Take-over action and rising commodity prices helped the Australian stock market rally this morning.
At lunchtime the ASX 200 was 28 points or 0.6% ahead at 4765 as a broad rally lifted all sectors higher except energy. Resource sectors and telecoms fronted the gains.
"We had a pick-up in gold and precious metals and oil prices last night," RBS Morgans Ipswich manager Tony Russell told Fairfax. "We probably got sold down a little bit harshly yesterday, and that was probably exaggerated because of the lack of liquidity in the market."
Market sentiment was boosted by a wave of take-overs involving local companies. Rio Tinto rallied after launching a $16 per share offer for Riversdale. Atlas Iron swooped on rival Giralia with a $828 million recommended offer. Shares in property developer Lend Lease jumped 4% after it agreed to buy German construction firm Bilfinger Berger's local unit, Valemus. Building materials supplier Boral announced it will acquire American stone veneer supplier, Owens Corning Masonry Products, for around $90 million.
Asian markets recovered from yesterday's Korean jitters. Japan's Nikkei rallied 0.75%, Shanghai 0.27% and Hong Kong's Hang Seng 0.32%. Dow futures were recently at +11.
Crude oil futures rallied 25 cents this morning to $89.45 a barrel. Spot gold was $1.70 stronger at $1,386.70 an ounce. The dollar was edging back towards parity, recently buying 99.63 U.S. cents.
A bullish morning. Well done to the AAE surfers. I'm winding down for Christmas. Will probably take next week off if the in-laws go home and the weather lets me paint the house. Just one trade this morning - in and out of RER for a day's wage.
