The Australian share market slipped into the red today, falling from earlier gains to close flat after the RBA announced it would keep its cash rate on hold. Energy stocks lifted, fuelled by the rising oil price and the major miners closed higher, despite escalating concerns over tropical Cyclone Yasi, expected to cross the north Queensland coast as a severe category four storm within days.
The S&P/ASX200 Index fell 2 points to close at 4,752. On the futures market, the SPI is 2 points lower.
Economic news: The Reserve Bank has kept interest rates on hold at 4.75 per cent, while it takes into consideration the economic impact of the recent floods in Queensland and other parts of the country. The Australian Bureau of Statistics has reported the house price index rose 0.7 per cent for the December quarter, which was an improvement from the previous quarter’s fall of 0.3 per cent. Among the major cities, Canberra led house price gains with a 1.9 per cent increase for the December quarter, ahead of Sydney's 1.6 per cent increase and Melbourne's 1.3 per cent increase.
Company news: Global Miner Rio Tinto Ltd (ASX:RIO) has shut its Hail Creek coal mine in central Queensland as Cyclone Yasi moves in on the flood battered state. A Rio spokesperson told the Australian Associated Press that the current conditions are shaping as a much larger and faster moving system which could impact a wider area. Rio says that all of its employees have left the site with a skeleton crew of volunteers left to monitor essential services only. Shares in Rio Tinto closed 0.07 per cent higher today to close at $84.11.
Leighton Holdings Ltd (ASX:LEI) has announced that a joint venture with its wholly owned subsidiary Theiss and Sedgman Ltd (ASX:SDM) has scored a $145 million contract to expand the coal handing and preparation plant at Lake Vermont in central Queensland. Leighton says the contract is to design, procure, construct and commission the expansion to produce four million tonnes of additional coal per annum. Shares in Leighton Holdings dipped 0.16 per cent today to close at $31.50.
Brockman Resources Ltd (ASX:BRM) has been dealt a blow by the Takeovers Panel, siding with Brockman’s suitor Wah Nam International Holdings and claiming Wah Nam’s conduct had given rise no unacceptable circumstances.
Shares in Cougar Energy Ltd (ASX:CXY) plunged over 50 per cent today, following news the company will appeal a State Government decision to permanently shut down its underground coal gasification project in Queensland.
Rail freight operator QR National (ASX:QRN) has temporarily suspended operations on two of its rail networks in Queensland ahead of the expected wild weather conditions.
Asciano Group (ASX:AIO) has secured a $200 million deal with Anglo American Metallurgical Coal Pty Ltd for coal haulage in Queensland.
In the best and worst performers: The best performing sector at close was Energy, with the index rising 123 points to close at 16,039. The worst performing sector was Health Care, the index falling 122 points to close at 8,881. The best performing stock in the S&P/ASX200 was Beach Energy shares rose 6.33% to close at $0.84. Shares in Lynas Corporation and Mt Gibson Iron also advanced today. The worst performing stock was Gunns shares fell 13.91% to close at $0.495. Shares in Hastings Diversified Utilities Fund and AWE also closed weaker today.
In commodities, gold is trading at $US1,337 an ounce. Light crude is down $0.06 to $US92.13 a barrel.
