Banks, energy stocks help lift Australian shares

By Reuters News

By Anjali Singh

Oct 19 (Reuters) - Australian shares ended higher on Monday, lifted by strength in financial and energy stocks, while a wave of takeover activity helped the benchmark extend gains for a second consecutive session.

The benchmark S&P/ASX 200 index .AXJO closed 0.4% higher at 8,845.70 points, its highest level since September 9. The index closed 1% higher on Friday.

Energy stocks .AXEJ climbed as much as 2.2% to their highest level since mid-September, led by a 6.4% jump in New Hope NHC.AX after the coal miner agreed to acquire unlisted Malabar Resources in a deal valued at about A$2.4 billion ($1.67 billion).

Shares of sector majors Santos STO.AX and Woodside Energy WDS.AX rose 2.3% and 2.7%, respectively.

Financials .AXFJ advanced 0.9%, led by Challenger CGF.AX after the investment manager said it had received a takeover proposal from a unit of Japan's Daiichi Life Holdings 8750.T for the shares it does not already own.

The proposal valued Challenger at about A$7.94 billion, helping its shares surge 19.3% to end at an eight-year-high.

Shares of the 'Big Four' banks rose between 0.7% and 1.5%.

Meanwhile, data on Thursday showed a surprise fall in August employment, which led the market to trim its expectations of a rate hike by the Reserve Bank of Australia in November, though a hike is still expected over the next few months. 0#AUDIRPR

"While lower rate expectations provide near-term support, valuation and net interest margin risks remain after the recent run, particularly if the next inflation data reintroduces the possibility of further tightening," said Tim Waterer, chief market analyst at KCM Trade.

Among other takeover deals, Cleanaway Waste Management CWY.AX jumped 20.2%, after agreeing to an A$9.3 billion takeover by Swedish private equity group EQT EQTAB.ST.

FleetPartners FPR.AX surged 7.1% after agreeing to an A$1.13 billion buyout by Pacific Equity Partners-backed SG Fleet.

Capping gains, technology stocks .AXIJ lost 1.3%, mirroring weakness in US peers amid concerns that debt-laden AI infrastructure companies may not turn profits in time to repay their debts. .N

New Zealand's benchmark S&P/NZX 50 index .NZ50 fell 0.7% to 13,652.07 points.

($1 = 1.4343 Australian dollars)

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