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 23rd 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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Frequently Asked Questions about this Article…
The Australian share market experienced early volatility due to fluctuations in the ASX200 index, which initially firmed after opening, then dropped around 40 points before recovering to trade near the day's high at 5911.
Toll Holdings' stock price soared by 47% to $8.93 due to a cash takeover bid from Japan Post, which offered a near 50% premium on the previous day's closing price. The offer has the backing of Toll Holdings' board.
The Industrial sector led the gains on the Australian share market, largely driven by the significant rise in Toll Holdings' stock price following the takeover bid from Japan Post.
Woodside Petroleum's stock price rallied by 4% following the release of its impressive full-year earnings, contributing to the positive performance of the Energy sector.
Caltex's stock is trading at all-time highs, gaining 4.5%, as the market speculates positively about the company's delayed full-year results, which are expected to be announced on February 23rd.
IAG's stock faced a negative market reaction due to disappointing half-year results, with net profits down by 10%, leading to a decline in its stock price.
The Australian dollar has edged higher for the day, trading at 0.7820 against the US dollar, but it remains range-bound between 0.7650 and 0.7850 for the month.
The takeover bid for Toll Holdings by Japan Post might spark a fresh round of takeover speculation, potentially attracting investors to other companies that could be seen as possible takeover targets.
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