH) share price with a decline of over 3%. This follows a sharp pullback in oil prices overnight.

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