The overall positive state of affairs in the resources sector was in contrast to falls in the domestic banking sector. But while many of the big banks gave a flat performance today, the Aussie dollar lifted against most major currencies, clocking in just shy of 94c against the US dollar.
Back to the mining camp, and the BHP–Rio takeover bid stormed back into the headlines amid speculation BHP may up its bid proposal from 3.4 to a full 4 BHP stocks per Rio share.
However most traders weren’t holding their collective breaths.
“The resources stocks were up overnight and there were rumours that BHP will increase its bid but I think it is unlikely,” ABN AMRO Morgans private client adviser Trent Muller told AAP earlier today.
Another skeptical money man, Southern Cross Equities director Charlie Aitken, labelled the bidding rumour “absolute rubbish” and questioned the rationale behind such an offer.
“Why on earth would BHP raise their bid when the ratio is trading below their bid
and they haven’t even got European approval?” he said to Dow Jones newswire.
“I think it’s completely made up and the performance of BHP and Rio in London by the end of the night tells you no one believes it anyway,” he added.
BHP Billiton closed the day at $43.39 a 59c (1.4%) gain, while Rio shut up shop $5.40 (3.84%) higher at $146 a share.
Straits Resources’ move to separate its metals and mining assets from its coal interests had a positive effect on its share price, pushing Straits stocks up 39c (6.3%) to $6.60.
At what will probably be the last ever annual general meeting for Oxiana (at least in its current unmerged form), the company’s managing director Owen Hegarty ordained Andrew Michelmore as the right choice for the head of the merged Oxiana-Zinifex entity.
But not all in attendance agreed, with Oxiana shareholder and Crikey! agent provocateur Stephen Mayne saying it was “shocking” that Hegarty would not be filling the combined group’s top job.
Mayne also criticised the fact that only Zinifex shareholders would be voting on the proposed merger.
“It looks like you’re conscious of the Owen issue and you’re structuring this deliberately to avoid a shareholder revolt of the Oxiana shareholders,”AAP reported Mayne as saying.
Oxiana posted a 12c gain to close the day at $3.45 a share.
Gold rallied overnight to command $945.30 an ounce on the spot market.
Today’s trading saw gold plays Saracen Minerals, Sino Gold and Barra Resources all make gains of over 7% - or a flat 8% in the case of Saracen which closed at 27c. Sino posted 43c a share and Barra 29.5c.
Finally, the $500 million Opes Prime debacle has gone all the way to the Federal Court with a hearing from investors caught up with the failed financial kicking off today.
