Oct 19 Australian shares extended gains on
Wednesday after Tabcorp Holdings said it agreed to
takeover Tatts Group in a cash-and-stock deal, helping
the target company post its biggest-ever intraday percentage
The S&P/ASX 200 index rose 0.4 percent or 20.05
points to 5,430.8 by 0057 GMT.
The A$6.36 billion ($4.87 billion) takeover of Tatts will
create a A$10.44 billion betting industry giant that could help
fend off popular online rivals.
"The Tatts-Tabcorp deal is certainly a positive because it
is a takeover corporate action and it has helped the markets,"
said Will Keenan, general manager of direct equities research at
Tatts jumped as much as 18.1 percent to a 9-month high, with
12 million shares trading, about 2.5 times its 30-day average
volume. Tabcorp climbed as much as 2.9 percent.
"Another positive is that the bond yields have retreated a
touch overnight and they had been creeping up," Keenan added.
Benchmark U.S. 10-year Treasury notes fell 6/32
in price to yield 1.7449 percent.
Sentiment was also boosted by gains on Wall Street, with
upbeat earnings by Goldman Sachs Group and UnitedHealth
Group lifting stocks.
Of the 52 S&P 500 companies that have reported third-quarter
results to date, 81 percent had beaten analysts' average
estimates, according to Thomson Reuters I/B/E/S.
Seven of the nine major sectors on the benchmark Australian
index recorded gains, with consumer discretionary and financials
contributing the most.
Australia and New Zealand Banking Group Ltd was up
as much as 0.8 percent, entering the third straight session of
gains, while National Australia Bank Ltd rose as much
as 0.7 percent.
The gold index climbed 2.9 percent, after a weaker
dollar assisted prices, with Newcrest Mining gaining
2.8 percent to touch its two-week high.
Global miner Rio Tinto rose nearly 1 percent.
At the other end, BHP Billiton fell 1.4 percent
after the mining giant said it was seeing signs of recovery in
commodities markets but cautioned that supply was still running
ahead of demand even with stronger than expected steel
consumption in China..
Charter Hall Group touched a five-month low after
it cancelled a A$1.12 billion initial public offering of a
Advancers outnumbered decliners by a more than 2:1 on the
New Zealand's benchmark S&P/NZX 50 index was flat at
6,967.49, after two sessions of losses.
Gains in energy and industrials stocks were offset by
declines in materials and utilities.
Z Energy Ltd and Air New Zealand Ltd were
up 2.2 percent and 1.7 percent, respectively. Fletcher Building
Ltd fell 1.1 percent.
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(Reporting by Suhail Hassan Bhat; Additional reporting by
Justin George Varghese in Bengaluru; Editing by Eric Meijer)