Today has seen a number of S&P/ASX 200 Index (ASX: XJO) shares jump in value by as much as 16% in trading so far. The share market opened stronger today following the fourth straight day of gains on Wall Street. Earlier in the week, the Reserve Bank of Australia announced it was dropping rates to 0.1%, and indicated they would likely remain at around these levels for up to three years. Furthermore, last night United States Federal Reserve chair, Jerome Powell, signalled that US interest rates would be kept near zero and that bond buying would continue at the current price. Let’s take a look at some highlights of today’s share price moves.
ASX 200 share price rises
ASX 200 gold mines
Gold mining companies have seen a solid day of trading so far. Continuing low interest rates have caused a number of ASX 200 resources companies to see strong improvements in share price.
For example, Saracen Mineral Holdings Limited (ASX: SAR) is up by 6.72% at the time of writing, and merger partner, Northern Star Resources Ltd (ASX: NST) has seen its share price rise by 6.93%. Moreover, mid cap ASX 200 resources companies have also seen share price gains. For example, St Barbara Ltd (ASX: SBM) has risen by 7.92%. In addition, we have also seen the Gold Road Resources Ltd (ASX: GOR) share price rally by 6.67%.
The big news in takeovers today has been a story of two private equity firms circling Tabcorp Holdings Limited (ASX: TAH). In trading so far today, the Tabcorp share price has risen by 16.1%. Reported by The Australian, the deal is rumoured to be worth up to $9 billion. The betting business of this ASX 200 company is also the target of a separate private equity firm in a deal being valued at $3 billion.
Investors Mutual chief, Anton Tagliaferro, holds approximately 3% of Tabcorp and is likely to be happy with the share price movements given his agitation for change earlier in the year.
The Treasury Wine Estates Ltd (ASX: TWE) share price has shot up by 8.11% at the time of writing. This followed an upgrade from Citigroup Inc (NYSE: C) from ‘hold’ to ‘buy’. However, the company also provided a ‘high risk’ warning based on threats from China. Unsaid in all of the hype over Chinese trade issues is that Treasury saw its sales in China rise by approximately 25% in the first quarter of FY21 compared to the prior corresponding period.
The ASX 200 company has also paused its divestment of the valuable Penfolds brand in the US. Choosing instead to trade through the pandemic, deal with the Chinese dumping accusations, and restructure the US business.