The Australian share market lost ground throughout the day to close 0.6 per cent lower. Most sectors ended in the red, the banks notching up the biggest losses ahead of the delivery of the Federal Budget this evening at 7.30pm.
The S&P/ASX200 Index closed 31 points lower at 4,726. On the futures market, the SPI is 45 points down.
Economic news: The Australia Bureau of Statistics has revealed a monthly trade surplus triple that of market forecasts, fueling speculation that the nation’s central bank may move to hike rates earlier that first thought. The ABS reports that the nation’s trade balance went into a $1.74 billion surplus in March, compared with a downwardly revised deficit of $87 million the month before.
Company news: Foster's Group Ltd’s (ASX:FGL) recently spun-off wine division, Treasury Wine Estates Ltd (ASX:TWE), today debuted on the Australian Securities Exchange at $3.21 per share, giving it a market value of just over $2 billion. Foster’s shareholders received one Treasury Wine Estates share for every three Foster’s shares they held, after approving the demerger of the company’s beer and wine businesses at the end of last month. Before the split shares in Foster’s closed at $5.48 yesterday, valuing Australia’s biggest brewer at $10.4 billion. Today shares in Foster's Group fell 17.34 per cent to close and $4.53, valuing the new business at around $8.8 billion.
Grange Resources Ltd (ASX:GRR) has advised that its Southdown Magnetite project in Western Australia will cost $2.57 billion to develop. Following the completion of a pre-feasibility study, the magnetite iron ore producer says a strong iron ore price outlook and net present value have given Grange confidence to take the project to the next stage. The definitive feasibility study is due for completion at the start of next year, with initial production forecast for 2014. Shares in Grange Resources slipped 0.75 per cent today and closed at $0.66.
Leighton Holdings Ltd’s (ASX:LEI) Middle Eastern arm, Al-Habtoor Leighton, has reportedly asked its former and long serving CEO Wal King to join its board, according to The Australian.
The Financial Times has reported that News Corporation (ASX:NWS) proposed takeover of British Sky Broadcasting is facing delays because of negotiations between News Corp and British regulators.
Shares in OneSteel Ltd (ASX:OST) fell 5.16 per cent after the steel maker downgraded its second half net profit guidance by around $30 million.
Shares in Nufarm Ltd (ASX:NUF) rose 5.24 per cent after news broke that its Managing Director, Doug Rathbone, has sold 4.5 million shares in the company to a major shareholder.
In the best and worst performers: The best performing sector was Telco Services with the index rising 6 to close at 1,008. The worst performing sector was Financials Excluding Real Estate Investment Trusts, falling 59 points to close at 5,197. The best performing stock in the S&P/ASX200 was Nufarm shares gained 5.24 per cent to close at $5.02. Shares in Mirabela Nickel and Spotless Group also closed higher today. The worst performing stock was Foster’s Group, after demerging today the new company fell 17.34 per cent to close at $4.53. Shares in Hastie Group and Energy World Corporation also closed in the red today.
Commodities: Gold is trading at $US1,507 an ounce. Light crude is down $2.14 cents at $US100.41 a barrel.
