The Australian share market closed higher on the back of bargain hunting as investors scooped up previously battered stocks and following the RBA’s decision to keep interest rates on hold this month.
The S&P/ASX 200 Index rose 54 points to finish at 4,276. And on the futures market, the SPI200’s up 56 points.
In economic news: The RBA today announced it would leave rates unchanged at 4.5%.
To company news around this afternoon: CSR Ltd (ASX:CSR) has entered into an agreement to sell its Asian businesses to Rockwoll Group for $128 million. While the agreement does not include CSR’s existing autoclaved aerated concrete plant in Malaysia, Rockwool Group will acquire 100% of CSR’s insulation, panels and trading businesses across the Asian region. This transaction is intended to be completed within the next six months. CSR has worked in Asia for over 25 years and continues to retain interest in the area through their technical insulation business. However, CEO of the CSR building products division Rob Sindel says the company’s core geographic focus remains on Australia and New Zealand. CSR on Monday agreed to sell its sugar and renewable energy business, Sucrogen, to Singapore-based group Wilmar International for $1.75 billion. Shares in CSR closed 0.28% higher at $1.76
According to a report from the Australian Associated Press global miner Rio Tinto (ASX:RIO) has defended its role in closing the mining tax. The mineral resource rent tax was announced last Friday, reducing the final tax rate from 40% to an effective rate of 22.5% for eligible miners. Smaller miners have expressed frustration and disappointment at being left out of the negotiation process. According to AAP head of Rio’s iron ore operations, Sam Walsh, told a meeting in Perth today that while some junior minors may have expressed concern, a lot of others are pleased with what has been achieved. Mr Walsh went on to say he believes the debate over the mining tax had been quite unfortunate, but the outcome now enables the industry to move forward. Shares in Rio Tinto closed down 0.23% at $65.10
Also making news: As part of a $1.1 billion debt program, Westpac Banking Corporation (ASX:WBC) has raised $50 million in debt capital from bond investors.
And according to Reuters, having announced plans to launch a $490 million capital raising, building material supplier Boral Ltd (ASX:BLD) says it will let go, of up to 200 Australian employees.
QBE Insurance Group Ltd (ASX:QBE) has acquired European reinsurance business Secura NV for euro 267 million or $398.8 million.
Macarthur Coal Ltd (ASX:MCC) has upgraded its annual sales volume and profit guidance; for the 12 months to June 30, 2010, the company says it now expects to post profit of between $115 million to $125 million.
In the best and worst performers: The best performing sector at close was the Financials excluding Real Estate Investment Trust index, up 117 points at 4,792. The worst performing sector was the Health Care index flat at 8,050.
The best performing stock in the S&P/ ASX200 was Adelaide Brighton, shares rose 9.29% to $2.94. Shares in Isoft Group and Toll Holdings also closed higher.
The worst performing stock was Mirabela Nickel, shares fell 3.85% to close at $2.00. Shares in Biota Holdings and Iress Market Technology also closed weaker today.
In commodities, gold is trading at $1,209.90 U.S an ounce, and light crude is down $0.15 at $71.99 U.S a barrel.
