5:30 PM Sydney – Australian markets braved higher on the back of a sixth day rally in oil prices and gold extended seven day advance to 5%. Chevron agreed to sell its 50% stake in Caltex after 40 years as the U.S.-based oil explorer retrenches from refining businesses.
Stocks in Sydney closed higher despite weak market indexes in New York and Europe.
Resource stocks led the gainers after oil price extended rally for the sixth day and gold jumped 5% after an advance for the seventh session in a row.
Australian dollar closed at 77.98 U.S. cents and in stock trading turnover rose to 766 million shares worth $7.2 billion.
ASX 200 Index gained 40.80 or 0.7% to 5,919.90 and broader All Ordinaries Index jumped 39.20 to 5,888.90. For the week, ASX slipped 1%.
In commodities trading, gold increased US$3 to US$1,203 an ounce and Brent crude jumped 92 cents to close at US$58.27 a barrel.
In international markets, Shanghai Composite Index gained and extended the advance in four months to 47% after economists estimated that the second largest economy is likely to meet its 7% annual economic growth target.
Sky Dive the Beach Group Limited
, the adventure sports and skydiving services provider priced its stock at 25 cents, opened at 31 cents and a closed at 39 cents.
Australian Stock Movers
Caltex Australia Limited
rose 0.9% to $37.88 after the U.S.-based petroleum refiner Chevron Corporation plans to divest its entire stake of 50% in the company for about $4.6 billion or US$3.58 billion, after nearly 40 years.
Chevron offered 135 million shares in Caltex at a floor price of $34.20 or US$26.65 per share, this represents discount of 9.7% on today’s closing price.
Telstra Corporation Ltd
gained 1.3% to $6.38 after the communications and information services provider plans to acquire the U.K.-based health analytics company Dr. Foster, for an estimated value of $40 million to $50 million.
slipped 1.3% to 76 cents after the construction and mining services provider finalized the service contract worth $50 million for the delivery of the new Queensland State Velodrome in Brisbane.
Construction is due to be completed by mid-2016.