The Australian sharemarket has recouped most of the morning’s losses to finish the day flat.
Today, the S&P/ASX 200 index fell 3 points to finish at 4,334. On the futures market, the SPI is currently 6 points higher.
Economic news
The balance on goods and services was a deficit of $480 million in February, seasonally adjusted reports the Australian Bureau of Statistics.
And the Australian Industry Group/Commonwealth Bank Australian Performance of Services Index (PSI) rose 0.3 points to 47.0 points in March. A reading below 50 indicates contraction.
Company news
Australia and New Zealand Banking Group (ASX:ANZ) chief Phil Chronican says the supposed link between interest rates set by the Reserve Bank and the rates set by banks is a myth that must be busted. He said the link had been made in the early nineties during a period of extended stability and the banks let the idea continue because it saved them the trouble of having to explain why home loan rates were going up and down – they just blamed it on the RBA. ANZ shares closed 0.09 per cent higher at $23.01.
The ACCC has told AGL Energy Limited (ASX:AGK) the clearance for its acquisition of the Loy Yang power station and adjacent coal mine would be suspended until further information has been received. AGL owns 32.5 per cent of Loy Yang and requires the competition watchdog to remove Federal Court undertakings which limit AGL’s ownership to 35 per cent. AGL shares closed flat at $14.83.
James Murdoch resigns as BSkyB chairman, News Corporation (ASX:NWS) is the pay-TV broadcaster’s largest shareholder.
Seven West Media Limited (ASX:SWM), owner of Seven Television and West Australian newspapers withdraws from the Australian Press Council. The company says it’s setting up an alternative.
QBE Insurance Group Limited (ASX:QBE) expects overall average premium rate increases in 2012 to be in excess of 7 per cent.
BIS Shrapnel says BHP Billiton Limited’s (ASX:BHP) Olympic Dam expansion could transform South Australia.
Best and worst performers
The best performing sector was Health Care adding 131 points to close at 8,799.
The worst performing sector was Materials, losing 127 points to close at 10,969 points.
The best performing stock in the S&P/ASX 200 was Ardent Leisure Group, rising 7.3 per cent to close at $1.25. Shares in QBE Insurance Group and Aristocrat Leisure also closed higher.
The worst performing stock was Transfield Services, dropping 11.65 per cent to close at $2.20. Shares in David Jones and Resolute Mining also closed lower.
Commodities
Gold is trading at $US1,644 an ounce. Light crude is $0.43 lower at $US103.58 a barrel. The Australian dollar is buying $US1.0288.
