Takeover boosts share

 News of a massive takeover offer for energy firm Santos has helped lift the share market.

Santos has rejected the A$7.1 billion proposal from overseas fund manager Scepter Partners, but its shares soared in the news, along with others in the energy sector.

Commonwealth Bank’s interest rate hike late in the session also boosted the banking sector, Bell Direct equities analyst Julia Lee said.

“There is a lot of positive sentiment in the oil and gas space despite a fall in oil prices, and there’s been a turnaround in financial stocks after CBA’s announcement,” she said.

Santos shares surged 16 per cent, adding 88 cents to $6.32, while Origin Energy gained 32 cents to A$5.92 and Woodside was 12 cents higher at $7.44.

Lee said the chances of a Reserve Bank rate cut have increased after CBA’s decision to lift standard variable rates for owner occupiers by 0.15 percentage points. – APP