Link share

The S&P/ASX 200 (XJO) jumps, Link & EML Payments (EML) in brief

The S&P/ASX 200 (INDEXASX: XJO) and All Ordinary (ASX:XAO) started Tuesday with a mixed day after a soft day for ASX traders on Monday. The S&P/ASX 200 was up 0.3% 6,623 by midday, with EML Payments Ltd (ASX: EML) and Link Administration Holdings Ltd (ASX: LNK) to the point.

ASX 200 price vs. EML stock price

The chart above compares the EML stock price to the popular iShares S&P/ASX 200 ETF (ASX:STW). You can see all ETFs that track Australian stocks on this page.

ASX 200 tech stocks hit

Materials and technology stocks continue to be hit by stagflation fears. Stagflation means an economy that weakens at the same time that inflation remains high. ASX tech stocks and materials fell more than 2.5% on Tuesday.

Sonic Health Care (ASX:SHL) and Healius (ASX:HLS) stocks were among the leaders on Tuesday, with CSL Limited (ASX:CSL) also seeing buyers attracted by the sectors defensive earnings profile.

Focus on EML stock price

The EML The stock price fell another 24% on Tuesday and traded flat around noon on Wednesday. As Rask Media reported on Tuesday, EML is making headlines for all the wrong reasons in 2022.

Long Term EML Payments CEO Tom Cregan resigned this week, with Emma Shand to pick up the slack after earlier stints at the Nasdaq. This comes as EML embarks on an aggressive but battered global expansion strategy.

ASX Ltd (ASX:ASX), the operator of the stock exchange, has also lost its chief financial officer, with Gillian Larkin join the CEO Dominique Stevens at the door in August following a different period for the exchange operator.

The link declines the offer

Link shares managed to pull off a small gain on Tuesday, ending at $4.03, but well below the improved takeover bid price of $4.57 from Dye and Durham. It came after Link’s board reviewed the improved offer and suggested it was unable to recommend the acquisition given recent movements in the share value. PEXA (ASX:PXA).

It was also bad news for Costa Group (ASX:CGC), which ended Tuesday down 8% after leaving a trade stop on its citrus crop. The management of the Costa Group has warned of quality problems in its harvest due to the impact of weather events which will lead to lower production than usual.

“The 2PH business is operating mainly in line with pre-acquisition expectations with volumes above forecast; however, some quality issues have been encountered due to weather events over the past few weeks” Costa explained.

Will inflation subside?

Finally, brokerage Garden believe that inflation will moderate in the United States over the next few months and in Australia 3-6 months later, offering hope to investors worried about a surge in inflation. Elsewhere, a massive week is shaping up for economic data with Chinese results to be filtered with an impression of American inflation which could change the course of central bank policy.

The ASX 200 (XJO) is down about 13% in 2022, but the S&P/ASX 200 Net Total Return (INDEXASX:XNT), which includes ASX stock dividend earnings, is only down 9.3%. See what stocks are in the ASX 200.