Australian Share Market Finishes Flat Amid NAB Acquisition and Market Volatility

Strategic Insights -

The Australian share market closed relatively flat despite a strong start to the day, with National Australia Bank's (NAB) proposed acquisition of wealth manager AXA Asia Pacific Holdings dominating the headlines. The deal, valued at approximately $13.29 billion, saw NAB's shares drop by $1.35, or 4.65%, to $26.65. Meanwhile, AXA Asia Pacific Holdings shares surged by 72 cents, or 12.74%, to $6.37.

Key Takeaways:

  • National Australia Bank's proposed acquisition of AXA Asia Pacific Holdings, valued at $13.29 billion, pulled the bourse lower after early rises.
  • The deal will see NAB partner with AXA SA, the majority shareholder of AXA Asia Pacific Holdings, to complete the acquisition.
  • AMP Ltd's bid to become the nation's biggest superannuation and retirement provider was trumped by NAB's deal.
  • Woodside Petroleum resumed trading after a trading halt and fell 8.8 cents to $47.60, despite generating $1.7 billion in commitments in the institutional component of a recent capital raising.
  • Other financial stocks mostly finished lower, with CommonWealth Bank, Westpac, and Macquarie Group falling by $0.59, $0.25, and $1.20 respectively.
  • ANZ bucked the trend and finished up $0.08 at $21.58.
  • The big miners rose, with BHP Billiton up 36 cents to $41.41 and Rio Tinto gaining 85 cents to $71.65.
  • Gold producers were mostly stronger, with Lihir rising four cents to $3.27 and Newmont gaining two cents to $5.60.

Statistics:

  • NAB shares dropped by $1.35, or 4.65%, to $26.65.
  • AXA Asia Pacific Holdings shares surged by 72 cents, or 12.74%, to $6.37.
  • Woodside Petroleum generated $1.7 billion in commitments in the institutional component of a recent capital raising.
  • Spot gold was trading at $US1,130.45 per fine ounce, up $US6.67 from Wednesday's closing price of $US1,123.78.
  • The Australian share market closed relatively flat.

Sources:

  • "Woodside Petroleum, which had been in a trading halt since December 14, resumed trading yesterday and fell 8.8 cents, to $47.60." - (Exact phrase as per original text)
  • "NAB is a very large chunk of the index, and so is Woodside," Ms Chan said. - (Exact phrase as per original text)
  • "At the local close, spot gold was trading at $US1,130.45 per fine ounce, up $US6.67 from Wednesday's closing price of $US1,123.78." - (Exact phrase as per original text)