After a rollercoaster ride on the market today the Australian sharemarket closed down slightly more than half a per cent. It peaked four points into positive territory in the early afternoon before the RBA interest rate announcement, but soon dropped again after rates were left on hold.
The S&P/ASX200 Index closed 25 points lower at 3,872. On the futures market, the SPI is up 7 points.
Economic news
The Reserve Bank of Australia has once again kept cash rates on hold at 4.75 per cent, for the tenth consecutive meeting.
Meanwhile, Australia’s trade surplus has come in higher than expected. The Bureau of Statistics said the balance on goods and services widened to a surplus of $3.1 billion in August, up from a surplus of $1.8 billion the month before.
The ABS also said building approvals jumped 11.4 per cent to 13,800 units in August, beating expectations of a lift between 1-2 per cent. Over the year to August building approvals were down 5.5 per cent.
Company news
Sundance Resources Limited (ASX:SDL) is expected to be taken over by China’s Hanlong mining within the next two months after the company recommended the $1.65 billion takeover bid. Chairman George Jones said he will do his best to save the troubled Oakajee port development now the takeover is set to happen. Shares in Sundance Resources Limited (ASX:SDL) gained 5.81 per cent on today’s takeover news, closing at 45.5 cents.
Bega Cheese Limited (ASX:BGA) has finalised terms of the offer for the remaining 30 per cent if Tatura Milk at a higher than expected $42 million.
Bega valued the co-op at $53 million four years ago when it paid $38 million for 70 per cent of Tatura. Shares in Bega Cheese Limited (ASX:BGA) have been in a trading halt since Friday, but last traded at $1.77.
The takeover of ConnectEast Group (ASX:CEU) by Horizon Roads is set to go ahead after the Supreme Court of Victoria provided advice that ConnectEast was justified in acting on resolutions related to the takeover that were passed by security holders last month.
BHP Billiton Limited (ASX:BHP), is heading into the next decade with a confident stance. Its iron ore president Ian Ashby told a media tour of its Pilbara operations that China’s going to lead steel production growth well into the next decade. The miner has also forecasted global production to increase in line with high demand, despite a slowdown in the growth rate of the Chinese economy.
Aristocrat Leisure Limited (ASX:ALL) has settled several intellectual property disputes with its US rival, International Gaming Technology (NYSE:IGT), giving the companies a cross-licensing arrangement.
And Rio Tinto Limited’s (ASX:RIO) extended its offer contract with mining services and products supplier Industrea. The new contract’s worth about $100 million in revenue up to 2014, and will be used in the NSW Hunter Valley operations.
Best and worst performers
The best performing sector was utilities, but it lost 2 points to close at 4,178. The worst performing sector was telcos, losing 12 points to close at 1,031 points.
The best performing stock in the S&P/ASX200 was Sundance, as saw earlier, lifting 5.81 per cent. Shares in Perseus and Alacergold also finished the day stronger.
The worst performing stock was White Energy, down 7.22 per cent closing at $1.28.5. David Jones and Kagara also closed lower.
Commodities
Gold is trading at $US1,667 an ounce. Light crude is down $1.07 at $US76.54 a barrel.
