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The Australian share market reversed out of negative territory to close 0.4 per cent higher today. Over the week the local bourse stayed in the red amid rising concerns for European banks and a potential correction on Wall Street. Today’s performance saw most sectors end higher but the gold sub-index give up most of its gains by session’s end.
In the week ahead the US earnings season will ramp up as the Fed’s Chair Janet Yellen makes a Congressional testimony. Australia’s own monetary policy will be in focus with the release of minutes from the Reserve Bank’s July board meeting.
Figures
The S&P/ASX 200 index lifted 22 points today, trimming the weekly loss of 38 points to close at 5,487.
The value of trades was $3.69 billion on volume of 610 million shares at the close of trade.
The top three stocks by value were ANZ Banking Group (ASX:ANZ), BHP Billiton Limited (ASX:BHP) and Commonwealth Bank of Australia (ASX:CBA).
On the futures market the SPI is 30 points higher.
Wall Street
US indexes have retreated from last week’s record highs over the four trading days this week: The Dow Jones Industrial Average has lost 153 points. The S&P 500 Index has lost 21 points. The NASDAQ has lost 90 points. The 100 Index has lost 43 points.
Economic news
The latest loan data has shown strength but also evidence housing is coming off its highs. The Australian Bureau of Statistics has reported 52,092 home loan approvals in May. The result was only 21 approvals higher from April but 4.6 per cent stronger over the year and better than the 0.5 per cent fall economists had expected. Commsec says the results show the froth coming off the housing market with new home loans flattening, building approvals easing and home prices showing signs of more moderate growth.
Company news
Fortescue Metals Group Limited’s (ASX:FMG) full year exports have failed to meet its ambitious expectations despite a record fourth quarter result. The Pilbara focussed iron ore miner shipped 124.2 million tonnes in the 2014 financial year, down from guidance of 127 million tonnes. Shares in Fortescue Metals Group fell 0.23 per cent to end the week at $4.34.
Roc Oil Company Limited (ASX:ROC) shareholders have voted down a resolution to amend the company’s constitution just one day after Roc revealed it has received a second takeover offer. Some rogue Roc Oil shareholders had instigated the ‘protest vote’ to potentially disrupt a proposed $800 million merger with Horizon Oil Limited (ASX:HZN). Shares in Roc Oil Company rose 3.54 per cent to end the week at $0.58.
Downer EDI’s Limited (ASX:DOW) joint venture with Bombardier Transportation Australia has secured a $40 million maintenance contract with Western Australia’s Public Transport Authority. The joint venture has provided maintenance and cleaning work for WA’s Public Transport Authority for a decade.
Liquefied Natural Gas Limited (ASX:LNG) has progressed the development of its Magnolia LNG Project in the US. The gas producer has executed an engineering, procurement and construction term sheet with SK and E&C USA for the project’s first phase.
Best and worst performers
The best performing sector was industrials, adding 0.7 per cent to close at 4,126.
The worst performing sector was consumer discretionary, losing 0.2 per cent to close at 1,795 points.
The best performing stock in the S&P/ASX 200 was Qantas Airways Limited (ASX:QAN), lifting 6.64 per cent to close at $1.28. Shares in Evolution Mining (ASX:EVN) and Mineral Resources Limited (ASX:MIN) also closed higher.
The worst performing stock was Buru Energy Limited (ASX:BRU), dropping 6.1 per cent to close at $1.00. Shares in Fairfax Media Limited (ASX:FXJ) and Lynas Corporation Limited (ASX:LYC) also closed lower.
IPOs
Elanor Investors Group (ASX:ENN) started trading today. The investment and funds management business floated with an issue price of $1.25, opened at $1.25 and closed at $1.27.
Commodities
The price of gold is trading at $US1,337 an ounce, up $15.87 over the week.
Light crude is $0.64 higher at $US102.93 a barrel.
Currencies
The Australian dollar is buying $US0.9387, up $0.002 over the week.
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