The Australian share market has ended a volatile week 15 points higher after recovering more than 1 per cent today. The week’s market movements were defined by Europe’s unfolding debt crisis, highlighted by the resignations of both Greece and Italy’s prime ministers. Today’s gains were across the board led by industrials, health and energy stocks.
Figures
The S&P/ASX200 Index gained 52 points to finish at 4,297. Over the week the index added 15 points. On the futures market, the SPI is 44 points higher.
Wall Street, over its four trading days this week: The Dow Jones Industrial Average was 89 points lower. The S&P 500 Index was 14 points lower, Nasdaq was 61 points lower, and the 100 Index was 44 points lower.
Economic news
The European Union this week cut its forecast for growth for its 27 member nations and warned of the risk of a deep and prolonged recession. The union’s economy is now expected to grow by 0.5 per cent in 2012, sharply lower from 1.8 per cent, forecast earlier this year. Next year the eurozone’s sovereign debt levels are expected to climb to 90.4 per cent of overall gross domestic product.
Company news
Shares Fairfax Media Limited (ASX:FXJ) slumped to the worst performer of the S&P/ASX200 today one day after a member of the company’s founding family, John B Fairfax, offloaded his final 9.7 per cent stake for more than $190 million. Mr Fairfax said the decision to sell was not an easy one but made in order to achieve a more balanced and diversified investment portfolio. Shares Fairfax Media slumped 7.03 per cent today, closing at $0.86.
Shares in oOHMedia Group Limited (ASX:OOH) jumped today after the outdoor advertising company’s suitor, CHAMP Private Equity, appeared to have purchased an extra 8 per cent interest. The move comes just one day after oOhMedia announced it had received an indicative and highly conditional proposal from CHAMP to acquire the company for 32 cents per share. Shares in oOHMedia Group finished the week 7.41 per cent higher at $0.29.
Leighton Holdings Limited (ASX:LEI) has posted a 30 per cent rise in first quarter revenue and says it is on track to deliver an annual profit of up to $650 million.
ANZ Banking Group’s (ASX:ANZ) CEO Mike Smith took home $10 million in the last financial year, coming in just above Westpac Banking Corporation’s (ASX:WBC) CEO, Gail Kelly who received $9.9 million. Both earned more than Commonwealth Bank of Australia’s (ASX:CBA) outgoing CEO Ralf Norris who’s pay last year halved to $8.6 million.
Best and worst performers
All sectors rallied: The best performing sector was Industrials, advancing 69 points to close at 3,439. The sector with the smallest gains was Telco Services, adding 10 points to close at 1,076 points.
The best performing stock in the S&P/ASX200 was Mesoblast, shares rose 6.67 per cent to close at $8.00. Shares in Karoon Gas Australia and Macmahon Holdings also finished stronger.
The worst performing stock was Fairfax Media, dropping 7.03 per cent to close at $0.86. Shares in White Energy Company and Gunns also fell today.
IPOs
MinRex Resources NL (ASX:MRR) started trading today at 20 cents, which was also its issue price. The precious and base metals explorer finished the day $0.005 cents or 2.5 per cent higher at $0.205.
Commodities
Gold is trading at $US1,766 an ounce and fell by $13.00 over the week.
Light crude is $0.40 higher at $US98.18 a barrel.
The Australian dollar
The Australian dollar is buying $US1.0158 cents and lost $0.0215 over the week.
