The Australian share market ended higher today, extending gains over what has been a volatile week of trade marked by uncertainty about the strength of China’s economy. Local stocks got off to a horror start and shed 1.3 per cent on Monday but recovered over the week as the US Federal Reserve suggested it is in no rush to raise rates. Today’s performance was boosted by the banks but offset by weakness among the miners who widened losses as the session wore on.
Figures
The S&P/ASX 200 index rose 13 points today, extending the weekly gain of 14 points to end at 5,493.
The value of trades was $4.11 billion on volume of 727 million shares at the close of trade.
The top three stocks by value were Westpac Banking Corporation
(ASX:WBC), ANZ Banking Group
(ASX:ANZ) and Commonwealth Bank of Australia
(ASX:CBA).
On the futures market the SPI is 23 points higher.
Wall Street
US stocks have risen over the four trading days this week: The Dow Jones Industrial Average has gained 96 points. The S&P 500 Index has gained 22 points. The NASDAQ has gained 85 points. The 100 Index has gained 86 points.
Company news
Spotless Group Holdings Limited
(ASX:SPO) rounded out a week of big IPO’s with its strong return to the ASX today. The cleaning and services company listed with an issue price of $1.60, jumped to $1.75 at open and closed their first day of trade at $1.71. Mortgage lender insurance firm Genworth Mortgage Insurance Australia Limited
(ASX:GMA) listed with an issue price of $2.65 on Tuesday and have since moved higher to end the week at $3.00.
More evidence of the mining services slowdown has surfaced with Lycopodium Limited
(ASX:LYL) today cutting its annual profit guidance. The company now expects to post a net profit of $4 million in the current financial year, down from an earlier forecast of $9.5 million and down from last year’s profit of $22.5 million. Lycopodium has partially attributed the downgrade to a deferral of work, competitive landscape and the cost of downsizing operations. Shareholders punished the company with Lycopodium’s stock plunging 14.78 per cent to close the week at $2.48.
M&A action
Shares in Treasury Wine Estates Limited
(ASX:TWE) jumped amid speculation a bidding war could erupt for the world's biggest listed pure-play winemaker. The company rejected a $3.05 billion takeover offer from Kohlberg Kravis Roberts & Co on Tuesday. Speculation has since surfaced China's Bright Food is mulling its own bid to buy the company. Shares in Treasury Wine Estates jumped 4.66 per cent today to end the week at $5.17.
Days after backing a sweetened takeover bid from its suitors Goodman Fielder Limited
(ASX:GFF) has shown one of the world’s largest sovereign wealth funds has appeared on its register. The breads and spreads manufacturer backed Wilmar and First Pacific’s $1.37 billion takeover bid on Monday. Today Goodman Fielder showed the investment manager of Norway’s sovereign wealth fund has bought up a 5.06 per cent interest in the company. Shares in Goodman Fielder ended today steady at $0.69.
Best and worst performers
The best performing sector was real estate investment trusts, adding 6 points to close at 1,067.
The worst performing sector was materials, losing 34 points to close at 10,016 points.
The best performing stock in the S&P/ASX 200 was Lynas Corporation Limited
(ASX:LYC), lifting 8.33 per cent to close at $0.13. Shares in Qantas Airways Limited
(ASX:QAN) and Treasury Wine Estates Limited
(ASX:TWE) also closed higher.
The worst performing stock was Regis Resources Limited
(ASX:RRL), retreating 25 per cent to close at $1.71. Shares in Atlas Iron Limited
(ASX:AGO) and OZ Minerals Limited
(ASX:OZL) also closed lower.
Commodities
The price of gold is buying $US1,294 an ounce, down $1.43 over the week.
Light crude is $0.33 lower at $US103.74 a barrel.
The Australian dollar
The Australian dollar is buying $0.9243, down over the week.
