The share market dropped almost half a per cent today after concerns over Italy and Spain saw some offshore losses impact our sentiment. But uranium miners soared, on prime minister Julia Gillard’s talks of exports to India.
Today, the S&P/ASX 200 Index today retreated 19 points to finish at 4,286. On the futures market, the SPI is 30 points lower.
Economic news
The Reserve Bank of Australia’s given no indication it’s going to cut interest rates in the coming months after it released its monthly meeting minutes today.
And The Australian Bureau of Statistics says sales of new motor vehicles rose 1.1 per cent in October, and 4.4 per cent for the year to October.
Company news
Prime Minister Julia Gillard’s in the good books with Paladin Energy Limited (ASX:PDN) today after she said she’s going to lobby her colleagues to change their internal policy on uranium, which currently bans the export of the commodity to India. Managing director John Borshoff says it’s a much-needed move and it’s a good move regionally and geo-politically because countries like the USA, Russia, and Canada are already selling to the subcontinent. Shares in Paladin Energy Limited (ASX:PDN) closed 3.11 per cent higher today at $1.66.
BHP Billiton Limited (ASX:BHP) could also benefit given its plans to develop the world’s biggest uranium mine at Olympic Dam in South Australia. Meanwhile the miner says it’s going to spend about $US4.5 billion on onshore shale gas projects in the US this financial year, and is set to spend abother $US6 billion on shale gas in 2014/2015. Shares in BHP Billiton Limited (ASX:BHP) closed 1.65 per cent down today at $36.88.
Santos Limited (ASX:STO) has had its coal seam gas blockade lifted in northern NSW, leaving some farmers and environmental groups relieved their land’s not going to used for mining for the moment. Santos will be allowed to complete grading and fencing work however, until the Namoi Water Study is completed next year when it will reveal if mining will pose any risk to water supplies in the Namoi catchment and Liverpool Plains.
Origin Energy Limited (ASX:ORG) says it’s to raise $500 million through a note issue, so it can help fund its contribution to the Australia Pacific liquefied natural gas project. The notes will be offered from November 23.
Away from resources, Ramsay Health Care Limited (ASX:RHC) says it’s on track to lift full year earnings by as much as 12 per cent. The private hospitals owner’s managing director told the company’s AGM today it performed in line with expectations during the first four months of the 2011/2012 financial year.
And the Commonwealth Bank of Australia’s (ASX:CBA) cash earnings came in at $1.75 billion for the first three months of the financial year, so it’s on track to improve on last year. Despite the bumper result though it said its margins were under pressure, and it’s offered a subdued outlook for credit demand.
Best and worst performers
The best performing sector, was Telco Services, adding 6 points to close at 1,084. The worst performing sector was real estate investment trusts, shedding 10 points to close at 799.
The best performing stock in the S&P/ASX200 was Resolute, shares rising 5.37 per cent to close at $2.06. Shares in Gloucester and Murchison Metals also finished stronger today.
The worst performing stock was AlacerGold, dropping 6.53 per cent to close at $11.31. Shares in Mesoblast and Intrepid also fell today.
Commodities
The price of gold is $US1,768 an ounce and Light crude is down 37 cents at $US97.77 a barrel.
