The Australian share market opened higher, rose steadily and jumped following the announcement of the RBA’s interest rate cut, before closing 0.8 per cent up.
Today, the S&P/ASX 200 index was 33 points up to finish at 4,430. On the futures market, the SPI is currently 22 points up.
Economic news
The central bank cut its official cash rate from 4.25 per cent to 3.75 per cent. The reduction of 50 basis points, is the largest since February 2009. Governor Glenn Stevens says a reduction of 50 basis points in the cash rate was necessary in order to deliver the appropriate level of borrowing rates.
Company news
Woodside Petroleum Limited (ASX:WPL) shares were boosted today following the company’s announcement that it had accepted a $2 billion offer from Japan Australia LNG Pty Ltd. The sale reduces Woodside’s stake in the proposed Browse LNG Development from 46 per cent to 31.3 per cent. Shares in Woodside closed 3.67 per cent up at $36.20.
Qantas Airways Limited (ASX:QAN) shares remained steady today, following the release of increased passenger numbers from the same time last year. This was in spite of media reports today that the airline will be shedding 400 jobs at their heavy maintenance base. Shares in Qantas closed 1.22 per cent up at $1.66.
DuluxGroup Limited (ASX:DLX) has revealed an intended takeover offer for Alesco Corporation Limited (ASX:ALS) offering Alesco shareholders $2.00 per share.
Children’s product company Funtastic Limited (ASX:FUN) stated today the company will return to profitability this fiscal year and expects to post a net profit of $10.4 million.
Shares in Lynas Corporation Limited (ASX:LYC) retreated slightly today following the announcement that it will undertake defamation proceedings against the “Save Malaysia Stop Lynas” group and other media outlets in Malaysia.
Wotif.com Holdings Limited (ASX:WTF) shares dropped 5.7 per cent today after the online travel company issued disappointing profit guidance for the full year.
Best and worst performers
The best performing sector was Energy adding 196 points to close at 14,310. The sector with the smallest gains was Industrials, gaining 14 points to close at 3,767 points.
The best performing stock in the S&PASX 200 was GWA International Limited (ASX:GWA) rising 5.85 per cent to close at $2.08. Shares in AWE and Cudeco also closed higher.
The worst performing stock was Ramelius Resources Limited (ASX:RMS) dropping 24.68 per cent to close at $0.58 (cent). Shares in Wotif.Com Holdings and Aquarius Platinum also closed lower.
IPOs
Merah Resources Limited (ASX:MEH) started trading today. The metal explorer had an issue price of $0.20, listed at $0.22 closed at $0.21.
Commodities
Gold is trading at $US1,665 an ounce.
Light crude is $0.06 down at $US104.87 a barrel.
The Australian dollar is buying $US1.0331.
