The Australian share market came off the day’s highs after investors digested some disappointing retail sales data, closing 0.5 per cent up with mining stocks providing the backbone to keeping the market in solidly positive territory.
The S&P/ASX 200 index closed 27 points higher to finish at 5,156. The value of trades was $3.4 billion on volume of 639 million shares at the close of trade. The top three stocks by value were BHP Billiton Limited
(ASX:BHP), Westpac Banking Corporation
(ASX:WBC) and ANZ Banking Group
(ASX:ANZ).
On the futures market the SPI is 23 points up.
Economic news
Defying analyst expectations of a rise, Australian retail spending slipped 0.4 per cent to $21.87 billion in March, according to the Australian Bureau of Statistics. Clothing, footwear and personal accessory retailing were the chief draggers, declining 4.2 per cent. Analysts had touted a 0.5 per cent rise in sales.
Consumer prices remains subdued in April according to the TD Securities Melbourne Institute Monthly Inflation Gauge. The reading increased by 0.3 per cent in April, following a 0.2 per cent rise in March. In the 12 months to April, the gauge rose 2.1 per cent, its equal lowest result in 9 months.
Company news Leighton Holdings Limited
(ASX:LEI) has reaffirmed its full year profit guidance of up to $600 million after completing what it described as a pleasing first quarter. In the three months to March 31, Leighton posted a net profit of $123 million, a significant lift on the $80 million loss recorded in the previous corresponding period. Shares in Leighton Holdings closed 2.21 per cent up at $19.43.
Tabcorp Holdings Limited
(ASX:TAH) full year earnings will be impacted by an $18.3 million levy decision from the Victorian government on its gaming machine operations. The gaming company says the Health Benefit Levy is contrary to its expectations of a pro-rata payment based on the limited period in which it actually operated gaming machines in the current financial year. Tabcorp says it is considering whether to commence legal proceedings to ensure the levy is applied on a pro-rata basis, as had been flagged in the states 2012-13 budget papers. Shares in Tabcorp closed 0.87 per cent stronger at $3.47.
Boral Limited
(ASX:BLD) says ongoing weakness in the Australian housing sector as well as weaker than anticipated results from its Construction Materials and Building Products operations have hit its third quarter earnings.
APN News and Media Limited
(ASX:APN) has appointed Michael Miller as its new CEO and announced he will earn a base salary of $1.2 million.
DEXUS Property Group
(ASX:DXS) will purchase three commercial towers in Perth’s Kings Square development for $434.8 million, a record commercial property pre-sale in Western Australia.
Fortescue Metals Group Limited
(ASX:FMG) has celebrated the opening of the Firetail iron ore mine at its Solomon development in the Pilbara, a major component of Fortescue’s production expansion slated for the end of this calendar year.
Best and worst performers
The best performing sector was Materials adding 243 points to close at 9,240.
The worst performing sector was Telco services, losing 9 points to close at 1,745.
The best performing stock in the S&PASX 200 was Mirabela Nickel Limited
(ASX:MBN), rising 50 per cent to close at $0.17. Shares in Karoon Gas Australia Limited
(ASX:KAR) and Lynas Corporation Limited
(ASX:LYC) also closed higher.
The worst performing stock was St. Barbara Limited
(ASX:SBM), dropping 5.98 per cent to close at $0.55. Shares in Drillsearch Energy Limited
(ASX:DLS) and Energy World Corporation Limited
(ASX:EWC) also closed lower.
Commodities
Gold is trading at $US1,477 an ounce. Light crude is $1.04 up at $US96.65 a barrel.
The Australian dollar
The Australian dollar is buying $US1.028.
