Panoramic Resources (ASX:PAN) advises shareholders to reject bid: Aus shares close 0.3% higher

Market Reports

by Ortenzia Borre

The Australian share market closed higher this afternoon with Beach Energy leading the way. McMillan Shakespeare was the worst performer of the day after the company released its trading performance update saying the challenging market conditions were likely to persist. The A2 Milk Company also fell upon news its CEO had resigned stating the travel and commitments required were too difficult to manage. As for the sectors Energy was the best performer with Health Care coming in last.

At the closing bell the S&P/ASX 200 index closed 23 points up or 0.3 per cent higher to finish at 6,730.

Futures market

Dow futures are suggesting a fall of 30 points.
S&P 500 futures are eyeing a fall of 6 points.
The Nasdaq futures are eyeing a fall of 16 point.
The ASX200 futures are eyeing a lift of 34 points tomorrow morning. 

Broker moves

Citi has rated Scentre Group (ASX:SCG) as a Sell. Scentre Group announced the acquisition of 50% of Garden City in Perth for $570m and the broker understands the expansion of Westfield Stirling, also in Perth, is deferred and the buyback will continue.The positive aspects, in the broker's view, include the acquisition of an interest in a very high-quality asset and marginal accretion in 2020, as well as increased likelihood of some project income. The negatives include a reduction in maximum project income potential as well as an increase in gearing and the deferral of Stirling.

Company news

Panoramic Resources (ASX:PAN) has strongly advised shareholders to reject Independence Group’s bid. The company released a statement outlining that Directors were unanimously of the view that the offer should not be accepted, saying it is opportunistically timed, which could deprive Panoramic shareholders of future potential value. Panoramic’s largest shareholder, Zeta Resources, also stated that it does not intend to accept the offer in its current form and that it’s highly conditional and with no certainty it will proceed. Earlier last month, news of a takeover bid saw Panoramic shares surge almost 42%. Shares in Panoramic Resources (ASX:PAN) closed 0.4 per cent lower at 35 cents.

Looking at some more headlines:

The A2 Milk Company’s (ASX:A2M) CEO Jayne Hrdlicka has resigned.

Prime Media Group (ASX:PRT) will pay a special dividend to shareholders if they back a merger with Seven West Media.

Worley (ASX:WOR) enters a joint venture with The Atomic Energy Development Agency of the Republic of Uzbekistan

Ioneer (ASX:INR) has signed a non-binding Letter of Intent with Shell Canada Energy to buy sulphur.

Best and worst performers of the day

The best performing sector was Energy adding 1.6 per cent while the worst performing sector was Healthcare, shedding 0.8 per cent.

The best performing stock in the S&P/ASX 200 was Beach Energy (ASX:BPT), rising 5.2 per cent to close at $2.62. Shares in Southern Cross Media (ASX:SXL) and South32 (ASX:S32) followed higher.

The worst performing stock in the S&P/ASX 200 was McMillan Shakespeare (ASX:WHC), dropping 7.5 per cent to close at $13.28. Shares in Estia Health (ASX:EHE) and Viva Energy (ASX:VEA) followed lower.

Asian markets
Japan’s Nikkei has added 0.4 per cent, Hong Kong’s Hang Seng is flat and the Shanghai Composite is eyeing a fall of 0.1 per cent.

Commodities and the dollar

Gold is trading at US$1,461 an ounce. 
Iron ore price is higher at US$89.06.
Iron ore futures are pointing to a lift of 5 per cent.
Light crude is 77 cents higher at US$59.20 a barrel.
One Australian dollar is buying 68.31 US cents.

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