The Australian sharemarket closed higher on Thursday, though materials stocks fell as rare earths producers faltered and BlueScope rejected a takeover bid.
The ASX 200 finished 0.3% higher at 8,720.80. All sectors except materials climbed.
Materials stocks dropped 1.3%. Lynas Rare Earths shares shed 5.2% and Iluka Resources lost 3.3% following China’s ban on exports of dual-purpose civilian-military items, which includes some rare earths.
BlueScope Steel rejected SGH and United States-based Steel Dynamics’ A$13.15 billion takeover bid, sending shares down 1.8%. SGH had aimed to acquire all of BlueScope’s shares and then sell its U.S. business to Steel Dynamics, in Steel Dynamics' fourth bid for the company.
“Let me be clear – this proposal was an attempt to take BlueScope from its shareholders on the cheap,” said BlueScope chair Jane McAloon in an ASX announcement. “It drastically undervalued our world-class assets, our growth momentum, and our future – and the Board will not let that happen.”
Ansell shares fell 6.2% after the company announced CEO Neil Salmon’s retirement. Former Fiskars Group CEO Nathalie Ahlström will take over from 16 February.
Reserve Bank of Australia deputy governor Andrew Hauser said better-than-expected inflation data did not increase the chance of further rate cuts, meanwhile.
Yesterday’s consumer price index data showed headline inflation was 3.4% in the 12 months to November, easing from 3.8% in October. Trimmed mean inflation also lowered from 3.3% to 3.2%.
Australia’s balance of trade decreased by A$1.42 billion in November, the Australian Bureau of Statistics said today. Exports declined by 2.9%, driven by metal ores and minerals, and imports increased 0.2%.
Two-year bond yields fell 0.04% to 3.977%, while 10-year yields were down 0.02% to 4.656%.
