Australian shares jumped as they opened but spent the rest of the day declining and finished mildly higher. Metal stocks improved on higher prices.
The S&P/ASX 200 Index closed 18 points higher at 4,592 while on the futures market, the SPI200’s up 17.
The economic news the Reserve Bank of Australia increased interest rates this afternoon. The cash rate was raised by a quarter of a percent to 3.25%. The move is a sign that the Reserve Bank sees a recovery in many parts of the economy. All four major banks have said their rates are under review.
To company news around this afternoon: Crown (ASX:CWN) plans to sell two Southbank properties that it currently uses as training facilities. The casino operator is currently building another $10 million training facility. Crown hopes the real estate will be bought to build high rise residential developments or commercial real estate which will raise cash for the company. Crown shares declined 0.12% to $8.58 today.
Iron ore explorer Polaris Metals (ASX:POL) said that Singapore based Lion-Asia Resources has announced its intention to outbid a takeover offer by Australian company, Mineral Resources. Lion-Asia Resources said it plans to make an off-market all cash offer of 60 cents per share for the rest of the stock it doesn’t already own and shares in Polaris Metals jumped 18.63% at $0.605.
Also making news: Coffey International (ASX:COF) has been awarded a funding increase of US$40 million for its contract for the Tatweer Project which helps build financial management, human resources and IT systems the Iraqi civil service. The total value of the project now stands at US$340 million.
Morgan Stanley analysts have said that Telstra (ASX:TLS) may receive $6 billion from the government by agreeing to sell its fixed-line assets.
Taking a look at some of the stories covered in our earlier reports: GrainCorp (ASX:GNC) has agreed to acquire the world’s 4th largest commercial malt manufacturer United Malt Holdings group for $757 million.
Brambles (ASX:BXB) said today that CEO, Mike Ihlein, would retire in November, and would be replaced by Tom Gorman, who is currently the head of the European CHEP pallet business. The pallet supplier also said it plans to spend $110 million over the next few years to improve its wooden pallets and to combat a rival plastic pallet.
In the best and worst performers: The best performing sector at close was the Materials index, up 90 points to 10,956 while the worst performing index by percentage points was the Consumer Discretionary index; which lost 16 points to 1,570.
The best performing stock in the S&P/ ASX200 was St Barbara and shares jumped 10.91 per cent to $0.305. Shares Mirabela Nickel and Virgin Blue in also gained.
The worst performing stock was Lynas Corp and shares fell 5.84 per cent to $0.645. Shares in Fortescue Metals fell on concerns it may fail to get $6 billion in funds from Chinese lenders for expansion and David Jones shares also lost ground.
In commodities, gold is trading at $1,020.45 U.S an ounce and since this morning light crude is up 24 cents at $70.65 U.S a barrel.
