Local market recovers from early jitters, as TOL soars

It’s been an interesting day on the Australian share market, marked by some notable volatility early on. The ASX200 index firmed after the open, before diving around 40 points, and then recovering plus some to be now trading around 5911, near the day’s high.

The Industrial sector is leading the charge, and its gains are largely attributable to Toll Holdings’ meteoric rise. The logistics company has received a cash takeover bid from Japan Post, representing a near 50% premium on yesterday’s close price, and the offer has the backing of the board. It’s currently up 47% at $8.93. This event may also spark a fresh round of takeover speculation, and in turn woo investors into other possible targets.

The Energy sector is also a standout, with Woodside Petroleum rallying 4% after its impressive full year earnings release. Caltex too is feeling the love, gaining 4.5% and trading at all-time highs, after delaying its full year results until the 23^rd of February. It seems the market is speculating the delay is suggestive of something positive is in the works.

On the flipside, IAG is being punished for its disappointing half year results, with net profits down 10%.  

Meanwhile, the Aussie dollar has edged higher for the day, but remains range bound between around 0.7650 and 0.7850 for the month. It last traded 0.7820 against the greenback.

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