ASX 200 flat: ResMed smashes expectations, AMP surges on takeover talks

AMP Limited (ASX:AMP) and ResMed Inc (ASX:RMD) shares are making waves on the ASX 200 on Friday. Here's why…

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At lunch on Friday the S&P/ASX 200 Index (ASX: XJO) has given back its morning gains. The benchmark index is currently flat at 5,960.7 points.

Here's what is happening on the market today:

Worried young male investor watches financial charts on computer screen

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ResMed smashes expectations.

The ResMed Inc (ASX: RMD) share price is surging higher today after smashing expectations in the first quarter. The medical device company reported a 10% increase in revenue to US$751.9 million. This compares to the market consensus estimate of US$709.47 million. Also beating expectations was its earnings per share, which grew 37% to US$1.27. The market consensus was US$1.03 per share. A key driver of ResMed's result was strong demand for ventilators because of the pandemic.

AMP takeover news.

The AMP Limited (ASX: AMP) share price is rocketing higher today after management confirmed that Ares Management has tabled a takeover bid for the embattled wealth manager. No figures have been provided for the indicative and non-binding takeover proposal, but investors clearly appear to believe it will be a compelling offer. Management has warned that talks are at a very preliminary stage and there is no certainty that a transaction will eventuate.

Tech shares tumble.

Despite a strong night of trade on the tech-focused Nasdaq index, Australian tech shares have been tumbling lower today. The S&P/ASX All Technology Index (ASX: XTX) is down 1.3% at the time of writing, with the likes of Appen Ltd (ASX: APX) and Zip Co Ltd (ASX: Z1P) weighing on the index at lunch.

Best and worst ASX 200 performers.

The best performer on the ASX 200 today by some distance is the AMP share price. Its shares are up 21% at the time of writing following the takeover approach. The worst performer has been the Western Areas Ltd (ASX: WSA) share price with a disappointing 18% decline. This morning the nickel producer downgraded its production guidance and increased its costs guidance due to issues at Flying Fox.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended ResMed, Appen, and Zip Co. The Motley Fool Australia owns shares of A2 Milk. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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