The Australian share market closed weaker today as China’s interest rate hike may be on the horizon after Beijing pledged to tighten its monetary policy in 2011. All the major banks and major miners, except Rio Tinto, closed in the red.
The S&P/ASX200 Index is down 27 points to close at 4,670. On the futures market, the SPI is down 33 points.
Economic news: Official figures from the Australian Bureau of Statistics show that there was a bigger-than-expected rise in the number of home loans take out in October, ahead of the Reserve Bank’s interest rate rise in November. Home loan commitments rose by 1.9 per cent in October, beating market forecasts for a flat result. It is the largest increase since May.
Australia’s richest woman Gina Rinehart has extended her media interests and bought a portion of shares in Fairfax Limited (ASX:FXJ). The size and value of the purchase is still unknown, however, media reports say it is worth around $50 million. This is the second time Ms Rinehart has snapped up a stake in a media company, last month she picked up a 10 per cent stake in Ten Network Holdings Ltd (ASX:TEN). Shares in Fairfax closed 1.73 per cent lower at $1.42.
Logistics company Toll Holdings Ltd (ASX:TOLL) has raised $208 million in debt in the United States in a private placement to refinance short term debt in Hong Kong and Singapore. Toll says the notes were raised for terms of five, seven and 10 years at a margin of 180 points over US Treasuries. Shares in Toll Holdings closed 1.3 per cent lower at $6.06.
ANZ Banking Group’s (ASX:ANZ) global head of commodities trading Christophe Renaud has resigned. His departure follows the appointment of Eddie Listorti as global head of foreign exchange and commodities in September.
Rio Tinto Ltd’s (ASX:RIO) coal mines in Queensland have resumed partial operations after heavy rains impacted production and affected around 40 open-cut coal mines in Queensland’s Bowen Basin.
Aston Resources Pty Ltd (ASX:AZT) says it is selling its 15 per cent stake the Maules Creek Coal joint venture project in New South Wales to a subsidiary of Japanese trading house Itochu Corporation.
Salmon farming company Tassal Group Ltd (ASX:TGR) has rejected a takeover bid from private equity group Pacific Equity Partner valued between $263 million to $279 million.
Best and worst performers: The best performing sector at close was Utilities, with the index rising 24 points to 4,469. The worst performing sector was Consumer Discretionary with the index dropping 14 points to 1,511. The best performing stock in the S&P/ ASX200 was Platinum Australia as shares lifted 8.74 per cent to close at $0.56. Shares in Alesco Corporation and Perseus Mining and also closed higher. The worst performing stock was Intrepid Mines as shares fell 6.13 per cent to close at $1.99. Shares in Spotless Group and Eldorado Gold also fell today.
In commodities, gold is trading at $US1,393 US an ounce and light crude is down $1.01 at $US87,68 a barrel.
