After Wall Street was closed for a public holiday and European stock rose the Australian share market opened slightly higher but has now dipped 0.4 per cent ahead of the Reserve Bank of Australia’s (RBA) monthly interest rate decision this afternoon, with the RBA being tipped to keep the key cash rate steady at 3.5 per cent.
The S&P/ASX 200 index has lost 20 points and is sitting at 4,310. On the futures market the SPI is 24 points lower.
Economic news
Australia’s current account deficit narrowed less than expected between April and June this year. According to the Australian Bureau of Statistics the current account deficit narrowed to $11.801 billion in the June quarter, from a downwardly revised deficit of $12.997 billion in the March quarter and against expectations for a deficit of $12.2 billion in the June quarter.
Company news DuluxGroup Limited
(ASX:DLX) has again extended the offer period for its planned hostile takeover of Alesco Corporation Limited
(ASX:ALS) to the October 2, 2012. DuluxGroup’s $210 million bid has an implied value of $2.05 cents per Alesco share, which Alesco has again today claimed is materially inadequate and undervalues the company. DuluxGroup interest in Alesco increased to 44.3 per cent at the end of last week. Shares in Alesco Corporation have risen 1.57 per cent and are trading at $1.94.
Engineering company UGL Limited
(ASX:UGL) will spend $37 million to rebrand its UGL Services business and recently acquired DTZ business as a new single brand called DTZ. Managing Director and CEO Richard Leupen says the company’s property services business will now be recognised as DTZ to reflect the creation of a fully integrated, global company with a unique platform. Shares in UGL have eased 0.95 per cent and are trading at $10.42.
Best and worst performers The best performing sector is Materials gaining 55 points to 9,303. Shares in Bathurst Resources Limited
(ASX:BTU) have risen 6.52 per cent and trading at $0.37. Shares in St. Barbara Limited
(ASX:SBM) and BlueScope Steel Limited
(ASX:BSL) are also stronger.
The worst performing sector is Industrials, falling 24 points to 3,292. Shares in Boart Longyear Limited
(ASX:BLY) have fallen 9.65 per cent, trading at $1.29. Shares in QR National
(ASX:QRN) and Qantas Airways Limited
(ASX:QAN) are also lower.
Gold and the dollar
Gold is trading at $US1,697 an ounce
The Australian dollar is buying $US1.024
