Market Close: Healthcare drags ASX200 on CSL's heart breaking drug trial results

ASX News Market Summary
12 Feb 2024 17:03 (AEDT)

The ASX200 closed the day down about .4 of a per cent to 7614.9 points.

The healthcare sector was the worst performing, closing down about 3.2 per cent, dragged by biotech giant CSL (ASX:CSL) after a heart drug candidate failed to meet its Phase 3 trial outcomes.

In The Green

It was a strong performance by JB Hi-Fi (ASX:JBH) which lifted 7 per cent despite a drop in its first-half profits.

The tech retailer’s net profit slumped nearly 20 per cent on the previous corresponding period, to $264.3 million.

JB Hi-Fi was still ahead of expectations in reporting first-half sales of $5.16 billion – down 2.2 per cent. The interim dividend was also down nearly 20 per cent.

Investors are likely banking on interest rate cuts and tax cuts auguring well for the company in the months ahead.

JBH closed at $60.58.

Dreadnought Resources (ASX:DRE) added 5.5 per cent after announcing a boundary expansion of its ‘camp scale’ gold prospect at the Star of Mangaroon project in Western Australia.

The prospect’s expansion has exceeded initial expectations, from a presumed 10 km long shear zone to a 12km by 5km zone of robust gold-in-soil and pathfinder anomalies.

Further test results are due later this month and the company will be on-site in April to conduct mapping.

DRE closed at 1.9 cents.

And Infinity Lithium (ASX:INF) was up more than 5.3 per cent after lodging its mining application, called the Exploitation Concession Application for its San Jose lithium project in Spain.

The company’s seeking the rights rights to mine lithium at San Jose and for on-site lithium chemical conversion operations.

The company will work with the Regional Government of Extremadura throughout the process.

INF closed at 7.9 cents.

In The Red

As mentioned earlier, $140 billion market cap company CSL (ASX:CSL)had a tough day on market. It shed nearly 5 per cent after posting a disappointing progress update for its long-awaited CSL112 product.

The Phase 3 trial of the drug candidate did not meet its efficacy endpoint of showing a reduction in recurrent heart events in the 90 days that follow a heart attack.

As a result, there are no plans for a near-term regulatory filing.

CSL closed at $290.24.

Skycity Entertainment Group (ASX:SKC) lost about 2.8 per cent – on news the New Zealand Department of Internal Affairs plans to file civil penalty proceedings in the High Court against a subsidiary of the casino group.

It’s claiming non-compliance with the Anti-Money Laundering and Countering Financing of Terrorism Act against SkyCity Management which holds licences for casinos in Auckland, Hamilton and Queenstown.

If the High Court accepts the claim, it could cost the group up to A$7.52 million.

SKC closed at $1.91.

And semiconductor developer BluGlass (ASX:BLG) lost nearly 24 per cent after raising $4.3 million through a Placement priced at 3.7 cents.

That represents a 19.6 per cent discount. BluGlass is also launching a Share Purchase Plan to raise another $9 million.

Funds will be used to scale and speed up production of the company’s visible lasers to fulfil new and existing contracts to the industrial, defense, bio-medical and scientific market.

BLG shares fell to 3.5 cents – that’s below the 3.7 cent raise price.

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