Class actions leave a bitter taste

SHARES in Retail Food Group lost further ground after the company was hit with a new class action.

A third law firm is preparing to launch a class action against the company behind Michel’s Patisserie and Gloria Jean’s for allegedly failing to disclose troubles in its network.

Shares lost 0.6 per cent yesterday to close at 85.5c.

The overall market softened in late trade yesterday to finish the day in the red but ended the week about 1 per cent stronger.

At the close, the benchmark ASX 200 was down 2.5 points, or 0.04 per cent, at 6116.2 points, with the miners strong, banks mixed and Telstra shares one per cent firmer.

The broader All Ordinaries closed down 0.5 points, or 0.01 per cent, at 6216.4 points. Resource stocks climbed as iron ore and oil headed higher.

Fortescue Metals closed up 1.9 per cent at $4.93 while Rio Tinto was 1.1% up at $83.88.

BHP Billiton gained 1.3 per cent to $33.16 and is at a nearfour-year high on the back of gains since April.

The big four banks were between 0.6 and 0.9 per cent weaker, with the exception of ANZ, which added 0.3 per cent to $28.15.

Telstra shares lifted 1 per cent to $3.20 after shedding 2.5 per cent on Thursday.

REA Group shares hit an record high of $89.16 before closing at $88.71, up 5.2 per cent.