A strong end to the week, the Australian share market clawing back some of the week’s losses. The agreement by G7 nations to intervene and weaken a soaring Japanese yen helped to stabilise the local market.
The S&P/ASX200 Index rose 71 points to close at 4,626 while on the week it was down 18 points. On the futures market, the SPI is up 97 points.
Looking to the US and on Wall Street, the DOW Jones Industrial Average was down 270 points over the four trading days this week. The S&P 500 Index was down 31 points, NASDAQ was down 80 and the 100 Index was down 74.
Economic news: The Group of Seven agreed to jointly intervene in the currency market to stem the sharp yen rise. The United States, Britain, Canada and the European Central Bank have agreed with Japan to jointly intervene in the currency market.
Company news: Rio Tinto Ltd (ASX:RIO) has received acceptance for more than 33 per cent of shares in its $US3.9 billion takeover target Riversdale Mining Ltd (ASX:RIV). The offer is conditional on Rio reaching 50.1 per cent control by March 23. In an effort to entice shareholders to take up the offer the global mining giant lifted the bid from $16 to $16.50 per share last week. Shares in Rio Tinto rose 1.64 per cent to close at $80.50.
Fletcher Building Ltd (Australia) (ASX:FBU) has announced it has an interest in approximately 62% of the shares in Crane Group Ltd (ASX:CRG). Yesterday Fletcher Building said its takeover offer had become unconditional. Two Fletcher Building executives have been appointed directors of Crane Group and three Crane Group directors have now resigned.
Shares in Fletcher Building dropped 0.78 per cent to close at $6.38.
Taking a look at other news: Orica Ltd’s (ASX:ORI) potential bid for Burrup Fertilisers lacks rationale, according to UBS analysts. Unless Orica fixes its lazy balance sheet, it could be a target from private equity, analysts say.
Gowing Bros. Ltd (ASX:GOW) has reported its half year results. Net profit after tax and net profit attributable to members increased more than 26 per cent to $3.9 million from $3.1 million the prior corresponding period. A 5.5 cent fully franked ordinary dividend is payable on April 21.
In the best and worst performers: The best performing sector today was Energy gaining 515 points to close at 16,261. The worst performing sector was Telco Services falling 4 points to close at 902. The best performing stock in the S&P/ASX200 was Infigen Energy shares jumped 18.33 per cent to close at $0.355. Shares in Regis Resources Ltd and Gunns Ltd also closed in positive territory today. The worst performing stock was Ramsay Health Care Ltd, shedding 6.09 per cent to close at $16.50. Shares in Platinum Asset Management Ltd and SMS Management & Technology Ltd also closed weaker today.
In commodities, gold is trading at $US1,410 an ounce and is down $6.04 on the week. Light crude is up $1.79 at $US103.21 a barrel.
The Australian dollar is trading at 99.42 US cents, and is down 0.02 cents on the week.
