Aussie shares have closed the session flat today recovering from earlier lows as banks and mining stocks clawed back some ground lost this morning on profit taking.
RBA Governor Glenn Stevens has pointed towards further interest rate hikes to come as the economy continues to strengthen. Speaking in Shepparton, Victoria, today Mr Stevens said if downside possibilities do not materialise, the task ahead is likely to be one of managing a fairly robust upswing. Part of that task will, clearly, fall to monetary policy.
The S&P/ASX 200 Index is down 8 points to finish at 4,631. On the futures market, the SPI200 is down 17 points.
To company news: Financial Services firm Australian Unity has bought Westpac Banking Corp’s (ASX:WBC) property funds division for an undisclosed sum. According to Reuters, the deal adds around $1.5 billion to Australian Unity’s $10.4 billion in funds under management. Shares in Westpac closed 0.09% higher at $23.43.
Gold miner Resolute Mining Ltd (ASX:RSG) says it has raised $40 million to be used primarily to close out the company’s gold hedge book. Resolute says its hedge book counterparties, Barclays Capital and Investec, have agreed to neutralise, through forward gold purchases, the portion of the hedge book not closed out with the proceeds from the equity raising. CEO Peter Sullivan says the removal of the hedge book will provide the company with full gold price exposure and significantly improve its operating cash flows as the company continues to grow its business. Shares in Resolute Mining closed 4.58% stronger at $1.37.
Also making news: Toro Energy Ltd (ASX:TOE) is a step closer to developing its Wiluna Uranium Project in Western Australia after receiving the green light from the Environmental Protection Authority of WA.
Metallica Minerals Ltd (ASX:MLM) shares soared today after the explorer said an initial scoping study into its planned nickel-cobalt and scandium project northwest of Townsville in North QLD, deemed the project to be economically and technically robust.
MAp Group Ltd (ASX:MAP) says Sydney Airport recorded a record number of travellers through its doors in August, with close to 3 million passengers for the month.
And James Hardie Industries SE (ASX:JHX) says it will appeal a Federal Court decision to uphold an ATO ruling that its subsidiary RCI owes back taxes and interest.
In the best and worst performers: Majority of sectors closed in the red today. The best performing sector at close was Telco Services with the index up 5 points to 954. The worst performing sector was Materials with the index down 43 points to 12,474.
The best performing stock in the S&P/ ASX200 was Perseus Mining shares were 8.33% higher at $3.25. Shares in Linc Energy and Fleetwood Corp also closed higher.
The worst performing stock was Sundance Resources with shares falling 4.08% to close at $0.23. Shares in TPG Telecom and Primary Health Care closed weaker today, Primary going ex-dividend.
In commodities, gold is trading at $1282 US an ounce. And light crude is up $0.08 at $73.74 US a barrel.
