The share market has eked out a tiny gain despite a sharp drop in Telstra shares.
Telstra slumped 7.5 per cent to $4.22 – its lowest level in four-and-a-half years – after internet provider TPG Telecom said it will build its own $1.9 billion mobile network.
“Telstra got belted today – that was the main weight on the market,” Phillip Capital senior client adviser Michael Heffernan said.
“But I think that the fact that we had a big drag on the market with Telstra, and the fact that we finished up in front, is a sterling performance, and we’re only a hair’s breadth away from 6,000 points now.”
The benchmark S&P/ASX200 index rose 0.08 per cent to 5,934 points.
TPG shares, which last traded at $6.66, are in a trading halt as the telco raises capital to help fund its expansion plan.
The big four banks made modest gains, up between 0.2 per cent and one per cent, with ANZ leading the pack.
The major mining stocks posted small falls, with BHP Billiton down 0.35 per cent, Rio Tinto 0.2 per cent lower and Fortescue Metals 1.8 per cent weaker.
Gold miner Newcrest gained 1.6 per cent, and real estate stocks were among the best performers, with GPT Group up 2.3 per cent and Goodman Group two per cent higher.
Vaccines and blood products supplier CSL dropped 0.6 per cent after global biotech Shire ViroPharma launched legal action against CSL in the US, claiming one of its patents has been infringed.
The Australian dollar slipped back below 75 US cents, but has proved resilient as investors move to safe-haven assets as global concerns rise over the conflict in Syria and tensions on the Korean peninsula.
ON THE ASX:
* The benchmark S&P/ASX200 gained 4.7 points, or 0.08 per cent, to 5,934 points.
* The broader All Ordinaries index gained 4.3 points, or 0.07 per cent, to 5,968.9 points.
* The June SPI200 futures contract was up nine points, or 0.15 per cent, at 5,927 points.
* National turnover was 3 billion securities traded worth $6.7 billion.
CURRENCY SNAPSHOT AT 1700 AEST
One Australian dollar buys:
* 74.91 US cents, from 75.03 US cents on Tuesday
* 82.11 Japanese yen, from 82.93 yen
* 70.58 euro cents, from 70.85 euro cents
* 59.99 British pence, from 60.43 pence
* 107.94 New Zealand cents, from 107.97 NZ cents
GOLD:
The spot price of gold in Sydney at 1700 AEST was $US1,275.00 per fine ounce, up $US17.94 from $US1,257.06 on Tuesday.
BOND SNAPSHOT AT 1630 AEST:
* CGS 5.25 per cent March 2019, 1.636pct, down from 1.655pct on Tuesday
* CGS 4.25pct April 2026, 2.455pct, down from 2.492pct
Sydney Futures Exchange prices:
* June 2017 10-year bond futures contract at 97.465 (implying a yield of 2.535pct), up from 97.44 (2.56pct) on Tuesday
* June 2017 3-year bond futures contract at 98.2 (1.8pct), up from 98.19 (1.81pct).
(*Currency closes taken at 1700 AEST previous local session, bond market closes taken at 1630 AEST previous local session)
