The Australian share market has climbed steadily in afternoon trade to close 0.6 per cent higher after RBA minutes that flagged further potential rate cuts. The ASX spent the day in positive territory following offshore gains on hopes the US is approaching a resolution in budget negotiations.
FiguresThe S&P/ASX 200 index closed 24 points up to finish at 4,386. The value of trades today was $3.6 billion on volume of 700 million shares at the close of trade. The top three stocks by value were National Australia Bank Limited
(ASX:NAB), BHP Billiton Limited
(ASX:BHP) and Commonwealth Bank of Australia
(ASX:CBA).
On the futures market,the SPI is currently 20 points higher.
Economic newsThe Reserve Bank of Australia (RBA) has flagged the possibility that further rate cuts may be needed in coming months. In the minutes from its November meeting released today, the central bank confirmed the current cash rate level of 3.25 per cent was suitable, noting that the reduced rate has pushed borrowing interest rates a little lower than average levels. The RBA has left the door ajar for more rate cuts, potentially as soon as next month.
Commonwealth Bank of Australia’s
(ASX:CBA) business sales indicator (BSI) has shown consumer spending fell last month, dropping 1.2 per cent in October after climbing 3.9 per cent the month before.
Company newsVirgin Australia Holdings Limited
(ASX:VAH) anticipates improving its underlying pre-tax profit in the current financial year, after strengthening areas including safety, IT, procurement and treasury. CEO John Borghetti says Australia’s second largest carrier had achieved its goal of diversifying revenue and driving yield growth 12 months ahead of schedule. Despite the operational positives, Virgin has cautioned shareholders that global economic uncertainty continues to impact customer sentiment. Shares in Virgin closed 3.03 per cent down at $0.48.
David Jones Limited
(ASX:DJS) will run an instore and online sales event to rival the 24 hour internet megasale known as ‘Click Frenzy.’
The David Jones event has been dubbed ‘Christmas Frenzy,’ with the department store confident the promotion would entice a spike in interest and online traffic volume. Shares in David Jones closed 0.78 per cent upat $2.57.
Gold and Copper explorer Newcrest Mining Limited
(ASX:NCM) has received another legal challenge from rival exploration company Gold and Copper Resources Pty Ltd, challenging two mining leases held by Newcrest for its Cadia Valley operations in NSW.
Ruralco Holdings Limited's
(ASX:RHL) full year net profit has fallen by 7.5 per cent to $13.8 million, with the rural services company impacted by weaker sheep and wool prices.
Shares in coal explorer Blackwood Corporation Limited
(ASX:BWD) plunged 22.22 per cent after Nathan Tinkler’s Mulsanne Resources was placed into liquidation this morning. Mr Tinkler had agreed to invest $28.4 million for a 34 per cent stake in the coal developer earlier this year.
Property developer Lend Lease Group
(ASX:LLC) has been awarded a $208 million design and construction contract to redevelop a shopping centre in Perth.
Best and worst performersThe best performing sector wasMaterials adding 123 points to close at 9,882.
The worst performing sector was Utilities, losing 6 points to close at 4,909.
The best performing stock in the S&PASX 200 wasPaladin Energy Limited
(ASX:PDN), rising 9.04 per cent to close at $0.91. Shares in Iluka Resources Limited
(ASX:ILU) and Seven Group Holdings Limited
(ASX:SVW) also finished the day higher.
The worst performing stock was Cardno Limited
(ASX:CDD), dropping 19.23 per cent to close at $6.30. Shares in Energy World Corporation Limited
(ASX:EWC) and Boart Longyear Limited
(ASX:BLY) were also lower at market close.
CommoditiesGold is trading at $US1,733 an ounce.
Light crude is $0.19 down at $US89.09 a barrel.
The Australian dollarThe Australian dollar is buying $US1.04.
