It was a strong start to trading, with the Australian share market hitting high of 5,390 points at midday. The Energy space did the bulk of the heavy lifting this session.
However, after the Reserve Bank released its decision to keep interest rates on hold the market sold off. The S&P/ASX 200 index closed 11 points higher to finish at 5,371.
The value of trades was $5 billion on volume of 789 million shares at the close of trade. The top three stocks by value were Spark Infrastructure Group (ASX: SKI), BHP Billiton Limited
(ASX:BHP), and Commonwealth Bank of Australia
(ASX:CBA).
On the futures market the SPI is up 14 points.
Economic newsThe Reserve Bank, as expected, has kept interest rates at 1.75%. RBA governor, Glenn Stevens, said recent economic data indicates overall growth is continuing (but at a slower pace than expected) and that there has been a “very large decline in business investment”.
Company newsCharter Hall Group
(ASX:CHC) is preparing to list a new real estate investment trust on the ASX. The company says that its “Long WALE REIT” portfolio will contain industrial, office and hospitality assets worth over $1 billion, and a weighted average lease expiry in excess of 12 years. The lead managers for the transaction will be JP Morgan and UBS. Shares in Charter Hall closed up 0.19% at $5.23.
Mayne Pharma Group Limited
(ASX:MYX) has been granted FDA approval to market and sell a heart disease medication in the US.
Avita Medical Limited
(ASX:AVH) has entered an agreement with Mintcare to distribute its skin regeneration technology in Malaysia.
Cooper Energy Limited
(ASX:COE) has sold its stake in an Indonesian oil-producing asset for $5.9 million – to two oil and gas companies based in Canada and Singapore.
Best and worst performersThe best performing sector was Energy adding 1.7 per cent to close at 8,344. The worst performing sector was Consumer Staples, losing 1 per cent to close at 8,389 points.
The best performing stock in the S&P/ASX 200 was Liquefied Natural Gas, rising 13.1 per cent to close at $0.82. Shares in Western Areas and Santos also closed higher.
The worst performing stock was Greencross Limited, dropping 7.7 per cent to close at $7.36. Shares in Sky Networks and Nine Entertainment Group also closed lower.
CommoditiesGold is trading at $US1,243 an ounce.
Light crude is $1.07 up at $US49.69 a barrel.
The Australian dollar is buying $US0.7434.
