Press Release

THE Australian share market ended flat yesterday after failing to sustain an opening burst despite news of takeover moves on Southcorp and Ten Network. Gains in a number of mid-sized stocks helped balance out weakness in key sectors such as banks and resources. The All Ordinaries index rose 0.8 of a point to 4069.1 after earlier setting an intraday record of 4086.5. The S&P/ASX 200 index fell 0.9 of a point to 4069.5 after earlier flirting with a new intraday record. The top traded stock by volume was Lion Energy, with 118.28 million shares worth $1.3 million traded. The stock rose 0.1c to 1.1c. Market turnover was 1.34 billion securities worth a total of $2.87 billion with 789 stocks rising, 651 falling and 433 steady. On the Sydney Futures Exchange, the March share price index contract was 14 points higher at 4080 - a 10.5 point premium to the underlying index - on a volume of 10,027. Reynolds & Co director Grant Williams said the market yesterday stuck to its recent pattern of backtracking late in the day to follow the futures market. Shares in Foster's Group and Southcorp were both in trading halts with the revelation that Foster's had bought 18.8 per cent of Southcorp from the influential Oatley family for $584 million. The move has renewed speculation that Southcorp may be taken over. Other companies in the beverage sector were boosted by the news. McGuigan Simeon added 24c to $6.02 and Evans & Tate rose 7c to $1.11. Shares in the Ten Network shot up 24c to $4.40 following a report in The Australian on rumours that Fairfax intended to buy a stake in the television station. Fairfax fell 1c to $4.50. The Seven Network added 8c to $6.30 but Nine Network owner Publishing & Broadcasting Ltd fell 5c to $17.01. News Corporation voting and non-voting scrip lost 7c to $23.48 and $22.36 respectively. Newcastle Stock Exchange raced to 86c from an issue price of 50c after a $12 million raising. The regional market, reactivated in 2001 after lying dormant since World War II, lists 28 stocks and is in negotiations to buy the Bendigo Stock Exchange. NSX now had to meet the expectations of investors, said chief executive Michael Cox. "It's been a good day for the investors," Mr Cox said. "The whole process of raising the profile of the exchange by listing on the ASX has worked. We've had more applications to join our stock exchange already." Investors raced for a piece of Harvey Norman, with more than 10 million shares changing hands the day after the furniture and electronics retailer reported its worst half-year sales performance in 11 years. Three large special placements - ranging from 1million shares to 4.17 million - went through the market at between $3.06 and $3.08. The stock was down 3c to $3.07.