The Australian share market has closed lower today following a mixed bag of economic data including worse-than-expected building activity and the Reserve Bank’s decision to keep interest rates on hold.
The S&P/ASX 200 Index finished the day 17 points weaker at 4,413. While on the futures market, the SPI200’s down 28.
In economic news: As widely expected, the central bank chose to keep the official cash rate steady today at 4.5%, citing uncertainties over the global economic outlook. It comes as a welcome breather for borrowers, who have borne the brunt of six rate rises in the past eight months. And in an update on one of our earlier economic reports, data released by the ABS today showed building approvals plunged as much as 15% in April, the most since November 2002.
To company news around this afternoon: Whitehaven Coal Ltd (ASX:WHC) says work to expand production at its mine in the New South Wales Gunnedah Basin may make it a takeover target. Managing Director Tony Haggarty says the coal producer is pressing ahead with the development of its Narrabri mine and is always open to offers. The company’s $350 million mine is due to start first output in the middle of this year and is set to produce about 700,000 metric tons a year in its initial stage. Bloomberg reports that Citigroup Inc has suggested China Shenhua Energy and Peabody Energy may be potential suitors for Whitehaven. Whitehaven Coal shares closed 1.02% higher at $4.95.
Just a day after announcing a slight earnings upgrade, paints maker Wattyl Ltd (ASX:WYL) has been downgraded from an outperform to a neutral position by Macquarie Bank. The valuation has been made based on a recent takeover proposal of $1.30 per share for the company, which Macquarie believes is too low. However, the investment bank says Wattyl’s shares could get a boost if its board recommends the offer from an unnamed suitor, believed to be an international paint maker. Wattyl has previously recommended its shareholders take no action in relation to the takeover bid. Shares in Wattyl closed 0.78% weaker at $1.275.
Also making news: Graincorp Ltd (ASX:GNC) has appointed a new CEO to replace the company’s interim chief Ian Wilton. Alison Watkins, who is currently CEO of private fund manager Bennelong Group, will take the reins from August 9.
Coal seam gas explorer Westside Corporation Ltd (ASX:WCL) says it will expand its alliance with Japan’s Mitsui E&P Australia Pty Ltd to include extra coal seam gas interests in Queensland and to jointly explore Westside’s 50% held permit in the Bowen Basin.
National Australia Bank Ltd (ASX:NAB) and AXA Asia Pacific Holdings Ltd (ASX:AXA) have agreed to extend the period for NAB to satisfy the concerns raised by the Australian Competition and Consumer Commission relating to its proposed takeover of the wealth manager.
And engineering and infrastructure company Downer EDI Ltd (ASX:DOW) says it expects full year profit to be in line with previous guidance despite saying it will book a $70 million pre-tax impairment charge and the need for further funding for its NSW train carriages project.
In the best and worst performers: The best performing sector at close was the Utilities index, up 59 points at 4,091. The worst performer was the Real Estate Investment Trust index; down 11 points at 852.
The best performing stock in the S&P/ ASX200 was APA Group, shares rose 4.89% to $3.65, while shares in MAP Group and Austar also closed higher.
The worst performing stock in the S&P/ASX200 today was Downer EDI, shares dropped 26.95% to $4.58. Shares in Gunns and Virgin Blue also closed weaker today.
In commodities, gold is trading at $1,219.85 U.S an ounce, and light crude is up $0.15 to $74.12 U.S a barrel.
