The Australian share market has finished just ahead, gaining 0.1 per cent on the back of a 2.5 per cent gain in the materials sector. Despite this, the local market never quite flourished as the banks spent the day in negative territory.
The S&P/ASX 200 index closed 4 points up to finish at 4,975. The value of trades was $5.2 billion on volume of 888 million shares at the close of trade. The top three stocks by value were BHP Billiton Limited
(ASX:BHP), Commonwealth Bank of Australia
(ASX:CBA) and National Australia Bank Limited
(ASX:NAB)
On the futures market the SPI is 16 points up.
Economic news
The Westpac-Melbourne Institute Leading Index fell to 3.9 per cent in March, below a 4.1 per cent reading in February but well ahead of its long term trend of 2.8 per cent. Analysts predict a downturn in mining investment and commodity prices will see a more pronounced negative impact as the year goes on.
Construction work fell against expectations in the March quarter, according to the Australian Bureau of Statistics (ABS). Total construction work for the quarter slipped two per cent to $51.0538 billion. Homes and non-residential buildings like offices and shops, fell 1.1 per cent from the December quarter. Overall, construction work done is 0.2 per cent stronger than the previous corresponding period.
Home sales rose for the second straight month in April, continuing the housing industry's slow recovery, according to the Housing Industry Association (HIA). Just over 6,000 new homes were sold in April, an improvement of 3.9 per cent on March.
Company news
Tatts Group Limited
(ASX:TTS) has launched legal action against the Victorian government over a levy expected to cost the gambling company more than $42 million. Tatts says it commenced proceedings on Wednesday against the Victorian Treasurer Michael O'Brien, disputing the determination of a health benefit levy of $42.6 million for the 2012/13 financial year. Shares in Tatts Group closed steady at $3.28.
Westfield Group
(ASX:WDC) chairman Frank Lowy has cautioned that the subdued retail sales growth seen in Australia last year is continuing in 2013, however productivity within the groups local portfolio remains high. Mr Lowy says operating performance in Westfield’s international markets is encouraging, highlighted by the US, which appears to be well into a recovery phase following the GFC. Shares in Westfield Group closed 0.84 per cent down at $11.82.
Australia and New Zealand Banking Group
(ASX:ANZ) will spend $425 million buying back some of its shares, aiming to neutralising the dilutive impact of issuing the new shares it offered investors in April.
Wesfarmers Limited
(ASX:WES) says capital expenditure for the current financial year will be between $1.5 and $1.7 billion, amid continued earnings growth for most of its businesses.
BHP Billiton Limited
(ASX:BHP) is scaling back growth projects in its coal division in the short to medium term and may consider selling more assets.
Aristocrat Leisure Limited
(ASX:ALL) shares jackpotted more than 6 per cent today, as the gaming company generated an increased first half net profit of $52.5 million and determined to increase its target payout ratio of 60 to 80 per cent of net profit after tax.
Best and worst performers
The best performing sector was Materials adding 230 points to close at 9,447.
The worst performing sector was Financials excluding real estate investment trusts, losing 93 points to close at 6,221.
The best performing stock in the S&PASX 200 was Ten Network Holdings Limited
(ASX:TEN), rising 9.62 per cent to close at $0.29. Shares in Boart Longyear Limited
(ASX:BLY) and PanAust Limited
(ASX:PNA) also closed higher.
The worst performing stock was Coalspur Mines Limited
(ASX:CPL), dropping 11.67 per cent to close at $0.27. Shares in Mirabela Nickel Limited
(ASX:MBN) and Maverick Drilling and Exploration Limited
(ASX:MAD) also closed lower.
Commodities
Gold is trading at $US1,382 an ounce. Light crude is $0.20 down at $US94.81 a barrel.
The Australian dollar
The Australian dollar is buying $US0.9553.
