The Australian share market pulled back from the peak of today’s gains to finish the session where it started. Despite a lacklustre start to the month of May local stocks eeked out a weekly gain, bouyed by pledges from the European Central Bank and US Federal Reserve to continue economic stimulus. Investors now turn attention to America’s key monthly jobs report due later today with expectations of a steady 7.6 per cent unemployment rate and 140,000 jobs added in April.
Figures
The S&P/ASX 200 index lost 0.5 point today, just slightly narrowing the weekly gain of 32 points to end at 5,130.
The value of trades was $4 billion on volume of 659 million shares at the close of trade.
The top three stocks by value were Telstra Corporation Limited
(ASX:TLS), Westpac Banking Corporation
(ASX:WBC) and Macquarie Group Limited
(ASX:MQG).
On the futures market the SPI is 1 point lower.
Wall Street
US stocks have gained over the four trading days this week: The Dow Jones Industrial Average has added 131 points, the S&P 500 Index added 15 points, the Nasdaq added 51 points and the 100 Index added 63 points.
Economic news Australia's services sector continued to contract last month, at the quickest pace since the end of 2012. The Australian Industry Group and Commonwealth Bank of Australia’s
(ASX:CBA) Performance of Services Index fell 5.5 points to 44.1 in April, remaining below 50 which indicates shrinking activity in the sector.
Company profit results Westpac Banking Corporation
(ASX:WBC) has booked better than expected first half cash earnings result and revealed a surprise dividend. Though the bank’s cash earnings grew 10 per cent to $3.5 billion CEO Gail Kelly says banking conditions remain tough. Westpac has declared a one-off 10 cent per share payout in addition to an interim dividend of 86 cents. Shares in Westpac lifted following the result but slipped into the red by afternoon to close 1.03 per cent lower at $33.55.
Macquarie Group Limited
(ASX:MQG) has posted a 17 per cent annual profit jump, forecast growth ahead and announced an improved dividend. Australia’s biggest investment bank reported a full year net profit of $851 million, aided by market conditions and cost cutting. The bank also revealed the retirement of its group head of banking and financial services, Peter Maher. Shares in Macquarie Group soared 10.88 per cent today, ending the week at $43.11.
Contract Awards Shares in WorleyParsons Limited
(ASX:WOR) closed 0.85 per cent higher after the service prodiver was awarded a $92.5 million engineering, procurement and construction management contract to develop the Kami Iron Ore project in Canada.
Shares in Transfield Services Limited
(ASX:TSE) closed 1.95 per cent lower despite the service provider scoring a $240 million six year contract with the Department of Defence.
Best and worst performers
The best performing sector was health care adding 180 points to close at 12,950.
The worst performing sector was utilities, losing 56 points to close at 5,578 points.
The best performing stock in the S&PASX 200 was Macquarie Group Limited
(ASX:MQG), rising 10.88 per cent to close at $43.11. Shares in JB Hi-Fi Limited
(ASX:JBH) and St. Barbara Limited
(ASX:SBM) also closed higher.
The worst performing stock was Mirabela Nickel Limited
(ASX:MBN), dropping 8.33 per cent to close at $0.11. Shares in Kingsgate Consolidated Limited
(ASX:KCN) and Resolute Mining Limited
(ASX:RSG) also closed lower.
Commodities
Gold is trading at $US1,474 an ounce, up $2.30 over the week.
Light crude is $0.27 lower at $US93.72 a barrel.
The Australian dollar
The Australian dollar is buying $1.026, down $0.003 over the week.
