ASX 200 falls, Macquarie jumps, Aussie Broadband climbs

The ASX 200 dropped today, though Macquarie was a top performer.

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The S&P/ASX 200 Index (ASX: XJO) fell by 0.25% today to 7,512 points.

Here are some of the highlights from the ASX:

Macquarie Group Ltd (ASX: MQG)

The Macquarie share price was a highlight in the ASX 200 today after giving an update about its FY22 operating performance. It rose by almost 5%.

Macquarie said that it expects the first half of FY22 to be slightly down on the second half of FY21. However, that actually represents a large increase year on year.

The investment bank’s asset management division is expecting its base fees to be broadly in line. Waddell & Reed is not expected to add much to net profit in FY22 because of integration and one-off costs.

In Macquarie Capital, it’s expecting improved transaction activity to continue through FY22. Management are also seeing an improved outlook for investment realisations and increased balance sheet deployment, with investment-related income expected to be significantly up on FY21.

The banking and financial services division is experiencing ongoing momentum in its loan portfolio and platform volumes. But there are still competitive dynamics that are driving margin pressures. Macquarie is still monitoring provisioning due to the COVID-19 environment. The bank is also expecting higher expenses to support volume growth, technology investment and increased regulatory investment.

Macquarie’s commodities and global markets division is expecting that commodities income is expected to be down after a strong FY21, though volatility could create opportunities. The ASX 200 investment bank said that favourable market conditions are contributing to a stronger FY22 commodities and global markets result than anticipated.

Aussie Broadband Ltd (ASX: ABB)

The Aussie Broadband share price rose 3.7% today after coming out of its trading halt for a capital raising.

The institutional placement is raising $114 million and the share purchase plan for regular investors was capped at $10 million.

Aussie Broadband said that it has a strong and developing pipeline of acquisition opportunities. It has identified several potential options that would add to earnings and it intends to pursue these after completing its capital raising.

It’s in preliminary discussions with a range of targets of various sizes to acquire telecommunication businesses in the residential, business and enterprise segments. These acquisitions could add key product to capabilities. Aussie Broadband is expecting to make at least one acquisition in the first half of FY22.

The majority of the capital raised will be used for acquisitions.

This capital raising is being conducted at a price of $4 per new share, representing a 13.6% discount to the last closing price.

Synlait Milk Ltd (ASX: SM1)

The Synlait share price started the day up 2%, but finished 1% lower after announcing potential job cuts.

The dairy business said it has commenced a consultation process to improve its organisational restructure.

This proposed structure would see Synlait’s overall headcount reduce by approximately 15% and generate potential annual savings of approximately $10 million to $12 million.

Synlait CEO John Penno said:

Synlait has been through a lot over the last 12 months. This means some areas are now over resourced, and some areas are under resourced. We need to review and reset the structure of our business to match our current goals to be successful.

The business is currently discussing the proposed changes with impacted team members and union representatives. This process will take place over the next two weeks.

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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. owns shares of and has recommended Aussie Broadband Limited. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool Australia has recommended Aussie Broadband 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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