The Australian share market managed to close in positive territory – with many of the big miners finishing higher. Today also saw the RBA leave rates on hold. More on that shortly, but first to the markets and...
The S&P/ASX200 Index lifted 13 points to close at 4,900. On the futures market, the SPI is up 16 points.
In economic news: Sales on new cars fell in March – down almost 1 per cent from the same time last year.
Australia has produced a trade deficit of 205 million dollars. That’s below market forecasts of a 950 million surplus and well below January’s read of 1.4 billion dollars.
The Reserve Bank of Australia today decided to leave the official cash rate on hold at 4.75 per cent. The Bank says the higher exchange rate, the earlier decline in wages growth, and strong competition in some key markets are helping to keep inflation at levels consistent with the medium term objective of monetary policy. Price rises for some agricultural produce – which will boost the March quarter CPI – are expected to fall back later in the year.
Turning to company news: The proposed tie-up between the Singapore Exchange and the Australian Securities Exchange (ASX:ASX) took a serious hit today...an ASX release indicating the Singapore Exchange had been notified by the Foreign Investment Review Board that the Treasurer “is disposed to the view that the merger should be rejected as contrary to the national interest. Mr Swan emphasised that his decision was preliminary and he was still open to further representation on the matter from the Singapore Exchange. The ASX says it will continue to evaluate strategic growth opportunities – including further dialogue with the Singapore Exchange. Shares in the ASX shed 3.3 per cent to close at $33.70.
And Rio Tinto (ASX:RIO) says it’s still shy of its Riversdale target on the eve of the new deadline. Rio says its interest has risen to 44.31 per cent...still shy of the 47 per cent needed if shareholders are to receive $16.50 a share. If the target is not reached, the offer price of $16 will stand. The offer has been unconditional for a week, extended four times, and raised once. Shares in Rio Tinto closed 0.77 per cent firmer at $86.16.
Also making news: According to the Australian Financial Review, ASIC has launched its case against the 2007 board of Centro Properties Group (ASX:CNP) over allegations they should have known the company accounts were incorrect. And Standard and Poor’s has assigned a corporate credit rating of “A+” – with a stable outlook – to Westfield Retail Trust (ASX:WRT).
In other news: QBE Insurance Group (ASX:QBE) says its pre-tax insurance profit should grow by at least 30 per cent this year on the back of growth in premium income from recent acquisitions.
And Extract Resources Ltd (ASX:EXT) says that a feasibility study of its Husab uranium deposit in Namibia shows the project is viable at a cost of around 1.6 billion dollars.
To the best and worst performing sectors now: The best performing sector today was Materials gaining 143 points to close at 14,556. The worst performing sector was Consumer Staples falling 59 points to close at 7,802.
The best performing stock in the S&P/ASX200 was Murchison Metals...shares rising 13.49 per cent to close at $1.22. Shares in QBE Insurance and Lynas also closed in positive territory. The worst performing stock was Energy World, shedding 6.48 per cent to close at 50.5 cents. Shares in Infigen and the ASX also closed weaker today.
In commodities, gold is trading at $US1,439 an ounce and Light crude is 26 cents weaker at $US108.21 a barrel.
