Australian stocks wiped out morning gains and closed lower as the banks suffered a sell off.
The minutes of the Reserve Bank’s recent meeting were released today and showed that the RBA could lift rates again in December as it said that if economic conditions continue to evolve as expected, a further gradual adjustment in the cash rate would most likely be appropriate over time.
The S&P/ASX 200 Index closed 26 points lower at 4,729 while on the futures market, the SPI200’s down 23.
To company news around this afternoon: AMP (ASX:AMP) Chief Executive Craig Dunn said today that its bid for AXA Asia Pacific (ASX:AXA) was compelling and made strategic sense. He also said the price it paid had to be economically responsible, cooling expectations for a sweetened takeover offer which caused AXA Asia Pacific’s shares to decline today while AMP shares lost 1.72% to $6.30.
National Australia Bank (ASX:NAB) is challenging a $479 million tax bill after it received six amended assessments in December last year and May 2005. The ATO amended the assessments because it does not believe the bank should be able to claim deductions for interest on capital instruments, known as exchangeable capital units. National Australia Bank shares are flat at $28.50.
Also making news: Cape Lambert Iron Ore (ASX:CFE) says that it plans to float its Lady Annie copper mine project on the Australian Stock Exchange as Q Copper Australia and raise $214 million for the project. Cape Lambert bought the project for $80 million in May as a distressed asset.
The Chinese government has given approval for China’s largest steel maker, Baosteel, to buy a 15% stake in Aquila Resources (ASX:AQA) for $285.6 million and up to a total of 19.99%. Australia’s Foreign Investment Review Board (FIRB) approved the transaction in October.
Taking a look at some of the stories covered in our earlier reports: Perpetual Ltd (ASX:PPT) says its funds under management totaled $28.8 billion as at October 31 2009 which is down slightly on the $29.3 billion at the end of September.
Explorer Perilya Ltd (ASX:PEM) has announced a $55 million capital raising to help the company fund additional projects.
In the best and worst performers: The best performing sector at the close was the Utilities index, up 41 points at 4,269. The worst performing by percentage points was the Financials excluding the Real Estate Investment Trust index; which lost 88 points to 5,437.
The best performing stock in the S&P/ ASX200 was Panoramic Resources and shares rose 8.66 per cent to $2.51. Shares in Emeco Holdings and Murchison Metals also improved.
The worst performing stock was Elders as shares lost 5.56% to $0.17. Gunns and Paperlinx shares also closed lower today.
In commodities, gold is trading at $1,136.90 U.S an ounce and since this morning light crude is down 7 cents at $78.83 U.S a barrel.
