The Australian share market has closed the session flat today, gains in the miners overshadowed by losses from the banks and energy stock’s. A holiday shortened week caused some caution among investors. And RBA Governor Glenn Stevens has flagged further rate rises to come saying that interest rates have been too low and could not be sustained at previous levels.
The S&P/ASX 200 Index finished flat at 4,897, while on the futures market, the SPI200 is down 3.
In economic news: Rising interest rates and the end of first homebuyer incentives has seen a drop in new home sales in February. According to figures released by the Housing Industry Association, new home sales slumped 5.2% in February after rising 9.5% in January.
To company news around this afternoon: Telstra Corporation Ltd (ASX:TLS) has had a re-shuffle of management announcing some key changes to its executive team in the hopes of better aligning its leadership structure and strategic priorities. The Telco confirmed that company veteran and Big Pond chief Justin Milne has resigned to pursue other interests. Robert Nason, former Tab Corp executive, is to have his role expanded to include responsibility for corporate strategy, mergers and acquisitions and the program office. And Kat McKenzie has been appointed to the role of chief marketing officer from her current role of managing director of strategic marketing. CEO David Thodey says the changes are aimed at putting the right people and processes in place. Shares in Telstra closed flat at $3.06.
Internet service provider iiNet Ltd (ASX:IIN) says it has entered into a binding agreement to acquire Netspace for $40 million. The company says the acquisition will lift its market share to 12.4%, towards its target of 15%, with an increase of over 70,000 broadband customers to more than 520,000 broadband customers. iiNet says it expects the transaction to be earnings per share accretive from the first full year and generate over $70 million of revenue and $8 million of earnings before interest, tax, depreciation and amortisation in fiscal 2011 before synergies. The company says the acquisition will be 100% debt funded with completion expected by the end of April, 2010. Shares in iiNet closed 6.94% higher at $2.62. Also making news: Project development and contracting company Leighton Holdings Ltd (ASX:LEI) has sold its HQ South Tower in Brisbane for $94 million to AFIAA - the investment foundation of 18 Swiss pension funds.
Regional lender Bank of Queensland Ltd (ASX:BOQ) has signed an exclusive agreement to conduct due diligence for the potential purchase of CIT Group Australia and New Zealand’s vendor finance business.
PanAust Ltd (ASX:PNA) directors have approved a gold and silver mining operation in Laos following a successful feasibility study.
And Ausdrill Ltd (ASX:ASL) has announced a capital raising of $103.67 million to fund the growth of the company following its acquisition of drilling and blasting services firm Brandrill.
In the best and worst performers: The best performing sector at close was the Real Estate Investment Trust index, up 5 points at 872. The worst performing sector was the Health Care index; closing 76 points lower at 9,117.
The best performing stock in the S&P/ ASX200 was Challenger Financial Services, shares rose 4.55% to $4.37. Shares in Panoramic Resources and Virgin Blue also closed higher today.
The worst performing stock was Energy World Corp, shares fell 6.06% to $0.465, while shares in Linc Energy and David Jones also closed lower today.
In commodities, gold is trading at $1,107.10 U.S an ounce and light crude is up $0.38 to $80.38 U.S a barrel.
