Daily Brief Australia: Sigma Healthcare, Ainsworth Game Technology, Iron Ore and more

In today’s briefing:

Sigma Healthcare (SIG AU): Next Round of Passive Buying Around the Corner
Novomatic (Finally) Makes A Move On Ainsworth Game Technology (AGI AU)
Iron Ore Tracker (28-Apr-2025): Iron Ore Within The Band, China Lending Data To The Rescue

Sigma Healthcare (SIG AU): Next Round of Passive Buying Around the Corner

There was big passive buying in Sigma Healthcare (SIG AU) in March from S&P/ASX trackers following the completion of the merger with Chemist Warehouse Group.
Sigma Healthcare (SIG AU) should be added to a global index in May and those passive trackers will have a lot of stock to buy.
While there will be positioning in the stock, it appears lighter than the estimated passive buying. Shorts are being covered and that could provide a boost.

Ainsworth Game Technology (AGI AU), an Aussie gaming supplier, has entered into a Scheme Implementation Deed with Austria’s Novomatic, Ainsworth’s largest shareholder (52.9%). A from Offer has been long rumoured.
Novomatic is offering A$1.008/share (best & final), a 35% premium to last close. The Offer does NOT require FIRB signing off. The Offer has the unanimous backing of both boards.
Expect shareholder pushback. The Offer consideration is 64% below what Novomatic paid for its controlling stake in 2016.

Iron ore prices experienced a modest WoW increase of 0.2%, reflecting easing trade tensions as the US considers reducing some of the stringent tariffs previously imposed.
China’s Total Social Financing (TSF) increased by 22% YoY, reaching 5.89 trillion yuan, surpassing the expected 4.8 trillion yuan and boosting optimism for preemptive stimulus measures.
China’s March steel production rose 5% YoY to 92.8 million tons, underscoring its vital role in the market, contributing 56% to total global production.

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