Australian stocks closed ahead, bucking the negative lead from the U.S. overnight. The financial and material sectors lead gains while property stocks were sold off.
The Reserve Bank this afternoon announced that it is leaving interest rates unchanged for the fifth month in a row. Reserve Bank chief Glenn Stevens suggested that the major global economies were approaching a turning point and local data suggests the Australian economy will recover sooner than expected at the beginning of the year.
The S&P/ASX 200 Index closed 36 points firmer at 4,515 while on the futures market, the SPI200’s up 51.
In economic news, the Australian Bureau of Statistics said today that Australia’s current account deficit hit $13.347 billion in the June quarter.
To company news around this afternoon: Nexus Energy (ASX:NXS) plans to raise equity to fund its Longtom gas development located off the Victorian coast. The amount of capital to be raised was not announced and funds raised will allow half the project to be sold to AED Oil once the gas facility has been built. Completion of Longtom is now expected by mid October and as at June 30, the costs to complete works were valued at $63 million. Nexus Energy shares last traded at $0.395.
Shares in Elders (ASX:ELD) have been placed in a trading halt because the company was one of eight companies that failed to file their earnings reports before the official close of the reporting season last night. The company asked the Australian Securities Exchange to suspend trading as it finalised details of a planned $400 million capital raising, which it had previously announced. The capital raising is expected to be offered at a 20 percent discount to the company's last traded share price of $0.39.
Also making news today: Iron Road (ASX:IRD) shares jumped today as the iron ore miner announced that Coffey Mining had completed an exploration target at the Warramboo Iron project and found a substantial resource that the company is now looking to mine and export.
Beaconsfield Gold’s (ASX:BCD) major shareholder, Malaysia Smelting Corporation, is planning on selling its 22.1 percent share in the company so that it can focus on its core business.
Taking a look at some of the stories covered in our earlier reports: Qantas (ASX:QAN) says total passenger numbers increased 4.6 per cent in July compared to a year ago, due to heavily discounted fares and also said it has hedged 80% of its fuel requirement at $US89 a barrel.
United Group (ASX:UGL) said its expects to bank $162 million each year from its share in the Metro Trains Melbourne over eight years.
Now to the best and worst performers: The best performing sector at close was the Financials excluding the Real Estate Investment Trust index, up 79 points to 5,289; while the worst performing sector was the Real Estate Investment Trust index; down 14 points to 861.
The best performing stock in the S&P/ ASX200 was Transpacific Industries and shares jumped 12.13 per cent to $1.525. Atlas Iron and PMP shares also gained.
The worst performing stock was Avoca Resources as it reported a $16.3 million loss for the 2009 financial year and shares fell 6 per cent to $1.645. Shares in APN News & Media and Dominion Mining also closed lower.
In commodities, gold is trading at $955.30 U.S an ounce and light crude is up 34 cents at $70.30 U.S a barrel.
