The Australian share market closed 0.23 per cent softer led by the mining stocks in a day of cautious trade ahead of the release of the Federal Budget tomorrow.
The S&P/ASX 200 index closed 12 points down to finish at 5,448.
The value of trades was $3.07 billion on volume of 533 million shares at the close of trade. The top three stocks by value were National Australia Bank Limited
(ASX:NAB), BHP Billiton Limited
(ASX:BHP)and Westpac Banking Corporation
(ASX:WBC)
On the futures market the SPI is 16 points down.
Economic news
The NAB monthly business survey shows a small rise in business confidence on increases in the employment market. The rise comes despite subdued business conditions in April and all the talk around a ‘tough budget’. Sales eased and profits were weaker with a sharp fall in forward orders. ‘Bell wether’ sectors such as wholesale and transport remain sluggish. Inflation pressures are muted and retail prices increased. Short term indicators are showing continued weakness pointing to further below trend economic growth into Q2.
Company news
G8 Education Limited
(ASX:GEM) has raised $150 million in an oversubscribed debt issuance. The money was raised in Singapore and will be used to fund the acquisition of a further 97 childcare and education centers by the end of September 2014. G8 had already settled on 64 centers last month. There will be left over capital for future acquisitions and debt refinancing which is in line with G8 Education’s strong growth strategy. The stock continues to enjoy investor favour advancing a further 5.92 per cent to $4.47.
Standard and Poor’s have upgraded its credit rating outlook on Goodman Group
(ASX:GMG) to positive from stable. It reflects the prudent execution of growth strategy and strong liquidity of the property group. S&P also praised Goodman Group practise of seeking a high level of pre-commitment before going ahead with its development projects.S&P also flagged a possible BBB+ rating within 12 months if the groups continues successful execution of its offshore growth strategy. Shares in Goodman Group lifted 0.79 per cent to $5.08.
The market liked Australian coal-bed methane developer Dart Energy Limited
(ASX:DTE) backing of a $212 million takeover bid from UK oil and gas producer IGas Energy Plc (LON:IGAS). IGas and Dart expect combining forces will create a market leading onshore UK oil and gas company.
Fertiliser supplier Incitec Pivot Limited
(ASX:IPL) has reported a 7 per cent increase in net profit for the half year ended 31 March 2014.
Shares in Kimberley Diamonds Limited
(ASX:KDL) have nosedived after the company said would have to delay development of its Ellendale Mine after being unable to secure an expected price increase for its premium fancy yellow diamonds.
Investa Office Fund
(ASX:IOF) is teaming up with engineering firm Arup to redevelop a prime real estate site at 151 Clarence Street in the heart of the Sydney CBD.
Best and worst performers
The best performing sector was industrials adding 16 points to close at 4,122.The worst performing sector was energy, losing 71 points to close at 14,235 points.
The best performing stock in the S&P/ASX 200 was Skilled Group, rising 7.04 per cent to close at $2.89. Shares in Sirius Resources and McMillan Shakespeare also closed higher.
The worst performing stock was Arrium, dropping 4.07 per cent to close at $1.06. Shares in Pacific Brands and Lynas Corporation also closed lower.
Commodities
Gold is buying $US1,289 an ounce. Light crude is $0.27 down at $US99.99 a barrel. The Australian dollar is buying 93.65 US cents.
