Afternoon (PM) Market Report

Details

Published on Wednesday, 21 September 2016 07:00

The Australian market opened higher this morning, following a positive lead from Wall Street and rising crude oil prices overnight.

Wednesday, 21st September 2016

Local stocks consolidated on early gains in afternoon trading to finish at their intraday highs, with the major lenders leading the charge. All sectors performed positively, with only telecommunication services closing slightly lower. The Australian dollar appreciated against most major currencies.

The All Ordinaries added 32.10 points (0.59%) to 5,429.40 while the S&P/ASX 200 rose 36.00 points (0.68%) to 5,339.60.

Charter Hall Group announced that it has entered into an agreement to acquire a 50% tenants-in-common interest in the Melbourne office headquarters of Wesfarmers' subsidiary Coles, a long term occupant of the building which has recently signed a new 15-year lease expiring in 2030. The purchase was negotiated directly off market from Investa Office Fund, for a total purchase price of $140.5m. The remaining 50% interest in the property is owned by a private group. This acquisition is consistent with the Group's investment strategy to acquire high quality commercial real estate, on long leases to high quality covenants in core metropolitan markets and is likely to form part of a new or existing portfolio prior to settlement during the 2017 March quarter. CHC lifted 15 cents (2.87%) to $5.38. Investa Office Fund announced that it has entered into a conditional agreement in relation to the sale of its 50% share of 800 Toorak Road, Hawthorn East, Melbourne, for $140.5m. The sale is conditional on obtaining consent to the proposed purchaser from the owner of the remaining 50% share in the property. The sale is accretive to Net Tangible Assets and will reflect a 10.5% premium to the 30 June 2016 book value of $127.1m. The transaction is aligned with the Company's strategic objectives to sell non-core assets and takes advantage of continued strength in capital markets. The sale represents a net passing yield on current income of 5.45%. Subject to obtaining the consent referred to above, settlement is expected to occur in March 2017. IOF gained 7 cents (1.59%) to $4.48.

The NZX lost 27.28 points (-0.37%) to 7,281.17 while the Nikkei climbed 315.47 points (1.91%) to close at 16,807.62.

The Australian dollar was last quoted at 75.79 US cents.