Market Wrap: ASX losses chip into weekly gain

Market Reports

Pushed down by negative leads the Australian share market lost 0.6 per cent today with the losses chipping into the weekly gain. Record highs on Wall Street buoyed the local bourse over a week which also saw the release of the Abbott Government’s first Federal Budget but falls on equity and commodity markets overnight rippled onto our shores today and the benchmark closed near session lows. 
 
In the week ahead investors will get clues into the central bank’s thinking when meeting minutes are released. The Reserve Bank of Australia’s (RBA) May board meeting minutes are due Tuesday and minutes of the US Federal Reserve’s last meeting are expected Wednesday.
 
Figures
 
The S&P/ASX 200 index lost 32 points today, trimming the weekly gain of 18 points to close at 5,479. 
 
The value of trades was $3.5 billion on volume of 651 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 ANZ Banking Group (ASX:ANZ)
 
On the futures market the SPI is 37 points lower. 
 
Wall Street
 
US indexes are looking mixed at end of their four trading days this week: The Dow Jones Industrial Average has lost 104 points. The S&P 500 Index has lost 5 points. The NASDAQ has added 18 points. The 100 Index has added 25 points. 
 
Economic news
 
Lending has risen to a six-year high in March according to the Australian Bureau of Statistics: Total new lending commitments rose by 1.2 per cent for a year-on-year gain of 24.5 per cent. Commercial finance rose 2.8 per cent in March pushing business loans 36.7 per cent over the year. While housing finance fell 1.2 per cent in March home loans are 12.9 per cent higher over the year. Personal lending also eased 1.7 per cent in March but is up 2.9 per cent over the year.
 
Mergers and acquisitions
 
IOOF Holdings Limited (ASX:IFL) has made a $670 million bid to buy Shadforth Financial Group Australia. The financial management company hopes the takeover will enable it to grow to Australia’s third largest financial advice business. The Shadforth board has unanimously backed the offer and asked shareholders to support the deal. Shares in IOOF Holdings rose 1.48 per cent today to finish the week at $8.25. 
 
Takeover target Goodman Fielder Limited (ASX:GFF) has had its takeover offer price sweetened by its suitors, Singapore-based Wilmar International and Hong Kong’s First Pacific. The breads and spreads manufacturer rejected the original bid of $0.65 per share last month which has now been lifted to $0.70 per share. Goodman Fielder has been given until 8pm this evening to support the offer and allow due diligence. Shares in Goodman Fielder fell 1.12 per cent today to finish the week at $0.67. 
 
Company news 
 
Oil Search Limited (ASX:OSH) has predicted a fourfold boost in production will enable the oil and gas developer to hike its dividend payments. Shareholders were told at the company’s Annual General Meeting (AGM) the output ramp-up will be driven by the Papua New Guinea liquefied natural gas project which is expected to be producing at full capacity by 2015. Shares in Oil Search rose 0.22 per cent today to finish the week at $9.20.
 
Leighton Holdings Limited (ASX:LEI) has reached a settlement of a shareholder class action involving about 2,400 investors by agreeing to pay out almost $70 million. The claims relate to a write down the company made in April 2011. The construction company also today revealed it has scored a $100 million contract to build mine infrastructure for Rio Tinto Limited (ASX:RIO) in Western Australia. Shares in Leighton Holdings fell 1.67 per cent today to finish the week at $20.55.
 
Best and worst performers
 
One of the only sectors to close on positive territory was utilities, adding 3 points to 5,903. The worst performing sector was consumer discretionary, retreating 19 points to close at 1,806.
 
The best performing stock in the S&P/ASX 200 was Drillsearch Energy Limited (ASX:DLS), rising 3.75 per cent to close at $1.52. Shares in Ten Network Holdings Limited (ASX:TEN) and Evolution (ASX:EVN) also closed higher.
 
The worst performing stock was Mount Gibson Iron Limited (ASX:MGX), dropping 5.7 per cent to close at $0.74. Shares in Independence Group NL (ASX:IGO) and Western Areas Limited (ASX:WSA) also closed lower. 
 
Commodities 
 
The price of gold is buying $US1,295.77 an ounce, up $64.54 over the week. 
Light crude is $0.87 lower at $US101.50 a barrel. 
 
The Australian dollar
 
The Australian dollar is buying $US0.9353, slightly higher over the week. 

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