The Australian share marketshook off early wobbles and closed 0.21 per cent up. Telstra charged to new record highs while takeover talk sent stock in Treasury Wines sharply higher.
The S&P/ASX 200 index closed 11 points up to finish at 5,420.
The value of trades was $3.93billion on volume of 683 million shares at the close of trade. The top three stocks by value were the just listed Genworth Mortgage Insurance Australia Limited
(ASX:GMA), Commonwealth Bank of Australia
(ASX:CBA) and BHP Billiton Limited
(ASX:BHP)
On the futures market the SPI is 12 points up.
Economic news
An ANZ-Roy Morgan poll has reported a further drop in consumer confidence since the Federal Budget was released. The weekly reading was 3.2 per cent lower at 100.4 and is down 14 per cent since some of the policies outlined in the Federal Budget started leaking out around a month ago. The fall is the polls strongest decline since 2008. The report suggests people will tighten their purse strings in the short term however household consumption should improve later in the year.
Company news
Treasury Wine Estates Limited
(ASX:TWE) told the market today it has rejected a cash offer of $4.70 per share from Kohlberg, Kravis Roberts. The company had received a confidential non-binding proposal on 16th April and held preliminary and confidential discussions with KKR. However, the company discovered late Monday night that KKR advisors had let news of the deal slip to one or more shareholders and therefore confidentiality was lost. The board of TWE says the offer is too cheap and rejected the deal in favour of continuing with CEO Michael Clarke’s plans to improve company performance.
Shares in Treasury Wine Estates skyrocketed 17.94 per cent to $4.80
Online marketing company 99 Wuxian Ltd
(ASX:NNW) today announced a joint marketing programme with leading Chinese bank ICBC, one of China’s largest state-owned commercial banks with more than 130 million mobile banking customers. The campaign operated through China’s leading social media platform WeChat and the ICBC mobile banking app and is aimed at encouraging banking customers to conduct transactions online rather than at their branch. 99 Wuxian also launched its new Markleting Managing Service or MMS with Beijing Rural Commercial bank chosing the platform to deliver an e-gift to customers. The M-commerce company is advancing its spread in the lucrative mobile technology platform in China recently announcing a number of new deals including a new mobile game recharge platform to capitalise on the rapid use of mobile phones in China as a key source of entertainment. Shares in 99Wuxian have lifted 2.60 per cent to $0.40 on the news.
Rural services group Ruralco Holdings (ASX:RHL)has reversed its fortunes swinging to a first half profit of $5.1 million from a trading loss of $500,000 in the first half of 2013. Shares in DUET Group
(ASX:DUE) firmed after news it had 14.1 per cent of its shares snapped up by Spark Infrastructure Limited
(ASX:SKI).
Finally, a jump higher for Fortescue Metals Group Limited
(ASX:FMG) which has found a 1.16 billion tonne addition to its Greater Solomon Mineral Resource. The total mineral resource for the Greater Solomon Area has now been lifted to over 4.5 billion tonnes.
Electrical rental supplier Thorn Group Limited
(ASX:TGA) has reported a 16 per cent increase in revenue to $235 million and strong growth in all its business.
To the best and worst performers of the day: The best performing sector was consumer staples adding 79 points to close at10,102.The worst performing sector was energy, losing 49 points to close at 14,116 points.
The best performing stock in the S&P/ASX 200 was Treasury Wines estates, rising 17.94 per cent to close at $4.80. Shares in Pacific Brands and Sirius Resources also closed higher.
The worst performing stock was Acrux, dropping 6.35 per cent to close at $0.89. Shares in Mineral Resources and Breville Group also closed lower.
IPOs Genworth Mortgage Insurance Australia Limited
(ASX:GMA) started trading today. The mortgage lender insurance firm floated with an issue price of $2.65, opened at $2.91 and is closed at $3.00.
Commodities
Gold is buying $US1,293 an ounce. Light crude is $0.59 up at $US102.61 a barrel. The Australian dollar is buying 92.87US cents.
