Australian shares jumped as they opened but lost ground throughout the session and closed just mildly higher. Property and material sectors were higher today while the telecommunications shares were hit as the government announced reforms to the regulation of the telecommunications industry which will see Telstra forced to split its businesses up.
The S&P/ASX 200 Index closed 9 points higher at 4,540 while on the futures market, the SPI200’s up 18.
The economic news of the day was: The release of the Reserve Bank’s minutes which showed that the bankers are not overly keen to see interest rates go up in the short term. The minutes said they believed the global economy was improving, but that ``an important question'' was whether the improvement would be sustained or whether it was mostly the temporary effect of fiscal and monetary stimulus efforts.
Company news around this afternoon was Telstra related: Regional pay TV operator Austar United (ASX:AUN) shares were boosted on the Telstra news because the government may force Telstra to sell its 50% stake in Austar’s rival Foxtel. The takeover prospects for the industry sent Austar’s shares 4.62% higher to $1.245.
Consolidated Media (ASX:CMJ) shares also benefited from the Telstra news. Consolidated owns 25% of Foxtel and Telstra may be forced to sell its stake, which boosted Consolidated Media shares today, as they gained 2.03% to $3.01.
Also making news today: Small cap gold explorer Focus Minerals (ASX:FML) shares jumped as it reported its first profit of $3 million.
Beijing-based company Sino Gas & Energy Holdings (ASX:SEH) listed on the ASX today and shares slumped on their trading debut. The company has natural gas prospects in China and was only the second company to list on the Aussie bourse since the global meltdown.
Some stories covered in our earlier reports: Woolworths (ASX:WOW) says 15,000 jobs will be created in Victoria over the next seven years as the company moves its way into the hardware sector.
BHP Billiton (ASX:BHP) says it expects to see a more predictable demand for its products but does not expect a return to the same levels seen before the global financial crisis.
The best performing sector at close was the Consumer Discretionary index, up 24 points to 1,551; while the worst performing was the Telecommunications index - dragged down by Telstra; which lost 43 points to 1,089.
The best performing stock in the S&P/ ASX200 was Valad Property and shares jumped 12.5 per cent to 13.5 cents. Macmahon Holdings and Harvey Norman also gained.
The worst performing stock was Lynas Corp and shares fell 5 per cent to 66.5 cents. Shares in and FKP Property and Telstra also declined.
In commodities, gold is trading at $999.35 U.S an ounce and since this morning light crude is down 9 cents at $68.77 U.S a barrel.
