The Australian share market has closed 0.2 per cent down, after early mild gains the market headed lower in morning trade, spooked by America’s largest bank, JPMorgan revealing a $US 2 billion trading loss. In afternoon trade the local market started to head in a more positive direction in response to Chinese inflation slowing.
Today, the S&P/ASX 200 index lost 11 points finishing the week 111 points lower at 4,285. On the futures market, the SPI is currently 16 points weaker.
Looking at Wall Street, over its four trading days this week: The Dow Jones Industrial Average fell 352 points. The S&P 500 Index lost 34 points, the Nasdaq lost 91 points, and the 100 Index shed 88 points.
Economic news
China’s inflation slowed in April from the month before. Official data shows the consumer price index (CPI) rose by 3.4 per cent year on year, compared with 3.6 per cent in March.
Company news
Australia and New Zealand Banking Group
(ASX:ANZ) has reduced its mortgage and small business lending interest rate by 37 basis points. The much anticipated decision is in response to the Reserve Bank’s 50 basis point cut last week. ANZ now sets rates independently of the RBA on the second Friday of the month. ANZ’s standard variable mortgage rate now stands at 7.05 per cent, effective from next Friday. ANZ shares fell 0.5 per cent today, closing at $22.04.
Slater & Gordon Limited
(ASX:SGH) will book at $10 million non-cash writedown after the High Court decided it won’t let its client appeal a Federal Court decision in a class action against a major pharmaceutical company. The law firm has funded the litigation on a ‘no win no fee’ basis since 2005. The writedown will be reflected in the 2012 financial year accounts. Slater & Gordon shares fell 1.69 per cent, closing at $1.75.
BHP Billiton Limited’s
(ASX:BHP) Petrohawk Energy has reported a $US 55 million loss in the three months to the end of March.
And Alesco Corporation Limited
(ASX:ALS) reaffirms its advice to shareholders to take no action on the proposed takeover bid from DuluxGroup Limited
(ASX:DLX) after receiving the bidder’s statement. On May 1 DuluxGroup announced an all cash takeover bid at a price of $2 per share.
Best and worst performers
The best performing sector was Heath Care adding 77 points to close at 9,124. The worst performing sector was Telco Services, losing 14 points to close at 1,236.
The best performing stock in the S&P/ASX 200 was Mirabela Nickel Limited
(ASX:MBN), rising 28.85 per cent to close at $0.34. Shares in Ramelius Resources and Perseus Mining Limited also closed higher.
The worst performing stock was Intrepid Mines
(ASX:IAU), dropping 4.73 per cent to close at $0.70. Shares in Karoon Gas Australia and Senex Energy also closed lower.
IPO
Bora Bora Resources Limited (ASX: BBR) floated today with an issue price of 20 cents, opening and closing price of 20.5 cents.
Commodities
Gold is trading at $US1,582 an ounce and is down $59.57 on the week. Light crude is flat at $US97.08 a barrel.
The Australian dollar
The Australian dollar is buying $US1.002 and is 1.5 cents down over the week.
