Shares closed firmer on Wednesday, driven by hopes of further merger activity following the $11.3 billion tie-up between Tatts and Tabcorp.
Investors digested a slew of equities news, while consumer discretionary stocks led the bourse higher, followed by telecommunications and real estate companies. Solid interest in the banks also saw the market finish in the green.
The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index each rose 0.5 per cent to 5435.4 points and 5518.4 points respectively.
“There’s been a vacuum of negative news over the last 24 hours, our market is sitting on key levels of support and investors are buying any signs of positivity,” said Gary Huxtable, client adviser at Atlantic Pacific Securities. The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index each rose 0.5 per cent.
“Bond yields continue to retrace from recent highs, so sentiment has improved towards bond proxies, the likes of Telstra and Sydney Airport as investors are willing to take on equity risk in return for dividends,” he said.
The Tabcorp and Tatts merger was the big deal of the day and the shares came out of trading halts just before lunchtime. Tatts shares rocketed higher and closed the day up 15.8 per cent to $4.16. Tabcorp shares were up 3.5 per cent to $5.06.