Following positive leads, the Australian share market jumped at open but pulled back on the release of RBA board meeting minutes. Local stocks finished higher despite losing X per cent, with the miners dragging after the RBA cautioned a weaker than expected mining outlook.
The S&P/ASX 200 index closed 8 points up to finish at 4,492. On the futures market, the SPI is currently 9 points up.
Economic news
The Reserve Bank of Australia has cautioned the outlook for mining investment in Australia may not be as strong as expected;
"It seems likely that mining investment would peak a little earlier and at a somewhat lower level than had previously been forecast,"
The RBA has affirmed its forecast for gross domestic product continues to include a significant contribution from mining investment in the coming quarters.
Company news
Rio Tinto Limited (ASX:RIO) has announced a five percent third quarter rise in the Pilbara region’s iron ore production. For the three months until the end of September, Rio produced a record 62.9 million tonnes of iron ore in the region, while global iron ore production lifted by five percent to 67 million tonnes for the quarter. Shares in Rio Tinto closed 1.25 per cent down at $55.12.
Fortescue Metals Group Limited (ASX:FMG) is maintaining its full year production target after it also achieved a rise in production for the September quarter.
The iron ore miner posted total production of 18.3 million tonnes in the first quarter, a 16 per cent production increase from the previous corresponding period.
Fortescue says in its quarterly report that it expects the iron ore price to stabilise at around $US120 a tonne in the short term. Shares in Fortescue closed 3.49 per cent up at $3.85.
Shares in Lend Lease Group (ASX:LLC) have firmed 4.15 per cent after it announced the results of an investigation into subsidiary Abigroup, revealing two misreported projects had no net material impact on the group’s results from fiscal 2012.
Shares in NRW Holdings Limited (ASX:NWH) rose 4.09 per cent after the mining service provider was awarded a $90 million earthworks contract for Rio Tinto Limited’s (ASX:RIO) Yandi sustaining project in Western Australia.
CogState Limited (ASX:CGS) shares gained 9.59 per cent after researchers announced that they believe they've have found a way to detect the earliest signs of Alzheimers disease in otherwise healthy people.
Wesfarmers Limited (ASX:WES) reportedly launched a property portfolio review for its supermarket division, Coles Group worth about $700 million.
Best and worst performers
The best performing sector was Consumer Discretionary adding 7 points to close at 1,279. The worst performing sector was Materials, losing 49 points to close at 9,978 points.
The best performing stock in the S&PASX 200 was Lend Lease Group (ASX:LLC), rising 4.15 per cent to close at $8.53. Shares in NRW Holdings Limited (ASX:NWH) and Fortescue Metals Group Limited (ASX:FMG) also finished higher.
The worst performing stock was Medusa Mining Limited (ASX:MML), dropping 6.94 per cent to close at $6.03. Shares in Saracen Mineral Holdings Limited (ASX:SAR) and Goodman Fielder Limited (ASX:GFF) were also lower at market close.
Commodities
Gold is trading at $US1,738 an ounce. Light crude is $0.07 up at $US91.92 a barrel. The Australian dollar is buying $US1.026.
