ASX up 0.6%; Link surges on takeover bid, CBA gains on rate hike - YouTube

Hello and good afternoon. I’m Holly reporting live  

from Kalkine Studios, and you’re  watching ‘The Mid-Market Pulse’.

Australian shares extended their early gains  by the afternoon, tracking the strong finish  

on Wall Street in overnight. The equity market  rose for a third straight session today after the  

US Federal Reserve indicated that it was in no  hurry to raise interest rates, while the Bank  

of England’s decision to keep its benchmark rate  at a record low also bolstered sentiments. The  

investors also cheered reopening of borders  by Victoria and NSW, which will facilitate  

free travel between Australia’s two biggest  states well ahead of the Christmas period.  

By the afternoon trade, the ASX  200 index was up 42.20 points or  

0.57%. The benchmark index opened higher  today, and gained as much as 0.4%.  

On the sectoral front, nine of the 11 sectoral  indices were trading in green zone, led  

by telecom and property space. The telecom  sector was up 1.5% by mid-session,  

followed by over 1% gain in A-REIT and material  indices. Utilities, consumer staples, health care,  

and consumer discretionary sectors also witnessed  spurt in buying activities. Bucking the trend,  

the IT sector dropped 0.8%, undermining  firm cues from the US counterpart, NASDAQ.

Meanwhile, the energy sector extended losses for  the second day as crude oil prices sank overnight.  

Oil prices tumbled amid a report that OPEC  and its allies led by Russia rejected the US  

President Joe Biden’s pleas for a large production  hike. The cartel approved a 400,000 barrel-a-day  

output hike for December, which is unlikely  to sustain the post-COVID economic recovery.

The top gainer on the ASX pack was fund  administration company Link Administration,  

which surged over 11%. Some of the other top  gainers were media businesses News Corporation  

and REA Group, gold miner Northern Star Resources,  and real estate grpup Cromwell Property.  

On the losing side, biopharma major Clinuvel  Pharmaceuticals topped the chart with a 15.4%  

loss. Some of the top laggards were English bank  Virgin Money UK, buy now pay later major Afterpay,  

Westpac, and food beverage business Inghams.

And now, before we look at some more  stocks, lets take a small break.

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Welcome back. I’m Holly reporting live  from Kalkine Studio. You are watching ‘The  

Mid-Market Pulse’. Let’s move on to stocks  that created a buzz on the ASX today.        

Shares of Commonwealth Bank of Australia  nearly 1% higher after it hiked home loan  

rates for the second time in around  a month. The country’s largest home  

loan lender raised fixed rates on home  loans by 0.1% to 0.5%. On Thursday,  

rival Westpac had also hiked rates for the second  time in around two weeks. The banks are raising  

home loan rates after the Reserve Bank scrapped  its policy to control three-year bond yields.

Shares of News Corporation jumped over 10%  after the US-based media company reported robust  

earnings in first quarter ended September 30,  2021. The media firm has reported over six-fold  

growth in net profit to US$267 million. The total  revenues surged 18%. The company also announced  

a US$1 billion share buyback program and the  termination of the stockholder rights agreement.

Shares of investment management group Pendal  climbed over 2% on robust annual earnings.  

The fund manager reported 41.5% jump in net profit  

for the financial year to September  30, 2021. The revenue rose 34.6%.  

The company also proposed to pay a final dividend  up 11% to 24 cents per share on December 16.

Shares of Woodside Petroleum dropped  1.5% after oil and gas major lowered its  

gas reserve estimates. The energy giant has  raised the reserves and resource estimates  

for 1P filed, located in the Greater Pluto  region, by 10%. However, it has lowered its  

2P field estimate by around 10%. Overall, the  total reserve estimates dropped by nearly 10%.  

The Greater Pluto project off Western Australia is  a significant and valuable resource for Woodside.

Shares of Link Administration surged over 11%  after fund administration company received  

a takeover offer. The company informed its  shareholder this morning that it has received  

a takeover bid from Carlyle Asia Partners,  an affiliated entity of The Carlyle Group,  

to acquire 100% stake in the company. The bid  comprised of cash offer of AU$3 per Link Group  

share and a pro rata distribution of  Link Group’s shareholders at AU$2.38  

apiece. The bid values each Link Group share at  AU$5.38, a 24.2% premium to last closing price.  

The Link Group board will consider the proposal,  including obtaining advice from its financial,  

legal and tax advisers. It has appointed Macquarie  

Capital and UBS as its financial advisers and  Herbert Smith Freehills as its legal adviser.

Well, that’s a wrap in the show. Keep  watching kalkine tv for more trending  

market updates from Australia  and around the world.