After dropping at open the Australian share market reversed most of the session’s losses to post a flat finish. Shrugging off steep falls on Wall Street the local bourse moved off the session’s low while the gold sub index continued to strengthen. The tech sector stayed weak as investors reconsider their valuations on stocks with high earnings multiples. Blue chips also weighed the benchmark index down with the Big Four banks and major miners all ending in the red.
Figures
The S&P/ASX 200 index lost 3 points to close at 5,411.
The value of trades was $3.5 billion on volume of 604 million shares at the close of trade.
The top three stocks by value were BHP Billiton Limited
(ASX:BHP), ANZ Banking Group
(ASX:ANZ) and National Australia Bank Limited
(ASX:NAB).
On the futures market the SPI is 4 points lower.
Economic news
Business confidence deteriorated while business conditions improved in March. National Australia Bank Limited’s
(ASX:NAB) business survey has shown business confidence fell 3 points to +4 while conditions index rose 1 point to +1. NAB chief economist Alan Oster says mining continues to be the least confident industry.
Company news
Shares in Treasury Wine Estates Limited
(ASX:TWE) jumped after its new chief affirmed his focus on cutting costs and improving commercial performance. New CEO Michael Clarke has told shareholders it is clear the company must take action to reduce overhead expenditure. Mr Clarke would then hope to reinvest these savings back into consumer and brand marketing. Shares in Treasury Wine Estates jumped 7.2 per cent today to close at $3.87.
Shares in Cabcharge Australia Limited
(ASX:CAB) dropped in response to the New South Wales government's proposed changes to taxi legislation. The changes will see the state reduce the surcharge on credit and debit card payments for taxis to 5 per cent and allow customers to use mobile phone apps to book taxis. Shares in Cabcharge Australia dropped 5.38 per cent today to close at $3.87.
Wesfarmers Limited
(ASX:WES) owned supermarket giant Coles has agreed to publish corrective ads after admitted it likely contravened the Australian Competition and Consumer Commission’s (ACCC) consumer law after running a campaign on its store brand milk last year.
Global miner Rio Tinto Limited (ASX:RIO, LON:RIO) will exit one of the world’s biggest copper deposits by gifting its minority interest in Canadian company Northern Dynasty to two local Alaskan charities.
Regenerative medicine company Regeneus Limited
(ASX:RGS) has scored ethics approval to collect stem cells from human donors for use in the production of its new product for the treatment of osteoarthritis.
Provider of education and child care services Affinity Education Group Limited
(ASX:AFJ) has expanded its portfolio through the proposed acquisition of 51 centres for $80 million.
Best and worst performers
The best performing sector was materials, adding 51 points to close at 10,276.
The worst performing sector was industrials, losing 37 points to close at 4,015 points.
The best performing stock in the S&P/ASX 200 was Mesoblast Limited
(ASX:MSB), rising 7.59 per cent to close at $4.96. Shares in Treasury Wine Estates Limited
(ASX:TWE) and Atlas Iron Limited
(ASX:AGO) also closed higher.
The worst performing stock was TPG Telecom Limited
(ASX:TPM), dropping 5.47 per cent to close at $6.05. Shares in Cabcharge Australia Limited
(ASX:CAB) and Platinum Asset Management Limited
(ASX:PTM) also closed lower.
Commodities
Gold is buying $US1,309 an ounce.
Light crude is $0.70 lower at $US100.44 a barrel.
The Australian dollar
The Australian dollar is buying $US0.9295.
