The Australian share market lifted from a soft open to close 0.3 per cent higher after the release of Australian Bureau of Statistics (ABS) data and amid Merger and Acquisition (M&A) activity. Financial stocks lead the gains and property trusts and consumer staples stayed strong strong. The miners dragged and finished as the worst performing sector.
The S&P/ASX 200 index gained 14 points to end at 4,452. On the futures market the SPI is 21 points higher.
Economic news
Retail sales figures have disappointed while building approval came in better than expected in August, according to the Australian Bureau of Statistics. The ABS reports retail spending increased 0.2 per cent, coming in under the 0.4 per cent gain expected. Residential building approvals increased 6.4 per cent, surpassing the 4.7 per cent rise expected.
Company news Shares in Discovery Metals Limited
(ASX:DML) got a boost after the Africa-focussed copper explorer and producer revealed it’s scored an $830 million takeover bid. Chinese private equity firm Cathay Fortune Corporation has put forward an indicative and non-binding proposal of $1.70 per share to acquire all the shares it does not already own. Shares in Discovery Metals finished flat at $1.46.
Shares in Billabong International Limited
(ASX:BBG) plunged today as reports emerged the surfwear retailer’s suitor, US private equity firm TPG Capital, is considering walking away or lowering its $694 million bid. TPG’s offer of $1.45 per Billabong share remains as the sole bid for the company after private equity firm Bain Capital withdrew its offer last month. Shares in Billabong International plunged 18.25 per cent today to close at $1.07.
Shares in agribusiness Elders Limited
(ASX:ELD) jumped after denying it’s received a formal merger proposal from Ruralco Holdings Limited
(ASX:RHL) and announcing it will gain about $3 million from the sale of its stake in SmartFibre.
Shares in oil and gas developer Drillsearch Energy Limited
(ASX:DLS) pulled back after offering about $118 million for petroleum explorer Acer Energy Limited
(ASX:INP)
Shares in Fisher and Paykel Appliances Holdings Limited (ASX:FPA, NZE:FPA) rose after the home appliances manufacturer’s independent directors rejected a $700 million takeover offer from China’s Haier Group, launched last month.
Shares in Arrium Limited
(ASX:ARI) continued to advance after receiving a $1 billion takeover bid on Monday amid fresh reports the mining and steel company’s major shareholders have backed the board in rejecting the bid.
Best and worst performers
The best performing sector was financials excluding real estate investment trusts adding 58 points to close at 5,305.
The worst performing sector was materials, losing 79 points to close at 9,967 points.
The best performing stock in the S&PASX 200 was Whitehaven Coal Limited
(ASX:WHC), rising 8.63 per cent to close at $3.02. Shares in Linc Energy Limited
(ASX:LNC) and BlueScope Steel Limited
(ASX:BSL) also closed higher.
The worst performing stock was Billabong International Limited
(ASX:BBG), dropping 18.25 per cent to close at $1.07. Shares in GWA International Limited
(ASX:GWA) and Intrepid Mines Limited
(ASX:IAU) also closed lower.
Commodities
Gold is trading at $US1,783 an ounce.
Light crude is $0.01 lower at $US88.15 a barrel.
The Australian dollar
The Australian dollar is buying $1.02.
