Dragged down by weak leads the Australian share market opened lower and widened losses throughout the day, closing 1.4 per cent down at the session low after the RBA kept rates on hold.
The S&P/ASX 200 index dropped 58 points to finish at 4,205. On the futures market the SPI is currently 59 points down.
Economic news
As expected the Reserve Bank of Australia today decided to keep rates on hold at 4.25 per cent for the second straight month.
Australia’s account deficit grew in the last three months of 2011. The Australian Bureau of Statistics says the nation’s account deficit was $8.374 billion in the December quarter, coming in higher than expected.
Company news
Westpac Banking Corporation
(ASX:WBC) has confirmed it will be cutting 119 technology jobs. The latest cuts take Westpac’s total job losses to nearly 1,000 since the end of last year. Shares in Westpac closed 0.96 per cent lower at $20.56.
QBE Insurance Group Limited
(ASX:QBE) has announced that it’s close to finalising several “bolt-on” acquisitions. The insurer expects the acquisitions will generate $US500 million in annual written premiums. Shares in QBE closed 0.25 per cent lower at $11.82.
ANZ Banking Group
(ASX:ANZ) has become the first Australian bank to receive a Retail Renminbi license, allowing it to offer Renminbi related products and services to Chinese citizens.
Gloucester Coal Limited’s
(ASX:GCL) board has today backed a merger proposal with China’s Yancoal Australia that is expected to create Australia’s largest listed pure-play coal producer.
Online movie rental company Quickflix Limited
(ASX:QFX) has struck a deal with Metro-Goldwyn-Mayer Studios, or MGM, to license feature films for its digital streaming service.
Echo Entertainment Group Limited
(ASX:EGP) has confirmed that rival casino operator Crown Limited
(ASX:CWN) secured a 9.2 per cent relevant interest in Echo on March 2, 2012.
Best and worst performers
The major sectors all closed in the red: The sector with the smallest losses was Consumer Discretionary losing 8 points to close at 1272. The worst performing sector was Materials, losing 260 points to close at 10,936 points.
The best performing stock in the S&PASX 200 was UGL Limited
(ASX:UGL), rising 2.88 per cent to close at $12.52. Shares in Telecom Corporation of New Zealand
(ASX:TEL) and CFS Retail Property Trust
(ASX:CFX) also closed higher.
The worst performing stock was Karoon Gas Australia Limited
(ASX:KAR), dropping 6.17 per cent to close at $5.78. Shares in Gindalbie Metals Limited
(ASX:GBG) and Caltex Australia Limited
(ASX:CTX) also lost value.
Commodities
Gold is trading at $US1,702 an ounce.
Light crude is $0.12 lower at $US106.60 a barrel.
