The Australian share market improved this afternoon after a flat lunchtime, spurred on by miners and banking stocks leading the gains.
The S&P/ASX200 Index is up by 34 points to close at 4,684. On the futures market, the SPI is up by 18 points.
In economic news, the Reserve Bank of Australia is flagging higher rates on inflation after releasing the minutes of its May board meeting. The bank said interest rates must be set for the economy as a whole; higher interest rates are likely if inflation remains consistent; and it would assess the outlook for growth and inflation at future meetings.
In company news, Gloucester Coal (ASX:GCL) came out of its trading halt and into a sharp drop today, with shares slumping by more than 10 per cent. Some analysts told media outlets the dive was because the miner’s discounted $230 million equity issue, which is to pay for the acquisition of Donaldson Coal and Monash, was too difficult to digest. Shares in Gloucester closed the day 8.82 per cent lower at $8.90.
And the CEO of Qantas Airways (Public, ASX:QAN), Alan Joyce, told a press conference today that falling oil prices won’t insulate passengers from further rises in the fuel surcharge, and that any costs linked to a wider carbon tax will be passed on to the consumers. The airway also announced a new Frequent Flyer partnership with Optus, as well as a new, simplified fare structure for Jetstar. Shares in Qantas rose 0.48 per cent today, to close at $2.11.
Also making news, Charter Hall Retail REIT (Public, ASX:CQR) has been shopping - snapping up eight regional and neighbourhood shopping centres, previously owned by Woolworths (ASX:WOW). The shopping spree cost the real estate investment trust, in a joint venture with Telstra Super, $266 million. The company said it is investing in quality, anchored shopping centres.
And analysts from across the board have agreed that Whitehaven Coal (ASX:WHC) will see high trading volumes and turnover after Monday’s harsh selloff. The Australian Financial Review reportstoday that analysts are tipping Whitehaven management to turn its attention to reaffirming its’ ‘growth pipeline’.
Fairfax Media (ASX:FXJ) has this afternoon confirmed it will be selling its metro and regional radio stations in the wake of a profit warning.
And James Hardie Industries (ASX:JHX) has announced it plans to buy back five per cent of its shares over the coming year, as part of a new capital management policy.
The best performing sector was Materials, up by 174 points to close at 13,471. The worst performing sector was Consumer Discretionary, which was still up by one point to close at 1,410.
The best performing stock in the S&P/ASX200 was Kagara, shares rising 9.62 per cent to close at $0.57. Shares in Cudeco and Gunns also closed in positive territory.
The worst performing stock was Paperlinx, shedding 4.88 per cent to close at 19.05 cents. Shares in White Energy and Karoon Limited also closed weaker today. In commodities, gold is trading at $US1,495 an ounce and Light crude is up by 12 cents at $US97.49 a barrel.
