MARKET TALK: Alumina Up 4.0% On Alcoa's Bid For Alcan

Alumina (AWC.AU) up 4.0% at A$7.63, hits 4-week high of A$7.74 on Alcoa's US$26.9 billion bid for Alcan. Alumina says deal could deliver significant benefits to AWAC. Notes AWAC agreements provide for AWAC to be exclusive vehicle for pursuit of Alcoa's and Alumina interests in bauxite and alumina businesses and that Alcan has similar assets. But Alcoa bid for Alcan also means Alcoa unlikely to bid for Alumina. Expect AWC rally to fade as other resource majors undergo trading correction. Resistance A$7.78, support A$7.03.