The Australian stock market has had a mixed session so far, with health and technology stocks dragging on while mining and energy stocks have risen.
Important points:
- BHP is selling its 80 percent stake in a coal metallurgical joint venture in Queensland
- Priceline Owner API has recommended shareholders vote in favor of a takeover bid from Wesfarmers
- Travel stocks rose as the Sydney Airport board of directors backed a $ 24 billion acquisition deal
At 12:30 p.m. AEDT, the ASX 200 was 0.1 percent lower at 7,446.8 points.
Gains in the raw materials and energy sectors helped offset some of the losses elsewhere, with BHP shares rising 1.4 percent.
The mining giant announced the sale of its stake in a Queensland metallurgical coal joint venture for up to $ 1.35 billion ($ 1.8 billion).
Stanmore Resources will follow up BHP’s 80 percent stake in BHP Mitsui Coal for an initial payment of $ 1.1 billion in cash, an additional $ 100 million in six months, and a potential follow-up payment of $ 150 million two years depending on the coal buy prices.
Stanmore Resources shares rose 15.2 percent.
“The transaction is in line with BHP’s strategy,” said Edgar Basto, head of the Australian mining company.
“As the world decarbonizes, BHP is increasing its focus on producing high quality metallurgical coal, which is sought after by global steelmakers, in order to increase efficiency and reduce emissions.”
The joint venture includes the South Walker Creek and Poitrel mines in the Bowen Basin, Queensland.
Other miners were also on the rise, including Rio Tinto (+1.3 percent), Fortescue (+0.1 percent) and South32 (+2.6 percent).
Gold mining stocks were among the best performers in the benchmark index, with St. Barbara (+6.1 percent), Evolution Mining (+5.4 percent) and Regis Resources (+3.6 percent) all up strongly.
Financials were the main drag on the market as ANZ (-2.1 percent) and Macquarie Group (-1 percent) fell as they traded with no access to their recent dividend payments.
The health sector posted its worst performance in three weeks, with losses at CSL (-0.9 percent), Resmed (-1.8 percent) and Sonic Healthcare (-2.6 percent).
Wesfarmers shares lost 1.1 percent when the company secured a deal to acquire pharmacy group API for $ 764 million.
API shares rose 2.4 percent on the news after rival bidder Sigma withdrew its proposal to merge with API last week.
API owns brands such as Priceline, Soul Pattinson Chemist, and Pharmacist Advice.
The company’s board of directors has recommended that shareholders vote in favor of the Wesfarmers deal.
Travel stocks rise due to the airport deal
Sydney Airport shares rose 2.8 percent thereafter its board of directors supported a takeover by a group of pension funds and infrastructure investors.
The $ 24 billion buyout deal, one of the largest in Australian corporate history, requires approval from the competition authority and the Foreign Investment Review Board as well as shareholders.
The board of directors of Sydney Airport has recommended that the shareholders accept the takeover offer.abc news)
The Sydney Aviation Alliance comprises the Australian investors IFM Investors, QSuper and AustralianSuper as well as the US-based Global Infrastructure Partners.
Sydney Airport shares are up around 30 percent since January after slumped in the depths of the pandemic.
Other travel stocks rose, including Flight Center (+4.6 percent), Webjet (+2.4 percent) and Qantas (+3.9 percent).
Employment growth in the US is driving global markets
Global markets rose on Friday following a rebound in employment growth in the United States.
The number of people employed outside agriculture rose by 531,000 in October and the unemployment rate fell to 4.6 percent.
On Wall Street, the S&P 500 rose 0.4 percent during the session and rose 2 percent over the course of the week.
ABC / Reuters
