RBA rates unchanged as ASX surges above 6000: Aus shares close 1.02% higher

Market Reports

by Kathy Skantzos

It has been a very positive day of trade for the Australian share market. After opening in the black the local bourse gained momentum early on and broke through 6000 points for the first time since the Global Financial Crisis (GFC). The market was not affected by the Reserve Bank’s expected decision to keep interest rates unchanged on Melbourne Cup Day.

The Energy sector charged ahead along with Materials, while Telcos fell short. Bluescope (ASX:BSL), Fortescue (ASX:FMG) and BHP (ASX:BHP) pushed Materials up and Beach Energy charged up more than 5 per cent today to lift the Energy sector. The banks have also performed well, with ANZ (ASX:ANZ), Commonwealth (ASX:CBA) and NAB (ASX:NAB) all higher. After trading ex-dividend today, shares in Macquarie Group (ASX:MQG) fell nearly 1.3 per cent, while Platinum Management (ASX:PTM) pulled the Financial sector up.

At the closing bell the S&P/ASX 200 index closed 61 points higher, or 1.02 per cent, to finish at 6,014.

The value of trades was 5.4 billion on volume of 632 million shares at the close of trade. The top three stocks by value were BHP Billiton Limited (ASX:BHP), Macquarie Group (ASX:MQG) and Rio Tinto (ASX:RIO).

On the futures market the SPI is 65 points up.

Asian markets 

Japan’s Nikkei has added 1.6 per cent, Hong Kong’s Hang Seng has added 1.2 per cent and the Shanghai Composite has gained 0.6 per cent.

Local economic news

The Reserve Bank announced today that interest rates remain unchanged at 1.5 per cent, as expected. Conditions in the global economy are continuing to improve according to the RBA, with forecast for growth in the Australian economy largely unchanged. Governor of the Reserve Bank Philip Lowe gave a positive outlook for business conditions in his statement, and commented non-mining business investment has improved.

Company news 

Emeco (ASX:EHL) has announced the opening of its retail entitlement offer today to raise approximately $80 million. The new shares are offered at 21 cents a share. The funds will be used for the acquisition of Force Equipment which will be purchased for $69.8 million. The offer will close on Friday 17 November with new shares issued and dispatched at the end of this month. Shares in Emeco (ASX:EHL) closed 3.85 per cent lower at $0.25.

Suncorp Group (ASX:SUN) will no longer be proceeding with its appeal of the New Zealand Commerce Commission’s decision to potentially buy Tower (ASX:TWR).

Elk Petroleum (ASX:ELK) has completed the purchase of Nasdaq-listed Resolute Energy Corporation, which holds the majority ownership at the Aneth Oil Field in North America.

Whitehaven Coal (ASX:WHC) has forged a deal to buy the remaining 30 per cent stake in its Tarrawonga mine in New South Wales.

Best and worst performers

The best performing sector was Energy adding 2.7 per cent to close at 10,446.
The worst performing sector was Telcos, shedding 0.3 per cent to close at 1,247 points.

The best performing stock in the S&P/ASX 200 was Beach Energy (ASX:BPT) rising 6.42 per cent to close at $1.16. Shares in Platinum Asset Management (ASX:PTM) and Bluescope Steel (ASX:BSL) also closed higher.

The worst performing stock in the S&P/ASX 200 was the A2 Milk Company (ASX:A2M) dropping 4.9 per cent to close at $6.80. Shares in Harvey Norman (ASX:HVN) and Macquarie Group (ASX:MQG) also closed lower.

Commodities

Gold is trading at $US1,280 an ounce.
Light crude is $1.60 up at $US57.24 barrel.
One Australian dollar is buying 76.82 US cents.