The Australian share market has maintained its early gains closing 0.36 per cent up in steady afternoon trade. The bourse was taken higher by banks and news of an unsolicited takeover offer for SAI Global.
The S&P/ASX 200 index closed 20 points up to finish at 5,513.
The value of trades was $2.8 billion on volume of 531 million shares at the close of trade. The top three stocks by value were BHP Billiton Limited
(ASX:BHP), Westpac Banking Corporation
(ASX:WBC) and Telstra Corporation Limited
(ASX:TLS)
On the futures market the SPI is 9 points up.
Company news
SAI Global Limited
(ASX:SAI) has announced its chief has been dropped while also revealing it is considering a takeover offer. Pacific Equity Partners has launched an unsolicited, conditional takeover bid for the company which values it at about $1.1 billion.
The standards and risk management group says it has not formed a view on the proposal but is open to engaging with its suitor to investigate the possibility. SAI Global has also announced it will immediately terminate the employment of current chief executive Stephen Porges. The decision was made due to fundamental differences of opinion between Mr Porges and the board in relation to the company’s business improvement objectives.
Non-executive, independent chairman, Andrew Dutton had been appointed executive chairman, effective immediately, until a suitable replacement is appointed. SAI Global closed 17.06 per cent higher at $5.01.
Telecom and utilities service provider Service Stream Limited
(ASX:SSM) has appointed a new managing director. Leigh Mackender, previously the head of the Energy & Water division will take the top job after the resignation of Terry Sinclair. Mr Sinclair relinquished the role after strategic differences with the Board. Service Stream recently renewed a $70 million contract with NBN Co and is well placed financially to take on a period of high growth but also warned that some late orders on major programs would see a lower than expected full year result. The company said it expected earnings in the region of $17 million.
Shares in Service Stream are trading 9.52 per cent lower at $0.19.
Shares in resource sector services company Sedgman Limited
(ASX:SDM) took a beating today after it cut guidance on a slowdown in the mining services sector. The company now expects to post a net loss of between $5 million to $7 million in fiscal 2014, down from an earlier forecast of a profit between $3 million to $6 million.
Engineering and services company Logicamms Limited
(ASX:LCM) says has been awarded more than $15 million worth of contracts since it last updated the market 2 weeks ago.
Challenger Diversified Property Group
(ASX:CDI) has inked a $42.5 million deal to sell the Taylors House building in the Sydney suburb of Waterloo.
And Oil Search Limited
(ASX:OSH) has welcomed the first shipment of liquefied natural gas (LNG) from the ExxonMobil operated $US19 billion PNG LNG project.
Best and worst performers
The best performing sector was energy adding 103 points to close at 14,491 .The worst performing sector was telco services , losing 14 points to close at 1,859 points.
The best performing stock in the S&P/ASX 200 was SAI Global , rising 17.06 per cent to close at $5.01. Shares in Lynas Corp rose and Sundance Energy closed higher on news it has sold its DJ Basin assets for a handy $116 million US.
The worst performing stock was Regis Resources , dropping 7.31 per cent to close at $1.58. Shares in Myer and Challenger also closed lower.
Commodities
Gold is buying $US1,293 an ounce. Light crude is $0.61 up at $US104.35 a barrel. The Australian dollar is buying 92.37 US cents
