5:30 PM Sydney, Australia – ASX 200 index halted six-day losing streak following a rebound in New York. Domino''s Pizza Enterprises announced plans to acquire the largest pizza chain in Germany for $120 million. Healthcare stocks eased on fiscal year budget changes.
The Australian stock market staged a recovery on Wednesday as investors picked up bargains in widely traded resource stocks.
ASX 200 index rebounded more than 2% on the back of a rise in New York and Europe and oil price edged away from its five-year low.
Among the leaders in the resource sector, BHP Billiton jumped 5.59%, Rio Tinto advanced 3.02%, and Fortescue Metals gained 5.26%.
On the negative side, healthcare stocks led the decliners after the mid-year fiscal budget update released on Tuesday removed incentives for pathology services and reduced incentives for magnetic resonance imaging services.
Domino''s Pizza lifted its profit forecast for 2016 and announced plans to acquire Germany-based Joey''s Pizza chain for about $120 million.
DuluxGroup said net profit for the year will increase 7.9% to $124.7 million.
The Australian dollar slipped to 72.05 U.S. cents and trading turnover advanced to 995 million shares worth $6.1 billion.
At the market close, the ASX 200 Index soared 118.80 or 2.4% to 5,028.40, while the broader All Ordinaries Index jumped 114.80 to 5,078.70.
In commodities trading, gold was flat at US$1,064 an ounce and Brent crude future for immediate month delivery slid 9 cents to US$38.36 a barrel.
Absolute Equity Performance Fund Limited
jumped 4.5% to $1.15 after the investment company priced its stock at $1.10.
The stock opened and closed at $1.15.
Digimatic Group Limited
surged 97.5% to 39.5 cents after the marketing services provider priced its stock at 20 cents.
The stock opened at 33 cents and closed at 39.5 cents.
Australian Stock Movers
Domino''s Pizza Enterprises Limited
soared 8.3% to $53.44 after the pizza delivery company lifted its profit forecast for fiscal 2016.
Domino’s also announced plans to acquire Joey''s Pizza, the largest pizza chain in Germany with 212 outlets, for $120 million.
The Australian company will own two-thirds of the joint venture, while the remainder will be owned by the current operator based in the U.K., Domino''s Pizza Group.
closed unchanged at $6.31 after the paints and adhesive supplier said the outlook is positive and net profit for the year will increase 7.9% to $124.7 million and diluted earnings per share will jump 9.9%.
Flight Centre Travel Group Ltd
gained 2.7% to $35.10 after the leisure and travel retailer made a takeover bid for Travelonomy Limited the owner of StudentUniverse.com specializing in youth travel.
The deal is valued at $39 million, but the final deal price may increase if StudentUniverse.com achieves profit milestones in 2016.
Fonterra Co-operative Group Limited
gained 0.7% to $5.80 after the New Zealand milk and dairy products maker announced it will sell its Australian yoghurt and dairy dessert business to Parmalat Australia Pty Ltd.
The divestment includes manufacturing sites at Tamar Valley and Echuca, along with its Australian yoghurt and dairy dessert brands.
The transaction is expected to close in the first-half of the 2016.