The Australian share market finished today flat following an eventful week for the local and global financial markets. After jumping 2.5 per cent yesterday, following a technical glitch that froze trade on the ASX Limited (ASX:ASX), optimism over Europe’s plan to tackle debt saw equities extend gains this morning, before retreating to close just a little above where we started.
The S&P/ASX200 Index today added 5 points to finish at 4,353. For the week the index gained 211 points, the largest weekly gain in more than two years. On the futures market the SPI is 9 points lower.
Wall Street: Over the four trading days this week: The Dow Jones Industrial Average was 400 points higher. The S&P 500 Index was 46 points higher, the Nasdaq was 101 points higher and the 100 Index was 64 points higher.
Company news
Macquarie Group Limited (ASX:MQG) has cut its full year forecast after reporting a 24 per cent drop in first half profit. The investment bank also today announced a management shake-up and launched an $800 million on-market share buyback of up to 10 per cent of its shares. Macquarie says, assuming market conditions remain unchanged, its fiscal 2012 result is expected to fall from its last years result of $956 million. Shares in Macquarie Group gained 3.29 per cent today, closing at $25.15.
Qantas Airways Limited (ASX:QAN) today revealed ongoing industrial action has already cost the airline $68 million and is continuing to cut around $15 million into revenue per week. Since August more than 70,000 passengers have been impacted by the industrial action resulting in 129 cancelled and 387 delayed flights. Speaking at the company’s annual general meeting today CEO Alan Joyce also said Qantas cannot provide guidance for the full year due to current market volatility. Shares in Qantas Airways closed 1.59 per cent lower at $1.545.
Santos Limited's (ASX:STO) takeover of Eastern Star Gas Limited (ASX:ESG), worth in excess of $700 million, has been approved by the coal seam gas explorer’s shareholders. Despite some opposition from minority shareholders in the lead up the vote 94 per cent of shares backed the scrip-based deal. Santos also today announced it has inked a deal to sell its 40 per cent stake in the Evans Shoal gas field offshore northern Australia for up to $US350 million.
Whitehaven Coal Limited (ASX:WHC) has posted a 24 per cent increase in its first quarter coal production, underpinning a 17 per cent increase in sales.
Best and worst performers
The best performing sector was Consumer Discretionary, adding 8 points to close at 1,285. The worst performing sector was Health Care, losing 141 points to close at 7,718 points. The best performing stock in the S&P/ASX200 was Energy World Corporation, shares advanced 10.78 per cent to close at $0.565. Shares in Fairfax Media and Aquila Resources also finished stronger today. The worst performing stock was Mesoblast, dropping 10.11 per cent to close at $8.45. Shares in OM Holdings and Harvey Normal Holdings also fell today.
Commodities
Gold is trading at $US1,746 an ounce and rose by $106 over the week.
Light crude is down $0.33 to $US93.63 a barrel.
Australian dollar
The Australian dollar is buying $US1.0672 cents and has gained $0.03 over the week.
