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FIVE at FIVE AU: ASX drops as Star Entertainment shares plummet

Published 20/02/2024, 04:03 pm
© Reuters.  FIVE at FIVE AU: ASX drops as Star Entertainment shares plummet
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The ASX is down today. The S&P/ASX200 dropped 11.30 points or 0.15% to 7,653.80.

Over the last five days, the index has gained 0.66%, but is virtually unchanged over the last year to date.

The bottom-performing stocks in this index are Strike Energy and The Star Entertainment Group, down 25.86% and 22.32% respectively.

Looking at the sectors, Communication Services was the best performed up 1.50%. Real Estate jumped up 0.64%. Otherwise, it was a mixed bag with Materials and Energy the worst performed, losing 1.18% and 1.03% respectively.

It was better news on the small cap front today, with the S&P/ASX Small Ordinaries up 0.21% to 2,954.50. Over the past five days, it is down 0.36%.

Star shares plummet

Star Entertainment Group saw more than A$300 million wiped from its market valuation following a resumption in trading after the New South Wales casino regulator expressed doubts about the company's cultural reforms being adequate for its continued operation within the state.

The share price plummeted more than 20% on Tuesday, with trades hitting a low of 42 cents. The unexpected move by the Independent Casino Commission to appoint Adam Bell, SC, to conduct a second investigation into the gaming conglomerate has compelled Star to postpone a financial update originally set for Wednesday.

“I’m just not sure the extent to which they’ve addressed the cultural reform that Adam Bell said … was serious and endemic and needed a lot of work,” ICC chief commissioner Phillip Crawford said in an interview with the Financial Review. “We want to see the progress they’ve made around that particular space. That’s really important.”

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