PERTH: The Australian sharemarket has improved further at noon, as speculation Woolworths could be a takeover target drives the consumer staples sector higher.
At 12.05pm (AEDT), the benchmark S & P/ASX200 index was up 13.2 points, or 0.25 per cent at 5269.3, and the broader All Ordinaries index was lifted 14.6 points, or 0.28 per cent, at 5320.1.
The benchmark had opened a slight 0.04 per cent stronger as resource stocks weighed following weaker overnight commodity prices, including another decline in the iron ore price which saw it touch its second-lowest level for the year. BHP Billiton was down more than 2 per cent across the morning with peer Rio Tinto off more than 1 per cent.
But reports that private equity giants had approached Woolworths’ board about a potential $30 billion takeover bid saw the supermarket giant more than 3 per cent stronger across the morning. Peer Wesfarmers was up more than 1 per cent while Metcash was up nearly 2 per cent.
In other equities news, embattled education provider Vocation sought an extension of its trading halt after it said it needed more time to finalise a critical capital raising while investment bank Macquarie Group announced a $400 million capital raising through a notes offer.
Meanwhile, fresh figures showed spending growth is staying at solid levels in the lead-up to Christmas.
In October, spending rose 0.5 per cent, slower than the bumper 3.3 per cent increase in September, the Commonwealth Bank’s seasonally adjusted business sales indicator showed. But the annual sales growth rate of 7.4 per cent was still above the long-term trend.
Consumer staples were up 1.69 per cent as a sector.
Woolworths was up 2.99 per cent to $24.42, Wesfarmers gained 1.26 per cent to $39.50 and Metcash lifted 1.91 per cent to $1.335.
