Despite weak offshore leads, the Australian share market opened slightly higher, dipped in afternoon trade before closing almost where it started.
Today, the S&P/ASX 200 index closed 7 points down to finish at 4,429. On the futures market, the SPI is currently 4 points down.
Economic news
The Housing Industry Association: Quarterly Trades Report revealed the rates charged by traders rose 1.4 per cent in the March quarter, a 1.6 per cent increase to the same period last year. The figures also showed five housing trades were undersupplied including bricklaying and plumbing due to a structural shortage of skilled labour within the residential construction industry.
Australian Industry Group and Commonwealth Bank of Australia (ASX:CBA) have reported the Australian services sector has contracted in April. The Performance of Services Index (PSI) dropped 7.4 points to 39.6. A read below 50 indicates contraction. The PSI was 47.0 in March.
Company news
Oil and gas explorer Eureka Energy Limited (ASX:EKA) has recommended its shareholders do not accept the takeover bid from Aurora Oil & Gas Limited (ASX:AUT) made on Monday. The unconditional takeover offer of $0.45 per share values Eureka at about $107 million, but Eureka’s board says it is an opportunistic bid that undervalues the company. Shares in Eureka Energy closed 3.06 per cent up at $0.51.
The High Court has found seven directors of building group James Hardie Industries (ASX:JHX) in breach of their directorial duties. The court found the directors approved a misleading statement to the market 11 years ago. Shares in James Hardie closed 0.13 per cent up at $7.53.
Commonwealth Bank of Australia (ASX:CBA) will be reducing its mortgage rates by 40 basis points to a standard variable rate of 7.01 per cent. The decision will take effect on May 11.
News Corp (ASX:NWS) is reportedly looking to increase its stake in Foxtel and eyeing James Packer’s 25 per cent interest for $1 billion.
Westpac Banking Corporation (ASX:WBC) has reported a 25 per cent fall in its first-half net profit. However its cash profit, the bank’s preferred measure of profitability, gained 1 per cent to $3.19 billion.
Singapore Telecommunications Limited (ASX:SGT) has unveiled a major restructure of its Australia arm Optus, that will cost $37 million.
Best and worst performers
The best performing sector was Consumer Staples adding 31 points to close at 7,818.
The worst performing sector was Utilities, losing 49 points to close at 4,749.
The best performing stock in the S&PASX 200 was Energy Resources of Australia Limited (ASX:ERA) rising 10.3 per cent to close at $1.82. Shares in Virgin Australia Holdings and Dart Energy also closed higher.
The worst performing stock was Energy World Corporation Limited (ASX:EWC) dropping 12.5 per cent to close at $0.49. Shares in Coal Spur and Iress Market Technology also closed lower.
IPO
Eumeralla Resources Limited (ASX:EUM) floated today with an issue price of $0.20 and an opening and closing price of $0.23.
Commodities
Gold is trading at $US1,647 an ounce.
Light crude is $0.94 down at $US105.22 a barrel.
The Australian Dollar
The Australian dollar is buying $US1.0311.
