The Australian share market looks set for a steady start to the second quarter after posting its worst start to the new year since 2010. The benchmark index gained less than 1 per cent in the March quarter amid concerns over China’s economic prospects and tensions between Ukraine and Russia.
Wall Street was given a boost overnight after Federal Reserve chair Janet Yellen claimed the central bank will support the US economy for some time to come. Closer to home eyes will be on our own central bank today when the Reserve Bank meets to deliver its April interest rate decision. Most analysts expect the key cash rate will stay steady at a record low of 2.5 per cent for the seventh straight meeting.
Global markets
Wall Street rose into the new week on Monday to end the March quarter on a high: The Dow Jones Industrial Average gained 135 points to close at 16,458, the S&P 500 gained 15 points to close at 1,872 and the NASDAQ gained 43 points to close at 4,199.
European markets started the new week in the red: London's FTSE 100 Index lost 17 points, France's CAC 40 lost 20 points and Germany's DAX lost 31 points.
Asian markets closed mixed on Monday: Japan’s Nikkei added 132 points, Hong Kong’s Hang Seng added 86 points, and China’s Shanghai Composite lost 8 points.
The Australian share market rose 0.5 per cent yesterday but posted a gain of only 0.1 per cent over March: The S&P/ASX 200 Index rose 28 points on Monday to finish the first quarter of the year at 5,395. On the futures market the SPI is 4 points higher.
Currencies
The Australian dollar at 7:25am was buying $US0.9272, 55.65 Pence Sterling 95.72 Yen and 67.32 Euro cents.
Economic news due out today
Reserve Bank of Australia: April board meeting and interest rate decision
Reserve Bank of Australia: Index of commodity prices for March
Dun and Bradstreet: Business expectations survey
The Australian Industry Group: Performance of manufacturing (PMI) index for March
Company news
G8 Education Limited
(ASX:GEM) was the first quarter’s best performing stock in the benchmark index with a gain of more than 60 per cent since the calendar year began. The provider of developmental and educational child care services inked a number of deals to boost its centre portfolio over the quarter. Only last week G8 spent $228 million to increase its portfolio by more than 28 per cent so that it will be operating 388 centers by the end of September 2014. Shares in G8 Education rose 0.4 per cent yesterday to end the first quarter of the year at a record $5.07.
Australia’s Big Four Banks helped to push the market higher over the quarter, led by Westpac Banking Corporation
(ASX:WBC). The bank gained 3.3 per cent over last month and has risen 6.7 per cent from the beginning of the calendar year. Over the quarter ANZ Banking Group
(ASX:ANZ) also lifted by a healthy 2.6 per cent and National Australia Bank Limited
(ASX:NAB) gained 1.8 per cent. Commonwealth Bank of Australia
(ASX:CBA) lost almost 0.5 per cent in the March quarter but jumped 3.7 per cent over the last month. Shares in Westpac Banking Corporation rose 0.38 per cent yesterday to end the first quarter of the year at $34.56.
Ex-dividends today
Aberdeen Leaders
(ASX:ALR) paying a 1.5 cent fully franked dividend
GBST Holdings
(ASX:GBT) paying a 4 cent fully franked dividend
Hunter Hall Global
(ASX:HHV) paying a 3.5 cent dividend
1300 Smiles Limited
(ASX:ONT) paying a 6.5 cent fully franked dividend
Southern Cross Media
(ASX:SXL) paying a 4.5 cent fully franked dividend
Commodities
Gold has fallen $10.40 to $US1,283.40 an ounce for the April contract on Comex.
Silver has eased $0.04 to $19.75 for May.
Copper has lost $0.02 to $3.03 a pound.
Oil has dropped $0.09 to $US101.58 a barrel for May light crude in New York.
