Despite negative offshore leads the Australian share market opened higher before briefly dipping into the red in early afternoon trade before closing 0.78 per cent higher.
Today the S&P/ASX 200 index closed 27 points up to finish at 4,074. On the futures market, the SPI is currently 14 points up.
Economic news
The Commonwealth Bank Business Sales Indicator has shown retail spending continued to rise in April, for the ninth straight month, up 0.5 per cent. However the outlook is uncertain as trend growth has eased, slowing from 0.6 per cent in March and 0.8 per cent in February.
Company news
Qantas Airways Limited (ASX:QAN) today finally confirmed it will cut 500 engineering jobs and close its heavy maintenance base at Tullamarine Airport in Melbourne. The cuts, which are set to cost Qantas $50 million in restructuring expenses, are part of the companies streamlining of its maintenance and engineering operations. It is hoped this will save the company between $70 and $100 million per year. Shares in Qantas closed steady at $1.43.
Building products maker James Hardie Industries SE (ASX:JHX) reported a net profit of $613 million for the full year to March 31, compared with a $US 347 million loss last year. The swing back into profit comes on the back of a $370 million refund following a dispute with the Australian Taxation Office. However CEO Louis Gries warned of a bleak outlook with expectations the Australian housing market will continue to contract over the next 12 months. Shares in James Hardie closed 1.42 per cent down at $6.95.
Printer, PMP Limited (ASX:PMP) confirmed they are in talks with manufacturing, equipment and logistics business TMA Group, regarding a takeover offer, which values the company at around $250 million.
Agribusiness group Elders Limited (ASX:ELD) announced a return to profitability today posting a $40.5 million profit for the six months to March, bolstered also by $34.4 million settlement from the ATO.
Orica Limited (ASX:ORI) has confirmed its collaboration with global chemical company Yara and oil and gas explorer Apache to build a $US800 million ammonium nitrate plant in Western Australia.
Rio Tinto Limited (ASX:RIO) is reportedly rethinking its Pilbara expansion following concerns that Australia’s high costs and fiscal regime are becoming too challenging.
Best and worst performers
The best performing sector was Materials adding 151 points to close at 9,750. The worst performing sector was Industrials, losing 7 points to close at 3,377.
The best performing stock in the S&PASX 200 was Silver Lake Resources Limited (ASX:SLR), rising 10.92 per cent to close at $2.64. Shares in Independence Group NL (ASX:IGO) and Alacer Gold Corp (ASX:AQG) also closed higher.
The worst performing stock was Dart Energy Limited (ASX:DTE), dropping 5.13 per cent to close at $0.18. Shares in Intrepid Mines Limited (ASX:IAU) and Ramelius Resources Limited (ASX:RMS) also closed lower.
Commodities
Gold is trading at $US 1,597 an ounce. Light crude is $0.41 up at $US 91.89 a barrel.
The Australian dollar
The Australian dollar is buying $US 0.9855.
