The Aussie market closed mildly lower today as property, energy and materials shares dragged on gains made by utility stocks.
The news of the afternoon is the RBA’s decision to leave interest rates unchanged at a 3% cash rate. RBA Governor Glenn Stevens said that there are areas of the economy that are recovering which was more positive than previous comments.
The S&P/ASX 200 Index closed 17 points weaker at 3,767 while on the futures market, the SPI200’s down 5.
In economic news: the Fair Pay Commission has decided not to increase the minimum wage, saying the uncertain times mean that it is not the time to risk the jobs of Australia’s 1.3 million low-paid workers.
To company news around this afternoon, Origin Energy has signed an agreement with the Australian Taxation Office that will minimize its compliance costs. The agreement involves Origin taking a pro-active approach toward GST obligations and ATO assisting Origin in reducing GST compliance processes. Origin said it is only the second corporation in Australia to achieve this type of arrangement with the ATO, which required a detailed review of Origin's GST compliance and corporate governance systems. Origin shares declined 0.14% to $13.80 today.
As part of Kagara’s $262 million rights issue, China’s Guangdong Foreign Trade Group is set to take a 15 per cent stake in the copper and zinc miner miner, which could increase to 19.99 per cent if it subscribes for more shares in August. China’s National Development and Reform Commission has approved the deal and it will now be assessed by the Foreign Investment Review Board. Kagara shares closed 2.84% lower at $0.685.
Also making news today: Dioro Exploration has advised its shareholders to take no action after its biggest shareholder Avoca Resources’ (ASX:AVO) sweetened takeover bid yesterday.
Junior uranium explorer Uranium Equities announced it has entered into its third joint venture with the world's largest uranium miner, Canada's Cameco. This agreement is for the exploration of Uranium Equities' Rudall River in the East Pilbara.
Taking a look at some of the stories covered in our earlier reports: Agricultural company ABB Grain (ASX:ABB) has downgraded its 2009 earnings guidance because of difficult market conditions and slow demand for Asian malt and Australian rural produce.
Online betting company Centrebet International (ASX:CIL) says it expects its earnings for fiscal 2009 to be at the upper end of its earlier guidance at between $10 and $11 million.
Now to the best and worst performers: The sector posting the biggest gain today was the Utilities index which rose 105 points to 3,947; while the worst performing sector at close was the Real Estate Investment Trust index; down 15 points to 723.
The best performing stock in the S&P/ ASX200 was IOOF Holdings shares rose 7.4 per cent to $4.21. Shares in Australand Property and Sino Gold also closed higher.
The worst performing stock was Boart Longyear with shares falling 9.62 per cent to $0.235. Shares in Platinum Australia and Minara Resources also closed lower.
In commodities, gold is trading at $924.85 U.S an ounce and light crude oil is up 7 cents since this morning at $64.12 U.S a barrel.
