Stocks to watch on the Australian stock exchange early on Monday:

AKI – AFRICAN IRON LTD – steady at 56 cents

African Iron’s board recommends its shareholders accept Exxaro’s takeover offer.

HDF – HASTINGS DIVERSIFIED UTILITIES FUND – up one cent at $2.00

APA – APA GROUP – down eight cents at $4.53

Hastings Diversified Utilities Fund recommends securityholders reject APA’s offer.

IAG – INSURANCE AUSTRALIA GROUP LTD – up one cent at $2.96

QBE – QBE INSURANCE GROUP LTD – up nine cents at $11.29

SUN – SUNCORP GROUP LTD – up 18 cents at $8.33

WES – WESFARMERS LTD – down 13 cents at $30.24

The head of Wesfarmers’ insurance arm has defended the local industry in the face of premium rises of as much as 15 per cent for home insurance.

WBC – WESTPAC BANKING CORPORATION – up eight cents at $20.68

CBA – COMMONWEALTH BANK OF AUSTRALIA – up three cents at $49.83

NAB – NATIONAL AUSTRALIA BANK LTD – steady at 23.88

Westpac Banking Corporation says it plans an issue of covered bonds before long.

WOR – WORLEYPARSON LTD – up 66 cents at $27.76

WorleyParsons and its 50/50 joint venture partner in Indonesia have been awarded a $US180 million contract by oil and gas giant Chevron.