AUSTRALIA SHARES FIRM 0.6% ON CHINA STIMULUS HOPES
DATE: 16/07/2012
MELBOURNE: Australian
shares gained 0.6 per cent on Monday, led by miners as commodities prices
rallied on hopes for global growth as China said it would step up efforts to
boost the economy of Australia's top trading partner.
Shares in Whitehaven Coal soared as much as 21 per cent after coal mining magnate Nathan Tinkler offered $5.3 billion to take the company private with support lined up from some key shareholders.
Whitehaven shares opened at A$4.10 and finished up 18 per cent at A$4.07, compared with the offer of A$5.20 a share.
Among the big global miners, BHP Billiton and Rio Tinto advanced 1.0 per cent and 0.8 per cent respectively ahead of quarterly production reports due this week.
Kimber Capital managing director Chris Kimber said commodities prices should be reflected in stronger share prices for the top global miners, which are expected this week to report robust production of iron ore.
"Either commodities prices are wrong, or all our big resource stocks have to go up. You can't have both," said Kimber, referring to BHP and Rio trading at two- to three-year lows.
Sentiment was helped after China's Premier Wen Jiabao said efforts to stabilise the economy were working and the government would step up efforts in the second half of the year to increase policy effectiveness and foresight.
The benchmark S&P/ASX 200 index ended up 22.9 points to 4,105.1. The benchmark rose 0.4 per cent on Friday, snapping a six-day losing streak.
Still, the index finished off its intraday high of 4,126.9 as investors remained nervous and volume was around 60 per cent of an average day.
"There is so much negative sentiment, everyone is waiting for the next shock," Kimber said.
New Zealand's benchmark NZX 50 index closed down 0.8 per cent to 3,467.3.
Shares in oil and gas producer Beach Energy jumped 2.7 per cent to A$0.965 after it announced plans to accelerate its unconventional gas programme with Icon Energy.
There was heavy trade in business services group Spotless , which has agreed to be taken private by Pacific Equity Partners, of almost 10 times normal volume.
Traders said one large parcel of 7.6 million shares was likely sold by a hedge fund closing its position ahead of next week's vote on the takeover, which is expected to sail through. The shares rose 0.4 per cent.
Shares in media group Seven West Media were halted after it said it plans to tap shareholders to raise A$440 million ($450 million) in new shares to cut its heavy debt load.
Shares in Whitehaven Coal soared as much as 21 per cent after coal mining magnate Nathan Tinkler offered $5.3 billion to take the company private with support lined up from some key shareholders.
Whitehaven shares opened at A$4.10 and finished up 18 per cent at A$4.07, compared with the offer of A$5.20 a share.
Among the big global miners, BHP Billiton and Rio Tinto advanced 1.0 per cent and 0.8 per cent respectively ahead of quarterly production reports due this week.
Kimber Capital managing director Chris Kimber said commodities prices should be reflected in stronger share prices for the top global miners, which are expected this week to report robust production of iron ore.
"Either commodities prices are wrong, or all our big resource stocks have to go up. You can't have both," said Kimber, referring to BHP and Rio trading at two- to three-year lows.
Sentiment was helped after China's Premier Wen Jiabao said efforts to stabilise the economy were working and the government would step up efforts in the second half of the year to increase policy effectiveness and foresight.
The benchmark S&P/ASX 200 index ended up 22.9 points to 4,105.1. The benchmark rose 0.4 per cent on Friday, snapping a six-day losing streak.
Still, the index finished off its intraday high of 4,126.9 as investors remained nervous and volume was around 60 per cent of an average day.
"There is so much negative sentiment, everyone is waiting for the next shock," Kimber said.
New Zealand's benchmark NZX 50 index closed down 0.8 per cent to 3,467.3.
Shares in oil and gas producer Beach Energy jumped 2.7 per cent to A$0.965 after it announced plans to accelerate its unconventional gas programme with Icon Energy.
There was heavy trade in business services group Spotless , which has agreed to be taken private by Pacific Equity Partners, of almost 10 times normal volume.
Traders said one large parcel of 7.6 million shares was likely sold by a hedge fund closing its position ahead of next week's vote on the takeover, which is expected to sail through. The shares rose 0.4 per cent.
Shares in media group Seven West Media were halted after it said it plans to tap shareholders to raise A$440 million ($450 million) in new shares to cut its heavy debt load.
POWERED BY: THE ECONOMIC NEWS
www.goldennifty.com
No comments:
Post a Comment