Market Wrap: Aus shares climb on takeover talk

Market Reports


Takeover talk has sent Australian shares 1.04 per cent higher today despite news that Greece had officially defaulted on its $1.7 billion payment to the International Monetary Fund overnight. 
 
Banks and industrials have seen also strong trade as investors decided they had worried enough about Greece for now.  
 
The S&P/ASX 200 index closed 57 points up to finish at 5,516. 
 
The value of trades was $4.6 billion on volume of 746 million shares at the close of trade. The top three stocks by value were BHP Billiton Limited (ASX:BHP), Commonwealth Bank of Australia (ASX:CBA) and Telstra Corporation Limited (ASX:TLS)
 
On the futures market the SPI is 81 points up.
 
Economic news

CoreLogic RP Data reported capital city house prices rose by 9.8 per cent in 2015 financial year just below the 10.1 per cent jump in 2014. Sydney prices surged 16.2 per cent to the end of June, Melbourne was up 10.2 per cent with Adelaide rounding up the top three, up 4.5 per cent.  
 
Company news
 
The biggest story of the day came from Asciano Limited (ASX:AIO) which confirmed speculation it is the subject of a takeover bid. Brookfield Infrastructure Group has issued an proposal of $9.05 per share in cash and scrip in Brookfields listed infrastructure fund. Asciano’s board have agreed to discuss the proposal but say there is no guarantee of a binding offer at this stage. Shares in Asciano are up 16.84 per cent to $7.77.  
 
Takeover talks really spurred the market with news that Tassal Group Limited (ASX:TGR) will buy the De Costi Seafoods Business. The salmon farmer will fork out an up-front payment of $50 million followed by a growth-based earn out component. Tassal Group shares ended 8.11 per cent higher at $3.60.
 
Kathmandu Holdings (ASX:KMD) confirmed an approach from New Zealand retailer Briscoe Group for a 100 per cent takeover of the struggling outdoor clothing specialist. 
 
DrillSearch Energy Limited (ASX:DLS) have released an upbeat performance report with strong margins despite the lower oil prices in the 2015 financial year. 
 
Goodman Group (ASX:GMG) says its industrial fund joint venture with Brickworks will sell a Coles Chilled Distribution Centre in Eastern Creek NSW for $253 million.
 
Stockland (ASX:SGP) has completed on the $75.8 million purchase of a portfolio of eight retirement villages in South Australia. 
 
Best and worst performers

The best performing sector was industrials adding 4.1 per cent to close at 4,713. The only sector in the red today was materials, losing 0.7 per cent to close at 8,670 points.
 
The best performing stock in the S&P/ASX 200 was the afore-mentioned Asciano. Shares in Paladin Energy and Tassal Group also closed higher.
 
The worst performing stock was Ten Network, dropping 5.26 per cent to close at $0.18. Shares in Fortescue and Southern Cross also closed lower. 
 
IPOs

Mitula Group Limited (ASX:MUA) started trading today. The software and services provider listed with an issue price of $0.75, opened at $0.85 and a closed at $0.80.    
 
Commodities

Gold is trading at $US1,174 an ounce. Light crude is $1.14 higher at $US59.47 a barrel. The Australian dollar is buying 77.1 US cents 

Are you a 708 sophisticated investor?

A sophisticated investor is defined under Section 708 of the Corporations Act (net assets of $2.5 million or annual incomes in excess of $250,000).

They are eligible to receive information regarding wholesale investment opportunities that are not available to regular or retail investors.

Please subscribe if you would like to be alerted to these types of opportunities.