The Australian share market opened higher and rose steadily through the day before taking a further upturn as investors reacted favorably to the Reserve Banks interest rate cut.
The S&P/ASX 200 index closed 44 points up to finish at 4,433. On the futures market, the SPI is currently 42 points higher.
Economic newsThe Reserve Bank of Australia today cut the nation’s official interest rate for the first time in four months, lowering the rate by 25 basis points to 3.25 per cent. Australia’s official interest rate now sits at the lowest level since October 2009.
Also today, the RP Rismark home values index saw its largest monthly increase since March 2010. Capital city house prices jumped by 1.4 per cent in September, suggesting that lulls in the housing market have subsided.
Company newsBank of Queensland Limited
(ASX:BOQ) was the first bank to respond to the RBA’s interest rate decision, however has cited funding pressures in only passing on 20 of a 25 basis point cut to the cash rate. CEO Stuart Grimshaw says that the bank is conscious of pressure facing all of its customers, and the 20 basis point reduction is the best balance between customers and shareholders. The big four banks are yet to announce any action in response to the RBA decision.
Shares in BOQ closed 0.79 per cent higher at $7.65.
Qantas Airways Limited
(ASX:QAN) will pay $34 million in outstanding GST to the tax office. Australia’s largest carrier says it was disappointed by the high court’s refusal to allow it to claim back the GST from passengers who booked tickets and didn’t arrive for their flights. Qantas also announced the sale of its 50 per cent stake in road freight business Star Track Express to Australia Post for $408 million. Shares in Qantas closed 2.52 per cent up this afternoon at $1.22.
The High Court has ruled Fortescue Metals Group Limited
(ASX:FMG) did not mislead investors about company developments in 2004 in upholding founder Andrew Forrest’s appeal against the Australian Securities and Investments Commission.
Shares in Central Petroleum Limited
(ASX:CTP) jumped 22 per cent after the explorer announced a joint venture agreement with Adelaide based Santos Limited
(ASX:STO).
Takeover target Sundance Resources Limited
(ASX:SDL) has revealed the Financier Commitment Letter from the China Development Bank has been pushed back, delaying its takeover by China’s Hanlong Mining.
Senex Energy Limited
(ASX:SXY) shares firmed after the oil and gas explorer announced the extension of its Snatcher oil field in South Australia’s Cooper Basin.
Best and worst performersAll indices finished up today: The best performing sector wasReal Estate Investment Trusts, adding 13 points to close at 942. The sector with the least gains was Financials, adding 40 points to close at 5,235 points.
The best performing stock in the S&PASX 200 wasAPN News and Media Limited
(ASX:APN), rising 24.64 per cent to close at $0.43.Shares in Saracen Mineral Holdings Limited
(ASX:SAR) and Senex Energy Limited
(ASX:SXY)also finished higher.
The worst performing stock was Energy World Corporation Limited
(ASX:EWC), dropping 3.95 per cent to close at $0.36. Shares in Macquarie Atlas Roads Limited
(ASX:MQA) and Decmil Group Limited
(ASX:DCG) were also lower at market close.
CommoditiesGold is trading at $US1,779 an ounce. Light crude is $0.11 down at $US92.37 a barrel. The Australian dollar is buying $US1.03.
