Australia Market extends gain for fourth day

  • Sep 16, 2019
  • Australia News Today

Headline indices of the Australia share market advanced of fourth straight session on Monday, 16 September 2019, thanks to strong gains from energy, gold and infant formula stocks which helped to offset losses in financials amid global growth jitters. At closing bell, the benchmark S&P/ASX200 index advanced 4.30 points, or 0.06%, to 6,673.48, while the broader All Ordinaries rose 4.86 points, or 0.07%, to 6,782.01.

Energy stocks surged after crude oil prices spiked as much as 20% this morning after two plants at the heart of Saudi Arabia’s oil industry were attacked on Saturday. This has affected around half the country’s oil production and around 5% of global supply. Among oil and gas stocks, Oil Search (OSH), Woodside (WPL) and Origin (ORG) surged by as much as 6.5%.

Shares of bullion companies climbed up as traders scurried into safe haven buying, due to an increase in political tensions in the Gulf region

Infant formula makers surged thanks to news of a A$1.5bn takeover bid for Tasmania based Bellamy’s (BAL).

BAL shares rose by 55% as Chinese backed Mengiu Dairy launched a A$13.25 cash offer per share for the group. This is a 59% premium to Friday’s share price. While the bid has been approved by BAL’s Board it will still need to get past the FIRB and a shareholder vote in December. Other companies in the industry, including A2 Milk (A2M), Blackmores (BKL) and Bubs (BUBS) rose strongly.

Financial stocks, the heaviest components of the Australian benchmark, closed down, with all of the Big Four banks – Commonwealth Bank of Australia, Westpac Banking Corp, National Australia Bank and Australia and New Zealand Banking Group – ended lower.

CURRENCY NEWS: The Australian dollar rose against greenback on Monday. The Australian dollar, sensitive to shifts in broader risk appetite, changed hands at $0.6878 after rising from levels below $0.684 in the previous trading week.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)