The Australian share market has ended the day in the red, but made gains for the week. Australia’s central bank has added to investor concerns the global economy is slowing, downgrading its growth outlook.
Figures
Today, the S&P/ASX 200 index lost 33 points, or 0.7 per cent, finishing the week 34 points higher at 4,396. On the futures market, the SPI is currently 35 points weaker.
Looking at Wall Street, over its four trading days this week: The Dow Jones Industrial Average added 2 points. The S&P 500 Index fell 8 points, the Nasdaq lost 26 points, and the 100 Index fell 21 points.
Economic news
The Reserve Bank has released its quarterly statement on monetary policy. The RBA says it expects the domestic economy to grow by about 3 per cent over 2012 and 2013. And data for the March quarter indicate that year-ended underlying inflation fell to around 2 to 2.25 per cent. Inflation is expected to remain close to this rate over the next year.
And it’s been a busy month for China’s services sector, HSBC China Services Purchasing Managers Index (PMI) rose to 54.1 in April from 53.3 in March, that’s its strongest reading in half a year.
Company news
Westpac Banking Corporation
(ASX:WBC) has lowered its home loan rates by 37 basis points, less than the Reserve Bank’s official cash rate cut of 50 basis points. The bank’s standard variable mortgage rate is now 7.09 per cent. The cut will be effective from May 14. The bank says the reduced rate could save homeowners with an average mortgage of $300,000, $900 a year. Yesterday Westpac reported half year cash earnings of $3.2 billion. Westpac shares ended flat, closing at $22.91.
Consolidated Media Holdings Limited
(ASX:CMJ) has responded to media speculation that it is considering selling its 25 per cent stake in Foxtel. ConsMedia confirms it’s had very preliminary discussions concerning a possible control proposal, but that no offer has been made and it’s not considering selling its Foxtel interest. ConsMedia shares fell 1.82 per cent today, closing at $3.24.
Qantas Airways Limited
(ASX:QAN) slashes spending, announcing it will save $400 million by delaying the delivery of two new Airbus A380s.
Lend Lease Group
(ASX:LLC) secures a $210 million contract to carry out bulk earthworks for the BHP Billiton Mitsubishi Alliance Caval Ridge Mine project in central Queensland.
Best and worst performers
The best performing sector was Telco Services adding 6 points to close at 1,239. The worst performing sector was Energy, losing 321 points to close at 13,944.
The best performing stock in the S&PASX 200 was Bathurst Resources
(ASX:BTU), rising 5.79 per cent to close at $0.64. Shares in Independence Group
(ASX:IGO) and Invocare Limited
(ASX:IVC) also closed higher.
The worst performing stock was Coalspur Mines Limited
(ASX:CPL), dropping 9.51 per cent to close at $1.38. Shares in Macmahon Holdings
(ASX:MAH) and Discovery Metals Limited
(ASX:DML) also closed lower.
IPO
Cuesta Coal Limited (ASX: CQC) floated today with an issue price of 30 cents, opening price of 24 cents and closing price of 17 cents.
Commodities
Gold is trading at $US1,635 an ounce and is down $27.50 on the week.
Light crude is flat at $US102.54 a barrel.
The Australian dollar
The Australian dollar is buying $US1.0266 and is 2 cents down over the week.
