The Australian share market has finished 0.6 per cent down after spending most of the day in negative territory and extending losses on the back of the RBA’s decision to cut interest rates.
The S&P/ASX 200 index closed 28 points down to finish at 4,504. The value of trades was $3.1 billion on volume of 636 million shares at the close of trade. The top three stocks by value were Graincorp Limited (ASX:GNC), Commonwealth Bank of Australia (ASX:CBA) and ANZ Banking Group (ASX:ANZ). On the futures market, the SPI is currently 44 points down.
Economic news
The Reserve Bank of Australia (RBA) has met the expectations of analysts and reduced the cash rate by a further 25 basis points to 3.0 per cent.
The central bank concluded a further easing in monetary policy was appropriate to help foster sustainable growth in demand and inflation outcomes consistent with targets over time.
The Australian Bureau of Statistics reported a 7.6 per cent fall in Building approvals in October, with 12,540 new approvals during the month.
Australia’s account deficit widened more than expectations in the September quarter, reaching $14.9 billion in the three month period.
Company news
Whitehaven Coal Limited’s (ASX:WHC) New South Wales coal operations have been interrupted by a train derailment between its Narrabri mine and the Port of Newcastle. Whitehaven has been advised the rail passage is unlikely to be restored for up to 15 days, precluding coal transport from the underground mine to the port. CEO Tony Haggarty says the coal miner is reviewing options to minimise the impact of the closure on its operations. Shares in Whitehaven Coal closed 0.66 per cent down at $3.01.
APA Group (ASX:APA) has reportedly flagged an interest in lodging an application to construct a $900 million to the Rio Tinto Limited (ASX:RIO) owned Gove alumina site in the Northern Territory. The potential pipeline would allow the site to be supplied gas from Santos Limited (ASX:STO) and Italian owned ENI Australia. It is understood an APA Group spokesperson confirmed the company would certainly lodge an expression of interest to any tendering process, after previously planning a pipeline to the site in 2005 before the project collapsed due to a gas price dispute between suppliers and previous site owners. Shares in APA Group closed 1.61 per cent down at $5.51.
Telstra Corporation Limited (ASX:TLS) reportedly plans to launch its own low cost internet service provider if its $60 million bid to purchase Adelaide based company Adam internet is rejected by Australia’s competition regulator.
Graincorp Limited (ASX:GNC) was the most traded stock in the ASX by value today as we saw earlier, with the grain storage company reviewing an increased take-over offer from US suitor Archer Daniels Midland, valued at $2.8 billion or $12.20 per share.
Internet service provider iiNet Limited (ASX:IIN) will receive approximately $8 million in back dated refunds following the resolution of an access dispute with Telstra Corporation Limited (Public, ASX:TLS).
Property developer Stockland (ASX:SGP) has warned investors its underlying earnings for fiscal 2013 will be at the lower end of guidance range due to ongoing difficulties in the Victorian residential market.
Best and worst performers
The best performing sector was Healthcare adding 20 points to close at 11,475, the only sector to finish the day up.
The worst performing sector was Utilities, losing 68 points to close at 5,015.
The best performing stock in the S&PASX 200 was Linc Energy Limited (ASX:LNC), rising 6.9 per cent to close at $0.78. Shares in Shopping Centres Australasia (ASX:SCP) and Graincorp Limited (ASX:GNC) also finished the day trading higher.
The worst performing stock was Mesoblast Limited (ASX:MSB), dropping 5.24 per cent to close at $5.61. Shares in Integra Mining Limited (ASX:IGR) and Coalspur Mines Limited (ASX:CPL) also closed lower.
Commodities
Gold is trading at $US1,711 an ounce.
Light crude is $0.42 down at $US88.67 a barrel.
The Australian dollar
The Australian dollar is buying $US1.044.
