The ASX 200 finished the week down 0.91% following a steep fall on Friday, meaning the index has lost 4% so far in June. Industrial companies, miners and energy producers led the losses, while financials reported a small gain and telcos also ended the week in the green.
Volatility in global markets – as investors continue to fret over Greece’s attempts to talk its way out of defaulting on its debt – saw the ASX 200 lose 1.7% on Friday, undoing gains made earlier in the week.
Shares in law firm Slater & Gordon (ASX:SGH) dropped 19.3% to $5.04, with news that a company it part owns in the UK was being investigated with regards to public statements made about its financial accounts in 2013 and 2014.
Bradken (ASK:BKN) shares also dropped more than 10% on Friday after the mining and construction supplier said it had agreed to accept a $70m investment in order to pay down debt and signalled it was still suffering due to the mining downturn in Australia.
Shares in Bradken have now fallen almost 60% in the past 12 months to $1.52.
Flight Centre (ASX:FLT) shares dropped close to 20% in the week after the travel company downgraded its profit forecast, while Myer (ASX:MYR) shares also fell after the department store said that it had refinanced $600m in debt.
Issues with a system upgrade at TAFE NSW will impact SEEK’s (ASX:SEK) overall FY15 result, the company said this week, sending shares down 15.8% to close the week at $13.87.
Mergers and acquisitions
Bradken confirmed as part of its announcement that it had been approached about apossible merger between Bradken and Sigdo Koppers’ wholly owned subsidiary Magotteaux Group. Meanwhile the billion dollar merger between Amcom (ASX: AMM) and Vocus (ASX:VOC) got the nod of approval from the Federal Court of Australia.
A2 Milk Company also revealed it had received interest from two potential buyers, one of those being confirmed as Freedom Foods Group (ASX:FNP) and labour hire business Skilled Group (ASX:SKE) agreed to a long-anticipated $650m takeover.