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FIVE at FIVE AU: ASX down slightly; Guzman y Gomez jumps on listing

Published 20/06/2024, 04:03 pm
© Reuters FIVE at FIVE AU: ASX down slightly; Guzman y Gomez jumps on listing
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After spending most of the day trading sideways, the ASX 200 closed slightly lower, down 0.12%, with the Healthcare and Tech sectors suffering.

Real Estate, Financial and Consumer Discretionary stocks held up, as did Mexican-inspired food chain Guzman y Gomez (GYG).

GYG has been embraced by investors with its shares soaring to more than $30 on its ASX debut today, up from its $22 per share listing price. The success of the IPO has stoked hopes across the market that the $2.2 billion company’s float will bring life back to the largely dormant domestic IPO market.

Guzman y Gomez is the largest company to list on the ASX since late 2021. Previously that spot was held by mining and infrastructure services company Tasmea, which raised just $59 million in its IPO earlier this year.

Data out of New Zealand reveals the country’s economy grew by 0.2% in the first quarter -pulling itself out of its second recession in just over a year. But that wasn’t much of a great result, said ANZ New Zealand senior economist Miles Workman, as the economy continues to shrink in per capita terms, as is the case in Australia.

“Today's release doesn't change the fact that economic momentum is anaemic, particularly from domestic demand and per capita perspectives," he said.

Locally, business insolvencies hit record high last month as the industry warns worse is yet to come.

Insolvency experts expect a continued high level of company failures until the Reserve Bank announces interest rate relief.

Behind the failures are deteriorating economic conditions combined with poor consumer spending and stubborn inflationary pressures, including higher operating expenses, felt by many companies.

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