After some heavy losses at the start of the week and a steady start to the day the Australian share market closed 0.5 per cent stronger today, lifted by gains among the retailers. For the week the local bourse was down 1 per cent and is almost 3 per cent lower for the month so far.
The S&P/ASX200 Index added 24 points to close at 4,684, while for the week it was 48 points lower. On the futures market, the SPI is up 21 points.
To the US and on Wall Street, the DOW Jones Industrial Average was down 109 points over the four trading days this week. The S&P 500 Index was down 8 point, NASDAQ was down 20 and the 100 Index was down 26.
Company news: Australia’s big four banks are gearing up to cut wholesale term debt borrowings by a third, to levels not seen since the global financial crises. Sources have told Reuters that the big four, Commonwealth Bank of Australia (ASX:CBA), Westpac Banking Corporation Ltd (ASX:WBC), ANZ Banking Group (ASX:ANZ) and National Australia Bank Ltd (ASX:NAB) will only raise around $US100 billion this year, down from $US150 billion the year before. Also making news today, anti-corruption agency Global Witness has revealed that a Gaddafi regime sovereign wealth fund held $US30 million bonds from Commonwealth Bank and National Australia Bank as at 30 June 2010. Shares in Commonwealth Bank rose today, ending 1.13 per cent higher at $50.97.
Myer Holdings Ltd’s (ASX:MYR) CEO Bernie Brookes has hosed down talk that his time in the top job could be up when his contract expires next year. Despite the retailers share price sagging 30 per cent since its initial public offering in 2009, Mr Brooks has confirmed that he is in discussions to finalise a contract extension. Mr Brooks today described the current retail environment as the worst in up to 30 years but said there are some early signs of recovery. Shares in Myer ended the day 0.35 per cent firmer at $2.87.
Suncorp Group’s (ASX:SUN) CEO Patrick Snowball has rejected a proposal to have all Australians automatically covered for floods. The chief of Queensland’s biggest insurer says the responsibility lies with insurers and their customers to sort out flood cover.
Cochlear Ltd (ASX:COH) CEO Chris Roberts has warned that a strong Australian dollar may cut into its profits. In February the hearing implant company posted a 16 per cent improvement in first half net profit, coming it at $87 million.
Best and worst performers, all closed in positive territory. Up the top was Consumer Discretionary, rising 13 points to close at 1,419. The sector with the smallest gains was Financials Excluding Real Estate Investment Trusts, adding 14 points to close at 5,022 points. The best performing stock in the S&P/ASX200 was Energy Resources of Australia shares gained 5.16 per cent to close at $4.89. Shares in Billabong International and Wotif.com Holdings ended the week higher. The worst performing stock was PaperlinX, easing 2.94 per cent to close at $0.165. Shares in Perpetual and Telecom Corporation of New Zealand also closed lower today.
Commodities: Gold is trading at $US1,525 an ounce, and is up $14.05 on the week. Light crude is up 39 cents at $US100.62 a barrel.
The Australian dollar is trading at $US1.0692 cents, and is up slightly on the week.
