Australia Market gains on M&A activities

The Australian share market finished higher for third straight session on Monday, 18 October 2021, boosted by broadly positive cues from Wall Street on Friday, with a takeover frenzy with deals, including poker machine maker Aristocrat Leisure's $3.9 billion takeover of the Playtech and stronger offer for gas producer Senex further underpinned buying sentiments.

At closing bell, the benchmark S&P/ASX200 advanced 19.09 points, or 0.26%, to 7,381.07. The broader All Ordinaries index added 15.50 points, or 0.2%, to 7,689.66.

Aristocrat Leisure stunned with a $3.9 billion takeover of world's largest supplier of online gaming and sports betting software company Playtech to be funded from its own coffers, a direct loan, and an entitlement offer. Aristocrat shares were halted at $45.79 for the capital raising.

Korean steel-maker POSCO returned for a third time with $815 million offer for natural gas producer Senex Energy.

Shares of materials and resources advanced today, partly thanks to surging commodity prices. Zinc rose by 8.2%, while copper and nickel jumped by ~4% after one of the world's largest zinc producers flagged plans to reduce output at a number of its European smelters due to rising power prices. South32 (S32), Nickel Mines (NIC), Oz Minerals (OZL), BHP, Rio Tinto (RIO) and Fortescue Metals (FMG) all finished with gains.

Shares of energy companies advanced after crude oil prices rose to a three-year high on forecasts of a supply crunch. Brent crude was up 1% to $85.68 a barrel. Oil and gas company Senex Energy (SXL) rose by 14.9% after saying it is in takeover talks with South Korean steel maker, POSCO.

Santos shares rose on dismissal of an appeal against its Narrabri Gas Project in northern New South Wales. The oil and gas producer said it Santos now looked forward to getting on with its work in regional NSW. the legal process had pushed the timelines for the project back 12 months.

CURRENCY NEWS: The Australian dollar changed hands at $0.74, largely holding on to gains after last week's climb from below $0.732.

Powered by Capital Market - Live News