Market Announcements
Market Summary
A $356 million cash takeover offer for advanced manufacturer Rakon failed to move the New Zealand sharemarket, which opened the week with a small decline. The S&P/NZX 50 Index peaked at lunchtime and then gradually slid in the afternoon to close at 13,683.29, down 12.96 points or 0.09% after reaching an intraday high of 13,727. There were 83 gainers and 60 decliners on the main board during another day of quiet trading, with 31.1 million shares transactions worth $102.2m.
California-based global family business Bourns is making a full takeover bid for Auckland-based Rakon at $1.55 a share – a 72% premium to Friday’s closing price of 90c. Rakon’s share price closed at $1.36, a rise of 46c or 51.11%. Bourns, which supplies electronic components from 20 manufacturing facilities worldwide, said Rakon’s frequency control products would complement its own offering, and Rakon would operate as a standalone division retaining employees and existing research and development capabilities. Rakon’s three largest shareholders, Robinson family, Taiwan-based Siward Crystal Technology Co and Wairahi Investments, as well as Timemaker, are backing the offer – representing 41.2% of the total Rakon shares on issue.
Gentrack rebounded 27c or 3.21% to $8.67; Napier Port increased 9c or 2.37% to $3.89; Sanford added 19c or 2.48% to $7.85; Serko was up 6c or 1.9% to $3.21; Vulcan Steel gained 19c or 2.17% to $8.94; and AFT Pharmaceuticals improved 7c or 2.01% to $3.55. The retail sector had a good day. Briscoe Group was up 10c or 1.94% to $5.26; Hallenstein Glasson added 15c to $10.05; Michael Hill rose 3c or 6.59% to 48.5c; and The Warehouse collected 2c or 2.74% to 75c.
The mining stocks are in favour on the back of the strong run in gold and silver prices. Santana Minerals increased 8c or 7.11% to $1.20, and Manuka Resources rose 2.9c or 18.47% to 18.6c. But Minerals Exploration was down 1c or 3.92% to 24.5c. The gold price has reached record levels of nearly US$4,570 (NZ$7,956) an ounce, and silver traded at US$83.32 an ounce, up 5%. Freightways was down 14c to $14.12; a2 Milk decreased 10c to $10.68; Sky TV shed 6c to $3.40; Eroad declined 2.5c or 2.02% to $1.21; and Goodman Property Trust shed 4c or 1.98% to $1.98.
Among energy stocks, Meridian was down 11c, or 1.94%, to $5.55, and Contact eased 6c to $9.23.
Source: Business Desk
Australian Market Report
Ahead of the local open SPI futures were 27 points higher at 8788.
- close [Morningstar with AAP]: The local share market has climbed its highest since Christmas Eve after the release of US jobs data suggesting the world's largest economy is in overall good shape.
The benchmark S&P/ASX200 index on Monday finished up 41.5 points, or 0.48 per cent, to 8,759.4, while the broader All Ordinaries rose 46.8 points, or 0.52 per cent, to 9,092.7.
The gains came after a positive lead from Wall Street, with the S&P500 closing Friday at an all-time high after labour market data known as non-farm payrolls showed US unemployment declining and wages rising.
While the report pushed back expectations for the next Federal Reserve rate cut from April to June, Interactive Brokers senior economist Jos?? Torres said the report had boosted investor confidence in the US economy.
"The print signals that labour conditions remain healthy and that the (economic) cycle has legs," he said.
Eight of the ASX's 11 sectors were higher at midday, with utilities lower and materials and property basically flat.
The consumer discretionary sector was the biggest gainer, rising 2.1 per cent as Light & Wonder soared after settling a lawsuit with rival Aristocrat Leisure.
The pokies manufacturer climbed 18.0 per cent to an all-time high of $182.50 after agreeing to pay Aristocrat $US127.5 million ($190 million) for copying Aristocrat's trade secrets in two slot machine games.
Light & Wonder CEO Matt Wilson blamed the intellectual property theft on a rogue ex-employee and said the settlement would allow his company to move forward without distraction or disruption.
Aristocrat rose 0.3 per cent to $57.39.
Elsewhere in the sector, Super Retail Group dropped 5.3 per cent to a six-month low of $14.89 after the Supercheap Auto owner said it expected to announce a first-half profit before tax of between $172 million and $175 million.
Chief executive Paul Bradshaw said the group had posted record sales but elevated promotional intensity had impacted margins, particularly at its sporting goods chain Rebel.
In the heavyweight mining sector, the iron ore giants fell, with BHP dropping 2.5 per cent to $46.51, Fortescue dipping 1.4 per cent to $22.40 and Rio Tinto declining 0.4 per cent to $142.43.
But goldminers shone as the safe haven metal traded above $US4,600 an ounce for the first time following reports the US was preparing for a possible strike on Iran.
Newmont grew 5.8 per cent to an all-time high of $166.59, Northern Star advanced 2.9 per cent to $25.43 and Westgold climbed 4.4 per cent to an all-time high of $6.60.
Rare earth miner Lynas climbed 4.8 per cent to $14.78 while lithium miners PLS and Liontown added 2.6 per cent and 4.9 per cent, respectively.
In the financial sector, all of the big four banks finished higher with ANZ advancing 1.2 per cent to $35.89, NAB growing 1.5 per cent to $41.62, CBA rising 0.6 per cent to $154.08 and Westpac expanding 0.5 per cent to $38.08.
But insurance companies fell amid the catastrophic bushfires in Victoria, which the Insurance Council of Australia declared on Sunday constituted a "significant event" and could be elevated to an "insurance catastrophe".
Suncorp dropped 2.2 per cent to $17.08, IAG fell 3.6 to $7.73 and QBE finished down 1.4 per cent to $19.82.
Suncorp said that as of Sunday night, it had received 60 home and motor claims from the bushfires, as well as 80 from ex-Tropical Cyclone Koji in Queensland.
The Australian dollar was trading for 66.98 US cents, from 66.95 US cents at 5pm on Friday.
ON THE ASX:
The S&P/ASX200 rose 41.6 points, or 0.48 per cent, to 8,759.4
The broader All Ordinaries rose by 46.8 points, or 0.52 per cent, to 9,092.7
The NZX 50 added 20.29 points (0.15%) to 13703.58
Overseas Market Report
[Morningstar with Dow Jones]:
U.S. stocks ended higher. The DJIA rose 0.2% to 49,590.20, the S&P 500 climbed 0.2% to 6,977.27 and the Nasdaq lifted 0.3% to 23,733.90.
Among S&P 500 companies, the top three gainers were Western Digital Corp WDC surging 5.83%, Seagate Technology Holdings PLC STX jumped 5.75%, and DexCom Inc DXCM lifted 5.31%.
The biggest decliners were Synchrony Financial SYF which dropped 8.37%, Capital One Financial Corp COF fell 6.40%, and ON Semiconductor Corp ON lost 5.50%.
Asia
Chinese shares closed higher. The benchmark Shanghai Composite Index rose 1.1% to 4,165.29 and the Shenzhen Composite Index climbed 2% to 2,714.52.
Hong Kong shares ended higher. The benchmark Hang Seng Index added 1.4% to 26,608.48.
Japanese shares ended higher. The Nikkei Stock Average climbed 1.6% to 51,939.89.
India shares ended higher. The BSE SENSEX lifted 0.4% to 83,878.17.
Europe
Stocks in the U.K. finished higher. The FTSE 100 Index added 0.2% to 10,140.70. In Europe, shares closed mixed. The Germany's DAX lifted 0.6% to 25,405.34, and the France's CAC 40 was unchanged at 8,358.76
