Australian shares edge up as mining gains offset banking losses

InvoCare

15/05/2023 08:25

* 
      ASX 200 closes up 0.1%
    

        * 
      Mining index up 0.8%; BHP +0.9%, FMG +1.4%
    

        * 
      Newcrest Mining up 1.5%
    

  
 (Updates to close)
    By Ayushman Ojha
       May 15 (Reuters) - Australian shares settled slightly
higher on Monday, as losses in financials and tech stocks were
offset by gains in gold and mining stocks, while Newcrest Mining
 NCM.AX  rose on backing a A$26.2 billion ($17.8 billion)
takeover offer.    
    The S&P/ASX 200 index  .AXJO  rose 0.1% to close at 7,267.1
points. The benchmark rose 0.5% last week. 
    Newcrest climbed 1.5% after the gold miner said it
recommended its shareholders vote in favour of Newmont Corp's
 NEM.N  offer at a meeting expected to be held in September or
October.
    The merger is set to be the third-largest deal ever
involving an Australian company and the third-largest globally
in 2023. The gold sub-index  .AXGD  closed 2.5% higher.  
        Miners  .AXMM  ended 0.8% higher, with BHP  BHP.AX  and
Fortescue  FMG.AX  gaining 0.9% and 1.4%, respectively.  
  
    Major indexes on Wall Street slipped on Friday after data
showed U.S. consumer sentiment dropped last month on worries
that political haggling over raising the borrowing cap could
trigger a recession.  .N 
    Jitters triggered by the uncertainty over lifting the U.S.
debt ceiling and the return of bank sector woes persisted among
investors globally. 
    "I guess there is trepidation after a lot of macro
information last week and we still have the debt ceiling coming
up. So, the market is going to be pretty choppy this week until
we get a bit more clarity on macro issues," said Brad Smoling,
an analyst at Smoling Stockbroking.
    Heavyweight financials sub-index  .AXFJ  dropped 0.8% with
ANZ Group  ANZ.AX  tumbling 4%, its biggest percentage drop
since last November.
    Among individual stocks, InvoCare Ltd  IVC.AX  shares jumped
12.1% after it revealed a higher A$1.86 billion ($1.26 billion)
offer from global private equity firm TPG.
    Aristocrat Leisure  ALL.AX  said it will acquire
Israel-based online gaming solutions provider NeoGames SA
 NGMS.O  for about $1 billion to improve its foothold in the
real-money gaming (RMG) space. Shares rose 2.1%.
    In New Zealand, the benchmark S&P/NZX 50 index  .NZ50 
remained flat, to close at 11,938.84 points.
($1 = 1.4743 Australian dollars)

 (Reporting by Ayushman Ojha in Bengaluru; editing by Eileen
Soreng)
 ((Ayushman.Ojha@thomsonreuters.com;))
 
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