The Australian share market has extended its gains and closed higher after the Reserve Bank announced it was keeping interest rates on hold, as widely expected. All the major miners and banks closed higher with Rio Tinto being the strongest performer of the miners and Westpac of the Big Four banks.
The S&P/ASX200 Index is up 38 points to close at 4,727. On the futures market, the SPI is up 33 points.
Economic news: As predicted by most economists, the Reserve Bank has left interest rates on hold at 4.75 per cent. The RBA says it considers the current monetary policy setting appropriate for the current economic outlook. It also noted that inflation was set to remain steady for the next few quarters, suggesting the central bank is not in a hurry to raise rates.
Leighton Holdings Ltd’s (ASX:LEI) subsidiary John Holland has picked up a $550 million contract to build a rail line and undertake various other works in New South Wales. The contract is with the NSW government’s Transport Construction Authority and will include design and construction of a railway line for Sydney’s South West Rail Link as well as two new stations and a train stabling yard. Work is expected to commence early 2011 and is due to be completed in 2015. Shares in Leighton closed up 1.97 per cent at $33.20.
Westfield Group Ltd (ASX:WDC) has raised $2 billion for its Westfield Retail Trust and says the proceeds will be used to pay down drawn amounts under an acquisition facility for the offering. Westfield announced a restructuring to create the Retail Trust in November and said it would be listed separately. The Retail Trust will also become the joint venture partner in 54 of Westfield Group’s shopping centres across Australia and New Zealand. Shares in Westfield Group closed 0.41 per cent at $12.33.
Fairfax has reported that the Reserve Bank of Australia is due to ask National Australia Bank Ltd (ASX:NAB) to explain the technical problems it suffered last month as the processing glitch could have severely affected system liquidity.
Silex Systems Ltd (ASX:SLX) is raising $89 million at $5.40 a share in order to fund an expansion of its solar system division., in a fully underwritten deal through JP Morgan.
Stockland Group Ltd (ASX:SGP) has secured a $4 billion site in Melbourne, the company’s largest ever individual land deal.
QR National Ltd (ASX:QRN) says it remains on track to achieve its published earnings forecast despite heavy rain and flooding which caused the newly-listed rail freight operator to close parts of its rail lines and network systems.
In the best and worst performers: The best performing sector at close was Materials, with the index rising 164 points to 13,960. The worst performing sector was Telco with the index dropping 5 points to 961. The best performing stock in the S&P/ ASX200 was Platinum Australia as shares lifted 11.96 per cent to close at $0.515. Shares in Panoramic Resources and Avoca Resources and also closed higher. The worst performing stock was Hastie Group as shares fell 4.64 per cent to close at $0.925. Shares in Goodman Fielder and Infigen Energy also fell today.
In commodities, gold is trading at $US1,422 an ounce and light crude is down $0.41 cents at $US88.97 a barrel.
