At lunch on Thursday, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a strong gain. The benchmark index is currently up 0.8% to 7,240.3 points.
Here's what is happening on the ASX 200 today:
AGL demerger scrapped
The AGL Energy Limited (ASX: AGL) share price is tumbling lower on Monday after the energy giant announced that it is scrapping its demerger. Although the AGL board continues to believe the demerger would have been "the best way forward," it concedes that it was unlikely to secure the required shareholder votes. AGL estimates that it has spent $160 million on the demerger process to date. In response to the news, AGL's chairman and CEO announced their exits.
A2 Milks jumps
The A2 Milk Company Ltd (ASX: A2M) share price is racing higher today. This follows news that its smaller rival Bubs Australia Ltd (ASX: BUB) has signed a deal with the Biden Administration for the supply of 1.5 million tins of infant formula. Investors appear to be hoping that the embattled infant formula company will also strike a similar deal. The US is currently facing major shortages due to the closure of a major manufacturing plant.
Tech shares storm higher
The tech sector has played a key role in driving the ASX 200 higher on Monday. Strong gains from the likes of Block Inc (ASX: SQ2) and Zip Co Ltd (ASX: ZIP) have driven the S&P ASX All Technology index 3.1% higher. Investors were scrambling to buy tech shares after data showed that US inflation is slowing.
Best and worst ASX 200 performers
The best performer on the ASX 200 on Monday has been the A2 Milk share price with a 10% gain amid hopes that the company will get a boost from US infant formula shortages. Going the other way, the Appen Ltd (ASX: APX) share price is the worst performer with a 3% decline. Investors have been selling this struggling artificial intelligence data services company's shares since its takeover approach was withdrawn.
