ASX Wrap: Gold M&A and Retail Buzz Drive ASX Moves on December 2, 2024

Key Highlights:

• Gold M&A Frenzy: De Grey Mining (ASX: DEG) skyrockets 27.8% on Northern Star’s $5B takeover deal.
• Retail Momentum: Black Friday sales drive gains for Myer, Cettire, and Beacon Lighting.
• Sector Winners: Information Technology (+0.91%) and Consumer Discretionary (+0.87%) lead the market.

Gold Takes Center Stage with De Grey Mining’s Mega Deal

It was a golden day on the ASX, quite literally. De Grey Mining (ASX: DEG) became the standout stock as its shares surged 27.8% following Northern Star Resources’ (ASX: NST) announcement of a $5 billion takeover deal. This move is set to create a gold powerhouse, with De Grey shareholders receiving 0.119 Northern Star shares for each De Grey share, valuing them at $2.08—a 37.1% premium to the last close.

Interestingly, this merger is not just a numbers game. It cements Northern Star’s position as one of the world’s largest gold miners. But the market had mixed feelings—while De Grey soared, Northern Star fell 5.9%, reflecting typical acquisition jitters.

Gold Road Rides the Wave

As a 17.85% shareholder in De Grey Mining, Gold Road Resources (ASX: GOR) also benefited from the takeover announcement, jumping 12.6%. This surge highlights how strategic stakes in booming companies can pay off handsomely for investors.

Retailers Cash In on Black Friday Sales

The retail sector shone bright, buoyed by positive Black Friday sales data.

• Myer (ASX: MYR): Soared 10.4%, as renewed consumer spending provided a boost.
• Cettire (ASX: CTT): Climbed 3.7%, riding on its strong online retail presence.
• Beacon Lighting (ASX: BLX): Rose 3.1%, reflecting seasonal demand for home improvement products.

With consumer sentiment on the rise, these gains underscore the importance of strong seasonal trends for retail stocks.

Select Harvests Bounces Back

Select Harvests (ASX: SHV) staged a recovery, climbing 9.6% after recent broker upgrades. Following last week’s disappointing earnings, which led to a 5.4% dip, analysts at UBS and Ord Minnett pointed to future growth potential, helping the stock regain investor confidence.

Star Entertainment Eyes a Fresh Start

Star Entertainment Group (ASX: SGR) gained 7.7% as new CEO Steve McCann received the regulatory green light to assume his role. Investors appear optimistic about the casino operator’s fresh leadership, signaling hope for a turnaround in its troubled operations.

Market Overview: A Balanced Day

The S&P/ASX 200 added 0.14%, closing at 8,447.9, supported by gains in Information Technology (+0.91%) and Consumer Discretionary (+0.87%).

While gold stocks like Northern Star dragged the Gold Index down 1.55%, other sectors helped maintain market equilibrium:

• Materials (+0.19%): Driven by strong performances in select mining stocks.
• Industrials (+0.12%): Steady gains reflected overall economic resilience.

Top Gainers and Losers

Biggest Movers:

• Gainers: De Grey Mining (+27.8%), Myer (+10.4%), Gold Road Resources (+12.6%).
• Losers: GQG Partners (-11.9%) after a UBS downgrade, and Vulcan Energy (-6.6%) amid battery metal market challenges.

Investor Takeaways

• Gold Stocks: M&A activity underscores the growth potential of Australia’s gold mining sector.
• Retail Strength: Positive consumer sentiment is creating opportunities in discretionary stocks.
• Sector Watch: IT and materials sectors offer resilience amid global uncertainties.

A Day of Contrasts and Opportunities

December kicked off with a mix of excitement and caution on the ASX. From billion-dollar gold deals to Black Friday retail rallies, the day showcased the diverse drivers shaping the market. As the year nears its close, investor attention is likely to remain on M&A activity, retail performance, and sectoral trends.

For now, the ASX continues to offer opportunities for those keeping a sharp eye on the movers and shakers.