Aust stocks close higher

By Elizabeth Redman

CMC chief market analyst Ric Spooner said although the market reaction to the announcement has been positive, "the devil is always in the detail". "The final analysis would depend on what price the demerger was struck at and what assets it included," Mr Spooner said. "But generally the market sees that this would be an opportunity to unlock some value from BHP assets. "A company which consists of only four or five pillars would have higher returns and would not be weighed down by some of the underperforming assets.

The Australian sharemarket has closed higher today as investors piled into resources stocks after indications BHP Billiton could announce a decision on a demerger as soon as next week. At the 4. 15pm (AEST) official market close, the benchmark S&P/ASX200 index gained 18 points, or 0. 32 per cent, to 5,566. 5, while the broader All Ordinaries index added 16. 7 points, or 0. 3 per cent, to 5,559. 6.

Read more here: Business Spectator


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