The Australian share market spent the day in the red, weighed by losses among blue chips, although the big miners helped pull the market off its early lows as sentiment regarding comments about Chinese reform improved, sending the materials sector to the top of the majors.
The S&P/ASX 200 index closed 17 points down to finish at 5,385.
The value of trades was $3.13 billion on volume of 551 million shares at the close of trade. The top three stocks by value were Westpac Banking Corporation
(ASX:WBC), National Australia Bank Limited
(ASX:NAB) and BHP Billiton Limited
(ASX:BHP).
On the futures market the SPI is 13 points down.
Company news now
Australia and New Zealand Banking Group
(ASX:ANZ) has been cleared of price fixing breach allegations by the Federal Court, regarding alleged price fixing between the bank and Mortgage Refunds Pty Ltd. The ACCC bought the proceedings against the bank in 2004, alleging that it engaged in price fixing by making an agreement allowing Mortgage Refunds to offer ANZ mortgage products only if it limited refunds paid to customers. The court says ANZ and Mortgage Refunds were not competitors and thus the allegations do not constitute price fixing, however the competition watchdog says it will give the judgement careful consideration. Shares in ANZ closed 0.56 per cent down at $32.10.
Virgin Australia Holdings Limited
(ASX:VAH) chief executive John Borghetti has responded to Qantas' claims that it is receiving an unfair advantage, emphasising that Virgin has merely ended a monopoly in Australia’s skies. Qantas boss Alan Joyce has formally complained to Prime Minister Tony Abbott, Transport Minister Warren Truss and state governments about the regulatory restrictions imposed on its business compared to Virgin. Shares in Virgin closed 3.7 per cent down at $0.39.
Elders Limited
(ASX:ELD) shares fell 4.17 per cent after it significantly widened its full year loss to $505.2 million, impacted by difficult market conditions and impairments primarily driven by divestments and restructure to pure-play agribusiness.
Downer EDI Limited
(ASX:DOW) shares gained 1.76 per cent after it secured a four-and-a-half year, half a billion dollar contract for mining services at the Roy Hill iron ore mine in the Pilbara.
Amcor Limited
(ASX:AMC) will acquire privately owned Australian flexible packaging business Detmold for $50 million, subject to ACCC approval.
National Australia Bank Limited
(ASX:NAB) boss Cameron Clyne’s statutory salary was reduced by $1 million in 2013 following investor backlash over remuneration last year.
Best and worst performers
The best performing sector was Materials adding 2 points to close at 10,205.
The worst performing sector was Energy, losing 85 points to close at 13,791.
The best performing stock in the S&PASX 200 was Arrium Limited
(ASX:ARI), rising 7.89 per cent to close at $1.64. Shares in Ten Network Holdings Limited
(ASX:TEN) and Sundance Resources Limited
(ASX:SDL) also closed higher.
The worst performing stock was St. Barbara Limited
(ASX:SBM), dropping 9.72 per cent to close at $0.33. Shares in Perseus Mining Limited
(ASX:PRU) and OceanaGold Corporation
(ASX:OGC) also closed lower.
Commodities
Gold is trading at $US1,288 an ounce. Light crude is $0.08 up at $US93.84 a barrel. The Australian dollar is buying $US0.9400.
