It was a rocky start to the week for the Australian share market. After positive leads stocks opened steady, but fell to a one month low as the Australian dollar jumped to a new record of 110 US cents. By mid afternoon reports of Osama bin Laden’s death sent local stocks into recovery mode, finishing the first day of the week just slightly higher. The Aussie dollar however pulled back, while the price of oil, silver and gold all retreated.
The S&P/ASX200 Index closed 2 points higher at 4,825. On the futures market, the SPI is 10 point higher.
Economic news: The Australian Bureau of Statistics has reported that home price in eight capital cities fell more than expected in the March quarter and the most since the global financial crises, dropping 1.7 per cent from the quarter before. Declines were led by Melbourne and Brisbane.
The TD Securities monthly inflation gauge showed a slight easing of inflation pressures last month. The measure of consumer prices lifted 0.3 per cent in April halving from a rise of 0.6 per cent in March. The drop was aided by a 12 per cent fall in fruit and vegetable prices.
Company news: Virgin Blue Holdings Ltd (ASX:VBA) has hiked fuel surcharges on international and domestic flights as it battles against the rising price of oil. CEO John Borghetti has told The Australian that the changes will only go some way to recovering the airlines fuel costs in this environment. The paper also reports that Virgin has today expanded its codeshare agreement with Delta Air Lines, ahead of Virgin’s new branding to be unveiled on Wednesday. Shares in Virgin Blue ended the day flat to close at $0.285.
The battle between two supermarket giants has moved to the hardware floor, with Woolworths Ltd (ASX:WOW) announcing its new hardware chain will be known as “Masters”. Woolworths, together with joint venture partner Lowe's Companies Inc, will go head to head with Wesfarmers Ltd (ASX:WES) $6 billion a year Bunnings hardware chain. Masters CEO Don Stallings says the new business is on track to deliver an initial 150 sites in five years. Shares in Woolworths ended the day flat to close at $26.51.
Uranium explorer Extract Resources Ltd (ASX:EXT) has entered a trading halt, it says, related to a possible cash offer for its 42.76 per cent shareholder, Kalahari Minerals Plc, by China's CGNPC Uranium Resources Ltd.
GPT Group (ASX:GPT) has advised that it will pay a 4.2 cent distribution per stapled security for the March quarter. The property trust has also confirmed that it is on track to achieve operating income growth of one percentage point over the 2011 inflation rate.
Explosives maker Orica Ltd (ASX:ORI) has reported a better than expected 5 per cent rise in first-half profit, and, reaffirmed its full-year guidance for an improved profit result.
Rail and ports operator Asciano Ltd (ASX:AIO) is expecting earnings before interest and tax expected to grow by around 22 per cent to between $530 million to $540 million.
In the best and worst performers: The best performing sector was Health Care with the index adding 59 to close at 8,803. The worst performing sector was Telco Services, losing 10 points to close at 985. The best performing stock in the S&P/ASX200 was Hastie Group shares rose 13.16 per cent to close at $0.215. Shares in Aristocrat Leisure and Ardent Leisure also closed in positive territory today. The worst performing stock was Aquila Resources, shedding 4.3 per cent to close at $8.69. Shares in Beach Energy and Carnarvon Petroleum also closed in the red today.
In commodities: Gold is trading at $US1,559 an ounce. Light crude is up down $1.73 cents at $US112.20 a barrel.
