Following weak leads the Australian share market spent most of the day in the red. But, after the the Reserve Bank of Australia announced it will keep interest rates steady the local bourse reversed earlier losses to close flat.
The S&P/ASX200 Index closed 3 points lower at 4,566. On the futures market, the SPI is down 4 points.
Economic News:
The Reserve Bank of Australia announced it will keep the official cash rate on hold at 4.75 per cent. It is the seventh straight month rates have remained unchanged.
Company news:
Shares in Macquarie Group Ltd (ASX:MQG) fell today after Citigroup downgraded its rating on the stock to sell. Citigroup has also cut its price target for Australia’s largest investment bank to $30.50, from $38. Falling market share in M&A, increasing expansion costs and pressure from a rising Australian dollar are among the reasons Citigroup has given for the downgrade. Shares in Macquarie Group dropped 2.14 per cent today, closing at $32.00.
Extract Resources Ltd (ASX:EXT) says its Husab uranium project in Namibia is now established as the fourth largest uranium deposit in the world. Based on an updated resource estimate the company reports its total global resource has increased 33 per cent since August 2010. Extract intends to maintain the pace of its drilling program and says further exploration potential remains. Shares in Extract Resources fell 1.16 per cent today, closing at $7.70.
Telstra Corporation Ltd (ASX:TLS) is edging closer to finalising its $11 billion deal for the National Broadband Network. NBN Co’s chairman Harrison Young has told The Australian Financial Review that the “very complicated deal” will be revealed next week.
Leighton Holdings Ltd (ASX:LEI) has announced that its wholly owned subsidiary Thiess has been awarded a $222 million contract extension to continue mining operations at a coal mine east of Mudgee in New South Wales.
Virgin Blue Holdings Ltd (ASX:VBA) and Singapore Airlines have established a long-term partnership to codeshare on each other's flights.
The grocery, liquor and hardware wholesaler Metcash Ltd (ASX:MTS) has posted a 6.1 per cent improvement in its full year net profit, coming in at $241.4 million.
Best and worst performers:
The best performing sector was Telco Services, adding 19 points to close at 1,053. The worst performing sector was Energy, losing 157 points to close at 15,773. The best performing stock in the S&P/ASX200 was Kingsgate Consolidated shares rose 13.57 per cent to close at $8.62. Shares in Infigen Energy and Downer EDI also closed in higher today. The worst performing stock was Hastie Group, falling 6.82 per cent to close at $0.205. Shares in Aquila Resources and Bow Energy also closed lower today.
Commodities:
Gold is trading at $US1,546 an ounce. Light crude is down $0.43 cents at $US98.58 a barrel.
