The Australian share market finished flat as investors backed off ahead of the release of the federal budget on Tuesday. The benchmark S&P/ASX200 index was up 13.8 points, or 0.29 per cent, at 4,756.8 points, while the broader All Ordinaries index was up 15.6 points, or 0.32 per cent, to 4,831.7.

On the ASX 24, the June share price index futures contract was 12 points higher at 4,755, with 39,000 contracts traded. EL&C Baillieu Stockbroking director Richard Morrow said the market strengthened in early morning trade due to the release of positive economic data out of the US. But investors decided to sit on the sidelines in the afternoon ahead of Tuesday's budget. However, several stocks continued to be out of favour with investors, including Fairfax and Leighton Holdings.

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The major miners finished in positive territory, while the banks were also stronger. BHP Billiton was up 17 cents to $44.75, Rio Tinto had added 44 cents to $80.01. Energy stocks were also rising, with Woodside up 54 cents to $45.85 and Santos gained 25 cents to $14.71. In financials, NAB was up six cents to $27.84, Westpac had gained 14 cents to $24.06, ANZ rose by 15 cents to $23.39 and Commonwealth Bank was two cents higher at $52.65.

Making news on Monday, shares in maintenance and cleaning services firm Spotless Group soared after it notified the market of a $657 million unsolicited takeover offer from a private equity firm. Its shares were up 24.5 cents, or 12.5 per cent, to $2.20.

Qantas engineers will stop work for an hour on Friday following a breakdown in wage negotiations with the airline. Its shares were up one cent, or 0.46 per cent, to $2.17. Fertiliser and explosives manufacturer Incitec Pivot increased first half profit by 25 per cent and said earnings would be biased towards the second half on seasonal factors. Its shares were down one cents, or 0.26 per cent, to $3.82.

Hastie Group shares rose 5.5 cents, or 23.91 per cent, to 28.5 cents. Among the worst performers on Monday was Seven West Media, which was down 13 cents, or 2.78 per cent, to $4.54. Fairfax shares closed 3.5 cents lower, or 3.11 per cent, at $1.09. National turnover was 2.07 billion shares worth $4.05 billion, with 603 stocks up, 475 down, and 403 unchanged.

The Australian dollar was higher late Monday, helped by a strong jobs report in the U.S. and rebounding commodities prices in Asia trading. Australian bonds slid on the short end of the curve just a day before Australia releases its federal budget for the next fiscal year. After a big drop in commodities prices last week sent the Australian currency to its first weekly decline since March 18, the currency started this week regaining some of that loss. Part of the move stemmed from a better than expected report on the U.S. job market on Friday, which lifted risk based currencies like the Australian dollar. The Australian dollar was changing hands at $1.0751, up from $1.0700 late Friday. It touched a day's high of $1.0778. Against the yen, it was at 86.71, up from 86.305.

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