ASX closes flat ahead of budget
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The news: The Australian sharemarket has started the week flat, ahead of the federal budget to be released on Tuesday.
The numbers: The benchmark ASX 200 rose 0.01% to 7,750, with six out of 11 sectors finishing in red.
The worst performing sector was energy, down 0.73%, followed by IT (-0.56%) and industrials (-0.15%). The slump in energy stocks was due to a fall in global oil prices over weaker-than-expected credit and inflation data in China. Majors Woodside (-1.12%) and Santos (-1.15%) fell, as did Karoon Energy (-2.67%) and Viva Energy (-0.72%).
The worst performing stock was Fletcher Building, down 10.56%, after the building supplies company flagged a double-digit drop in market volumes in Australia.
Southern Cross Media group plunged 9% after Anchorage Capital Partners pulled out of its consortium with ARN Media to take over the company. ARN offered a fresh bid to acquire Southern Cross and closed the trading day 1.19% higher after a volatile session.
After flagging a $112 million tax bill dispute relating to the sale of 25% of its retirement living business, Lendlease fell 3.5%. Real estate peer HMC Capital dropped 1.71% after announcing late on Friday that it had picked up a 10.3% stake in Baby Bunting.
Ansell investors were unmoved by the announcement that it had hiked its share purchase plan by $10 million after “strong support” as the stock ended 0.4% lower.
The best performing sector was consumer discretionary, up 0.52%, followed by consumer staples 0.48% and healthcare (0.41%). JB Hi-Fi (1.37%) and Harvey Norman (1.53%) led discretionary gains.
Ramelius Resources finished 1.5% higher after it increased its gold production outlook by 64%.
Elsewhere, NAB increased 0.53% after announcing its plans to raise $750 million through a new eight-year tier 1 capital issue.
The Australian dollar is lower buying 65.97 US cents.
The context: All eyes will be on the release of the federal budget on Tuesday evening. A special edition of Capital Brief’s Political Capital newsletter will be sent right as Treasurer Jim Chalmers gets up to speak.
Elsewhere, ARN Media will hold its annual general meeting.
Offshore, the US Bureau of Labor Statistics will release its latest producer price index.
