The local share market has kicked off the week on a positive note with help from a couple of takeover bids. The S&P/ASX 200 is up 0.4 per cent or 22 points at 6189. The SPI is pointing to a rise of 11 points. A 15.1 per cent rise from Coca-Cola Amatil following a $9.3 billion takeover bid for the company has helped push the market higher. While private equity giants, Carlyle and Private Equity Partners (PEP) have upped their bid for Link Administration. The tech and consumer staples sectors are doing well off the back of the bids. Materials not so lucky today it’s in the red after steep falls in commodity prices including iron ore, coking coal and crude oil. Westpac has shed 0.1 per cent but that’s not too bad given the bank’s disclosure of $1.2 billion hit to its earnings announced this morning.
Local economic news
The ABS has released a preliminary read on International Merchandise Trade for September. Exports of goods in September 2020 increased by 3 per cent to $28.9 billion. While, imports of goods in September 2020 declined by 1 per cent to $23.8 billion. With the exports increase in September Australia has recorded a goods trade surplus of $5.1 billion.
Online payments platform Zebit (ASX:ZBT) has tumbed on its debut on the ASX, with its shares tumbling nearly 20 per cent inside the opening minutes of trade.
The company began trading at 11am, had listing at a price of $1.58 opened at $1.50 and is currently trading at $1.23
Orocobre has temporarily paused operations at the Olaroz lithium facility in Argentina after 35 employees returned positive COVID-19 test results. The facility will be shut in order to undertake cleaning and rotation of staff, with operations expected to recommence early this week. The stoppage is not expected to materially affect operations or financial results. Shares in Orocobre (ASX:ORE) are trading 2.1 per cent higher at $2.73.
Meantime, New Energy Solar (ASX:NEW) will sell its two NSW solar farms, citing limited support for the listed renewables industry in Australia. The ASX-listed company, which owns 14 solar projects in the US, plans to offload its 110 megawatt Beryl plant and 55MW Manildra facility in NSW after a strategic review of its assets conducted by RBC. Shares in New Solar Energy (ASX:NEW) are 2.6 per cent higher at 80 cents.
Best and worst performers
The best-performing sector is consumer staples gaining 1.5 per cent while the materials sector is lagging behind shedding 0.2 per cent. The best performing stock in the S&P/ASX 200 is Coca Cola Amatil (ASX:CCL) rising 15.1 per cent to $12.37, followed by shares in IDP Education (ASX:IEL) and Iluka Resources (ASX:ILU) The worst performing stock in the S&P/ASX 200 is Deterra (ASX:DRR) dropping 4.5 per cent lower to $4.40 , followed by shares in Resolute Mining (ASX:RSG) and Cooper Energy .(ASX:COE).
Gold is trading at US$1,902 an ounce.
Iron ore has shed 3.6 per to $115.60
Iron ore futures are suggesting a fall of 2.2 per cent.
One Australian dollar is buying 71.35 US cents.