SYDNEY, AAP – A takeover offer for Sydney Airport has helped industrials shares surge on an otherwise flat Australian market.
A consortium of infrastructure investors have made a $22.2 billion offer for the airport, or $8.25 cash per each stapled security.
The airport’s board is examining the offer, but investors seemed to like it.
Shares were higher by 29.69 per cent to $7.53.
The surge helped make industrials shares the standout category, higher by 4.59 per cent.
Energy shares were next best, up 1.31 per cent, following a break-down in OPEC talks last week.
The benchmark S&P/ASX200 index was up 3.4 points, or 0.04 per cent, to 7312 at 1200 AEST.
The All Ordinaries was higher by 1.7 points, or 0.02 per cent, to 7588.8.
In the US, investors are celebrating the Independence Day holiday and there will be no trade tonight.
Wall Street scaled new highs on Friday after jobs data for June showed robust hiring yet persistent weakness in the labour market that will keep the Federal Reserve from raising interest rates soon.
The three major US indices – the S&P, Dow and Nasdaq – closed at record highs.
In Australia, people in Sydney and surrounding regions are enduring their second week of a coronavirus lockdown.
Another 35 people have been infected with COVID-19 in New South Wales, according to Monday’s update.
Meanwhile house building approvals dropped by more than 10 per cent in May, retreating from the record high posted a month earlier.
Australian Bureau of Statistics figures showed approvals for private sector houses fell 10.3 per cent in May to 13,571.
In other ASX news, Tabcorp will demerge its lotteries and Keno business following a long-running review.
Tabcorp will also demerge its wagering business, which includes TAB and the Sky racing broadcast operation.
Shares in Tabcorp were down 4.8 per cent to $4.95.
Meanwhile BetMakers Technology Group, which in May tried to buy Tabcorp’s wagering business, said the two were discussing overseas opportunities.
The company said it also completed buying tote provider Sportech.
Shares were up 5.26 per cent to $1.10.
Some of the big energy providers were doing well.
Woodside was higher by 2.31 per cent to $23.44. Santos gained 1.33 per cent to $7.22.
The major category of financial shares was lower by 0.56 per cent.
The big four banks were all lower by less than one per cent.
Another major category, materials shares, was higher by 0.11 per cent.
The big miners were mixed. BHP lost 0.37 per cent to $48.37. Fortescue gained 0.29 per cent to $23.65. Rio Tinto shed 0.02 per cent to $125.68.
The Australian dollar was buying 75.21 US cents at 1200 AEST, higher from 74.64 US cents at Friday’s close.