off-the-wire

Australian shares edge up as mining gains offset banking losses

Kitco Media
By Reuters
Published:
Updated:
Reuters

* 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 rose on backing a A$26.2 billion ($17.8 billion) takeover offer.

The S&P/ASX 200 index 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 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 closed 2.5% higher.

Miners ended 0.8% higher, with BHP and Fortescue 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. 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 dropped 0.8% with ANZ Group tumbling 4%, its biggest percentage drop since last November.

Among individual stocks, InvoCare Ltd 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 said it will acquire Israel-based online gaming solutions provider NeoGames SA 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 remained flat, to close at 11,938.84 points. ($1 = 1.4743 Australian dollars) (Reporting by Ayushman Ojha in Bengaluru; editing by Eileen Soreng)

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