The Australian share market has ended a rocky week 0.9 per cent down in the red but still managed to eke out a weekly gain.
Despite the benchmark index’s spike above the 5,500 barrier yesterday, concerns over stocks with high earnings multiples such as technology continued to unnerve investors. Today’s steep equity market falls came after a week of improving commodity prices and a stronger local currency on the back of positive economic indicators. Takeover action also helped to lift the local bourse over the week and see takeover target David Jones Limited (ASX:DJS) end the week more than 20 per cent higher.
Figures
The S&P/ASX 200 index retreated 52 points today, almost wiping out the weekly gain of 5.8 points to finish at 5,429.
The value of trades was $4.07 billion on volume of 680 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 Coca-Cola Amatil Limited
(ASX:CCL).
On the futures market the SPI is pointing 58 points down.
Wall Street
US stocks have retreated over the four trading days this week: The Dow Jones Industrial Average has dropped 402 points. The S&P 500 Index has dropped 56 points. The Nasdaq has dropped 184 points. The 100 Index has dropped 150 points.
Economic news
China’s inflation rebounded last month. The National Bureau of Statistics reports the annual rate of consumer price inflation printed at 2.4 per cent while producer prices came in at 2.3 per cent in March from last year.
Australian total new lending commitments fell 0.7 per cent in February. The Australian Bureau of Statistics reports commercial finance also fell 2.5 per cent in February while housing finance gained 1.9 per cent, personal finance rose 3 per cent and lease finance firmed 0.9 per cent in the month.
Company news
Bank of Queensland Limited
(ASX:BOQ) has boosted its first half profit by 34 per cent to $134.7 million and announced a new acquisition. The Brisbane based regional lender will buy Investec Australia’s specialist finance and leasing business and has launched a $400 million entitlement offer to fund the purchase. Shares in Bank of Queensland entered into a trading halt today, having last traded $12.62.
Coca-Cola Amatil Limited
(ASX:CCL) has flagged lower first half earnings and warned challenging trading conditions are likely to continue this year. The beverage manufacturer has today cut its interim earnings guidance by 15 per cent, following on from last year’s net profit drop of more than 80 per cent. Shares in Coca-Cola Amatil dropped 14.56 per cent today to finish the week at $9.74.
Challenger Limited
(ASX:CGF) has launched a bid to buy the 41 per cent of Challenger Diversified Property Group
(ASX:CDI) that it does not already own. Shares in Challenger lost 2.03 per cent today to finish the week at $6.26.
The proposed $1.15 billion takeover of Leighton Holdings Limited
(ASX:LEI) by its Spanish owned shareholder Hochtief has received the green light from Australia’s Foreign Investment Review Board. Shares in Leighton Holdings eased 0.2 per cent today to finish the week at $20.10.
Best and worst performers
All the major sectors ended in negative territory: The sector with the smallest losses was utilities, easing 5.2 points to close at 5,651. The worst performing sector was consumer staples, dropping 154 points to close at 9,871 points.
The best performing stock in the S&P/ASX 200 was Echo Entertainment Group Limited
(ASX:EGP) after sharing an upbeat trading update, rising 12.03 per cent to close at $2.70. Shares in Paladin Energy Limited
(ASX:PDN) and Beadell Resources Limited
(ASX:BDR) also closed higher.
The worst performing stock was Coca-Cola Amatil Limited
(ASX:CCL), dropping 14.56 per cent to close at $9.74. Shares in Magellan Financial Group Limited
(ASX:MFG) and Buru Energy Limited
(ASX:BRU) also closed lower.
Commodities
The price of gold is buying $US1,320.66 an ounce, up $33.08 over the week.
Light crude is $0.20 lower at $US103.40 a barrel.
The Australian dollar
The Australian dollar is buying $0.9374, up $0.01 over the week.
