After another lower start to trade, the market declined throughout the day. The RBA’s decision to keep the cash rate on hold did little for equities, with the market down 1.29 per cent, pulled down mostly by the banks and healthcare stocks.
The S&P/ASX200 Index closed 64 points lower at 4,434. On the futures market, the SPI is down 76 points.
Economic news
Mortgage holders are breathing a sigh of relief after the RBA board today decided to leave the official cash rate unchanged at 4.75 per cent.
ABS Building Approvals show that the total number of dwellings approved fell 3.5 per cent in June 2011, in seasonally adjusted terms, after falling 6.3 per cent in May.
The trend estimate for total dwellings approved fell 1.6 per cent in June 2011 and is now showing falls for eight months.
Company news
Macarthur Coal (ASX:MCC) says it remains in positive talks with Peabody Energy and ArcelorMittal. Its shares have been trading above the $15.50 offer made by both companies. Chief executive Nicole Hollows told a phone briefing for investors, that Macarthur are unsure of the position of its biggest single shareholder, Chinese firm Citic Resources. Shares in Macarthur Coal (ASX:MCC) rose 0.19 per cent to close at $15.86.
And Kathmandu (ASX:KMD) has bucked the weak retail trend, its shares rising by more than six per cent today after it forecast better than expected earnings due to good performances at new stores, as well as favourable weather during its promotional periods. The adventure-wear retailer’s sales for the year to June were up by 25 per cent on the year before. Shares in Kathmandu (ASX:KMD) gained 6.29 per cent to close at $1.86.
Rio Tinto Limited (ASX:RIO) has completed the divestment of its talc business for $310.05 million. In a separate matter the global miner has also planned to apply for special leave to appeal to the High Court in response to a ruling by the Federal Court that ruled a non-union agreement, covering thousands of workers, was invalid.
Telstra (ASX:TLS) has had opposition from Optus to its plan to split its wholesale and retail businesses. Optus says the plan does not go far enough towards levelling the playing field in the communications sector.
Rural Bank, owned by Bendigo and Adelaide Bank Limited (ASX:BEN) is set to join forces with Australia Post to provide deposits and loans through regional post offices.
And Centro Properties (ASX:CNP) may have eight current and former directors banned for between six and 18 months by the Australian Securities and Investment Commission (ASIC), for breaching their duties.
Sectors and stocks
The best performing sector was the real estate investment trusts sector with the index gaining 1 point to close at 792. The worst performing sector was the healthcare, falling 169 points to close at 8,054.
The best performing stock in the S&P/ASX200 was Bow Energy, (ASX:BOW) shares rising 8.48 per cent to close at $1.215. Shares in Sandfire (ASX:SFR) and Regis Resources Limited (ASX:RRL) also closed in positive territory today.
The worst performing stock was Aquarius Platinum (ASX:AQP), shedding 5.03 per cent to close at $4.15. Shares in Energy Resources of Australia (ASX:ERA) and Bluescope (ASX:BSL) also closed weaker today.
Commodities
Gold is trading at $US1,625 an ounce and Light crude is 25 cents weaker at $US94.64 a barrel.
