Despite strong offshore leads the Australian share market drifted throughout the session to end just 0.2 per cent higher. Traders remained cautious ahead of tomorrow’s monthly interest rate decision from the Reserve Bank of Australia amid expectations rates could again drop to a new record low. Across the sectors the financials weighed after Westpac Banking Corporation’s
(ASX:WBC) results disappointed while the miners charged ahead.
Figures
The S&P/ASX 200 index closed 13 points higher at 5,828.
The value of trades was $5.3 billion on volume of 651 million shares at the close of trade.
The top three stocks by value were Westpac Banking Corporation
(ASX:WBC), BHP Billiton Limited
(ASX:BHP) and ANZ Banking Group
(ASX:ANZ).
On the futures market the SPI is 13 points higher.
Economic news
The Australian Bureau of Statistics has reported building approvals climbed by 2.8 per cent in March. House approvals gained 0.5 per cent while apartment approvals jumped 5.3 per cent.
ANZ Banking Group’s
(ASX:ANZ) job advertisements series for April shows job ads increased 2.3 per cent last month, representing the 10th rise in 11 months.
The TD Securities-Melbourne Institute's monthly inflation gauge has firmed 0.3 per cent in March and is now 1.4 per cent higher over the year.
Company news
MYOB Group Limited
(ASX:MYO) returned to the Australian Securities Exchange today and ended its first day of trade with a market capitalisation of $2.3 billion. The company name stands for 'Mind Your Own Business' and the group provides accounting software solutions to businesses and accounting practices in Australia and New Zealand. Shares in MYOB Group listed with an issue price of $3.65, opened at $3.91 and a closed at $3.89.
Shares in Westpac Banking Corporation
(ASX:WBC) fell after posting flat cash earnings of $3.77 billion for the first half of the 2015 financial year. Australia’s second biggest bank says the result was impacted by one-off costs including an $85 million charge relating to derivative valuations. Shares in Westpac Banking Corporation fell 3.08 per cent to end the session at $35.60.
Property developer Stockland
(ASX:SGP) has confirmed it is on track to deliver improved earnings over the 2015 financial year and noted strong momentum going into the following financial year.
Gambling and entertainment group Tabcorp Holdings
(ASX:TAH) has improved its revenue by 3 per cent in the third quarter due to strength in its wagering and media business.
Software provider Integrated Research Limited
(ASX:IRI) will pay up to $US5 million to buy a US based communications testing business called IQ Services.
Engineering firm WorleyParsons Limited
(ASX:WOR) has cut more than 2,000 jobs and flagged $125 million in write-downs as it battles against falling commodity prices.
Best and worst performers
The best performing sector was materials, adding 2.4 per cent to close at 9,701.
The worst performing sector was financials excluding real estate investment trusts, losing 1.5 per cent to close at 7,754 points.
The best performing stock in the S&P/ASX 200 was Arrium Limited
(ASX:ARI), rising 8.33 per cent to close at $0.20. Shares in BlueScope Steel Limited
(ASX:BSL) and Regis Healthcare Limited
(ASX:REG) also closed higher.
The worst performing stock was WorleyParsons Limited
(ASX:WOR), dropping 9.61 per cent to close at $10.35. Shares in MMA Offshore Limited
(ASX:MRM) and STW Communications Group Limited
(ASX:SGN) also closed lower.
Commodities
Gold is buying $US1,185 an ounce.
Light crude is $0.48 lower at $US59.15 a barrel.
Currencies
The Australian dollar is buying $US0.784.
That is the Market Wrap on Monday May 4, 2015. I’m Lelde Smits and thank you for joining me on the Finance News Network.
