MELBOURNE - Australian stocks finished 0.2 per cent higher on Thursday as strength in Computershare and big miners offset heavy selling in media giant News Corp NCP.AX ahead of its expected removal from the local benchmark index.
The benchmark S&P/ASX 200 inched up 5.8 points to end at 3,705.9, but would
have posted twice the gain if not for a 2 per cent fall in News Corp and a 1.9 per cent fall in its preferred stock.
The selling was spurred by investors with holdings tied to the index, as News Corp will be removed from the S&P/ASX 200 if shareholders vote next Tuesday to approve Rupert Murdoch's plan to reincorporate the company in the United States.
"If you think the vote's going to get up, you would be anticipating index-related selling. The latest indications are that that's likely to go ahead," said Nomura Australia equities strategist Eric Betts.
News Corp's fall was partly offset by top global miners BHP Billiton and Rio Tinto, which both rebounded about 1 per cent after dropping on Wednesday.
Australia's largest listed gold miner Newcrest finished 6.4 per cent higher at A$16.66, after surging to a 17-year high of A$16.70 on fresh takeover speculation in the gold industry following South African Harmony Gold's bid for Gold Fields to create the world's biggest gold company.
"Consolidation dreams are in investors' minds at the moment," said Betts.
The top gainer was share registry group Computershare, following its $292 million acquisition of the second-largest US share registrar, EquiServ.
Its shares soared 25 per cent to close at A$5.25, their highest close since January 2002. Nearly 21 million shares traded, the heaviest activity in the stock in 19 months.
"It is certainly a strong, positive strategic move," said fund manager Ausbil Dexia's managing director, Paul Xiradis.
Investors gave a thumbs down to Macquarie Goodman Management's A$4.4 billion plan to merge with the property trust it manages, Macquarie Goodman Industrial Trust, sending MGM shares down 13.3 per cent to A$3.47. MGI units slipped roughly in line with the merger ratio, falling 4 per cent to A$1.94.
Bill Express, Australia's second-largest bill payment network, formerly called DialTime, rocketed on its first day on the exchange to finish 38 per cent above its issue price of 20 cents. That gave it a market value of A$89 million
<i>Australian stocks:</i> Computershare, miners prop up stocks
MELBOURNE - Australian stocks finished 0.2 per cent higher on Thursday as strength in Computershare and big miners offset heavy selling in media giant News Corp NCP.AX ahead of its expected removal from the local benchmark index.
The benchmark S&P/ASX 200 inched up 5.8 points to end at 3,705.9, but would
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