Despite an earlier rally the local share market has closed the day flat after losing momentum in afternoon trade.
In the RBA’s minutes from its October monetary policy meeting, the central bank has reiterated that interest rates will need to rise at some point to keep the economy in check with inflation expected to rise on the back of a booming commodities industry.
The S&P/ASX 200 Index is 4 points higher to finish at 4,656. On the futures market, the SPI200 is up 19 points.
To company news: Paladin Energy Ltd (ASX:PDN) has posted a fall in production and sales for the September quarter. The uranium miner produced 1.36 million pounds of uranium oxide in the three months to September 30, a drop from the 1.44 million pounds produced in the previous quarter. Sales totalled 1.043 million pounds of uranium oxide for the quarter, generating revenue of US$48.4 million, representing an average sales price of US$46.44 a pound. The average sales price in the June quarter was US$55.50 a pound, Paladin saying the lower average sale price in the September quarter reflects variations in quarterly delivery volumes in some sales contracts and the predominance of spot sales. Shares in Paladin Energy closed 1.24% lower at $3.97 today.
Mid-tier Southern African focused coal miner Continental Coal Ltd (ASX:CCC) has secured $61 million to fund development costs of the company’s third export focused coal mine at the Penumbra Underground Project in South Africa. The funds have been raised via a $10 million convertible note and a US$30 million equity placement to institutional investors in Europe, South East Asia and Australia. Continental also secured a US$20 million coal loan facility from coal customer EDF Trading as an advance on future deliveries of coal. The funding will also go towards completing the acquisition of fellow South African coal miner, Mashala Resources. Shares in Continental Coal closed 2.6% higher at $0.079 today.
Also making news: ANZ Banking Group Ltd (ASX:ANZ) says it expects the recent strength in the Aussie dollar against the greenback to continue for some time yet. CEO Mike Smith has told an audience in Melbourne today that the Australian dollar is unlikely to fall back to US$0.85 anytime soon with demand for commodities and the interest rate keeping the dollar high.
Brewer Foster’s Group Ltd (ASX:FGL) is to release three new beer brands. According to a report in The Australian today, the new brands will include Pure Blonde White, a Belgian style wheat beer, Carlton Fusion Dry Black, a flavoured beer and another beer in Qld under Foster’s Great Northern Brewing Company brand.
Oz Minerals Ltd (ASX:OZL) says it’s on track to meet its full year production guidance, despite having recorded a fall in output in the last quarter.
And Macmahon Holdings Ltd (ASX:MAH) has forecast a break even result for the half year to December 2010 following a disappointing performance from its construction business.
In the best and worst performers: The best performing sector at close was Utilities with the index up 66 points to 4,484. The worst performing sector was Telco Services with the index closing down 12 points to 914.
The best performing stock in the S&P/ ASX200 was Gunns shares were 21.88% higher at $0.78. The company today says it welcomes the historic Tasmanian Forest Statement of Principles which sets out a framework to reach an agreement that would eventually end native forest logging in Tasmania and transition to a plantation-based industry. The Statement also recognises the importance of a pulp mill as part of the creation of a strong, sustainable, plantation timber industry. Shares in Elders and Prime Infrastructure Group also closed higher.
The worst performing stock was Macmahon Holdings shares dropping 21.01% to $0.545. Shares in iSOFT Group and Ausenco also closed weaker today.
In commodities, gold is trading at $1366 US an ounce. And light crude is down $0.42 at $82.66 US a barrel.
