ASX ends near a record high buoyed by takeover talks
Make us a preferred source
Make us a preferred source on Google
The news: Australian shares closed near a record high, driven by strong performances in the technology and financial sectors, as well as a surge in lithium stocks following Rio Tinto's takeover talks with Arcadium Lithium. Overall, the market saw positive performance in seven out of the eleven sectors.
The numbers: The S&P/ASX 200 rose 55.4 points, or 0.7%, to 8205.4, just 7 points shy of the record closing high of 8212.2 set in September. Arcadium Lithium shares soared 46% to $6.09, while Rio Tinto fell 2.5% to $121.17. The November futures contract for iron ore traded in Singapore climbed 1.7% to over $US110 ($168) per tonne.
In other commodities, index-heavy mining giants BHP rose 0.6 per cent to $44.86 and Fortescue leapt 3 per cent to $20.35.
Among the notable performers in the banking sector, National Australia Bank rose by 1.9% to reach $37.12, Westpac showed a strong increase of 2.2% closing at $30.78, and the Commonwealth Bank improved by 1.5%, ending at $134.77.
The context: The Australian market's performance mirrored a Wall Street rally following a strong US labour report, which eased recession fears. Rio Tinto's confirmed takeover discussions with Arcadium Lithium boosted sentiment in the battered lithium sector, forcing speculators to cover their short positions.
Energy shares closed higher amid concerns about potential supply disruptions in the Middle East, while mining giants BHP and Fortescue gained on speculation of new stimulus measures from China's top economic planner.
