April has begun just as March finished, with the domestic market rallying on what was generally stock-specific news.
The S&P/ASX 200 (ASX: XJO) gained 0.3% despite a broad spread of performances, with six sectors higher led by utilities, up 1.1%, whilst tech and materials also rallied 1%; Fortescue Metals Group Limited (ASX: FMG) was a key contributor, gaining 3.0%.
Iluka receives $1 billion loan
Iluka Resources Ltd (ASX: ILU) hit an all-time high, gaining 6.1% on news of a $1 billion loan from the Australian government.
The facility will provide the capital required to fund the construction of Australia’s first rare earths refinery in Western Australia as the government seeks to become more active in the electric vehicle and sustainable energy supply chains.
Pilbara Minerals Ltd (ASX: PLS) and Mineral Resources Limited (ASX: MIN) were other winners from the announcement, up 5.5% and 3.4%.
Telstra’s PNG tax
Shares in Telstra Corporation Ltd (ASX: TLS) were weaker, falling 0.5%, after news emerged over the weekend that the PNG Government had levied a one-off tax on the Digicel Pacific business the group was set to acquire.
The payment of $130 million was only just passed through government and will be challenged, however, it may delay Telstra’s government-backed takeover.
Perpetual lobs bid for Pendal
Whilst the commodity sector was buoyed by stronger prices, all eyes were on the fund management sector which has experienced a torrid 12-month period.
Nearly every active fund manager in the country, from Platinum Asset Management Ltd (ASX: PTM) to Magellan Financial Group Ltd (ASX: MFG), has been sold off heavily on growth concerns. However, all of them rallied on Monday after value manager Perpetual Ltd (ASX: PPT) lobbed a $2.4 billion takeover bid for Pendal Group Ltd (ASX: PDL), a 39% premium to the previous share price.
Both companies have been aggressively expanding in order to offset growing outflows, with Perpetual buying Barrow Hanley and Trillium, whilst Pendal acquired JB Hambro.
The deal represents a $6.23 offer price, sending Pendal shares 18.1% higher, however, Perpetual shares were 6.6% lower on the news. Combined, the group would have over $225 billion in assets under management and potentially significant cost savings.
Magellan was an ancillary beneficiary with shares hitting a one month high, gaining 9.7% on news that may support further takeover and corporate activity in the struggling sector.
AUB on the lookout
Shares in insurance broker AUB Group Ltd (ASX: AUB) gained 1.9% after management confirmed it was in discussions with Odyssey Investment Partners for the potential purchase of UK insurance broker Tysers.
ASX 200 today
Looking ahead, the ASX 200 is expected to rise when the market opens this morning, following a positive lead from US stock markets overnight.