The Australian share market closed 0.4 per cent lower today to book a fall over the week shortened by the Queen’s Birthday Public Holiday on Monday. Traders concerned themselves this week with the World Bank’s downgrade for global growth, rising conflict in Iraq and a surprise reversal in local jobs growth.
Though the benchmark index bounced from the low of the day most sectors ended in the red led by resources. Iron ore miners suffered with the price for iron ore hovering at near two year lows while gold miners were given a boost with a stronger price for the precious metal.
In the week ahead attention will turn to the Reserve Bank of Australia’s June board minutes minutes released on Tuesday following the bank’s decision to again keep rates at a record low of 2.5 per cent. In America the US Federal Reserve will meet on Wednesday when it is expected to again taper its monthly asset purchases by an extra $US10 billion.
Figures
The S&P/ASX 200 index fell 24 points today, widening the weekly loss of 59 points to finish at 5,405.
The value of trades was $5.38 billion on volume of 831 million shares at the close of trade.
The top three stocks by value were Coca-Cola Amatil Limited
(ASX:CCL), BHP Billiton Limited
(ASX:BHP), Commonwealth Bank of Australia
(ASX:CBA)
On the futures market the SPI is 30 points lower.
Wall Street
US indexes have traded mixed over the four trading days this week: The Dow Jones Industrial Average has retreated 102 points. The S&P 500 Index has fallen 10 points. The NASDAQ has added 1.4 points. The 100 Index has dropped 13 points.
Economic news
Total lending finance gained 3.5 per cent in April, representing the largest amount in five months and hitting a six-year high of $69.4 billion. The Australian Bureau of Statistics reports business finance commitments jumped 5.8 per cent, housing finance rose 1.4 per cent while personal lending commitments pulled back 2.2 per cent in April.
Company news
Leighton Holdings Limited
(ASX:LEI) has appointed Managing Directors to its new divisions just one day after announcing the re-structure as part of a strategic review. The construction giant will create four core businesses focussed on construction, mining, public private partnerships and engineering. The construction business will be branded Leighton Contractors and mining will be known as Thiess. Leighton Holdings also revealed this week it is considering possibly selling its property and services business John Holland. Shares in Leighton Holdings fell 1.64 per cent today to end the week at $19.82.
Australian iron ore developer Aquila Resources Limited
(ASX:AQA) has been told by its suitors their offer is final, will not be increased or extended and will close on July 11. Chinese giant Baosteel and coal haulage company Aurizon Holdings Limited
(ASX:AZJ) launched a $1.4 billion takeover bid for Aquila in early May. Only yesterday Australia’s fifth largest iron ore producer Mineral Resources Limited
(ASX:MIN) revealed it had bought a 12.78 per cent stake in Aquila. Shares in Aquila Resources sank 12.43 per cent today to end the week at $3.10.
Australia’s largest telco Telstra Corporation Limited
(ASX:TLS) has extended its National Wireless Construction contract with network services provider Service Stream Limited
(ASX:SSM) for an extra two years. Service Stream will continue to upgrade and construct the base stations of Telstra’s wireless network.
Australian Agricultural Company Limited
(ASX:AAC) will pay $8 million to acquire strategically significant properties close to Darwin in the Northern Territory. The beef cattle breeder says the properties span over more than 5,000 hectares and will act as a key hub for the company’s activities in northern Australian.
Best and worst performers
The only major sector to close higher was energy, firing up 181 points to close at 14,588. \
The worst performing sector was materials, losing 127 points to close at 9,487 points.
The best performing stock in the S&P/ASX 200 was Drillsearch Energy Limited
(ASX:DLS), rising 6.87 per cent to close at $1.55. Shares in Whitehaven Coal Limited
(ASX:WHC) and Evolution
(ASX:EVN) also closed higher.
The worst performing stock was Aquila Resources Limited
(ASX:AQA), dropping 12.43 per cent to close at $3.10. Shares in BC Iron Limited
(ASX:BCI) and Fortescue Metals Group Limited
(ASX:FMG) also closed lower.
Commodities
The price of gold is buying $US1,271 an ounce, up $US16.18 over the week.
Light crude is $2.13 higher at $US106.53 a barrel.
Australian dollar
The Australian dollar has remained at a seven-month high of $0.9419.
