The Australian share market has ended the day 0.5 per cent lower following the Reserve Bank of Australia's decision to keep interest rates on hold but managed to trim heavier losses from earlier in the day.
Today, the S&P/ASX 200 index closed 25 points down to finish at 4,883.
The value of trades was $4.2 billion on volume of 708 million shares at the close of trade. The top three stocks by value were BHP Billiton Limited
(ASX:BHP), National Australia Bank Limited
(ASX:NAB) and Commonwealth Bank of Australia
(ASX:CBA).
On the futures market the SPI is 25 points lower.
Economic news
The Reserve Bank of Australia has kept the nation’s interest rates steady at 3 per cent at its February board meeting. The central bank says stabilising growth in China and firming commodity prices, combined with previous rate cuts, will support the economy in coming months.
Australian capital city house prices rose 1.6 per cent in the December quarter according to the Australian Bureau of Statistics (ABS). In the year to December, the house price index rose 2.1 per cent. Economists had expected house prices to be flat. The reading is an improvement from the 0.14 per cent drop the previous quarter.
Australia’s trade deficit narrowed in December fuelled by a jump in exports. The balance on goods and services was a deficit of $427 million for the month, compared with deficit of $2.788 billion in November. Exports rose 3 per cent, while imports fell 6 per cent. Economists’ had tipped a deficit of $750 million.
Company news
Transurban Group’s
(ASX:TCL) first half net profit has fallen by 16 per cent to $81.1 million dollars, down from $96.6 million in the corresponding period last year. The toll road operator offered no reason for the fall in earnings, focusing rather on highlighting the development of key projects. Shares in Transurban closed 0.98 per cent up at $6.16.
Cochlear Limited’s
(ASX:COH) first half net profit has surged 481 per cent to $77.7 million, rebounding from a $20.4 million loss in the same period last year. The hearing device company’s results were boosted by a record number of implant sales in the period, totalling over 13 thousand units. Shares in Cochlear closed 9.32 per cent down at $72.96.
Shares in Macquarie Group Limited
(ASX:MQG) have slipped after it provided a soft forecast in profit growth. However, the bank has retained a strong capital position, holding $3.3 billion over minimum requirements.
International education provider Navitas Limited
(ASX:NVT) has decreased its interim net profit by 1 per cent to $35.1 million, impacted by the long term effects of regulatory and policy change in Australia.
Transfield Services Limited
(ASX:TSE) has signed a $175 million contract with Department of Immigration and Citizenship for the provision of operational services at the regional processing centre in Nauru.
Aurizon Holdings Limited
(ASX:AZJ) expects to reopen one of its coal rail routes in Queensland by week’s end following the recent flood crisis.
Best and worst performers Consumer staples was the only sector higher today, adding 70 points to close at 9,361.The worst performing sector was materials, losing 123 points to close at 10,733 points. The best performing stock in the S&PASX 200 was Goodman Fielder Limited
(ASX:GFF) rising 4.48 per cent to close at $0.70. Shares in Bathurst Resources and Atlas Iron also closed higher.
The worst performing stock was Cochlear Limited
(ASX:COH) dropping 9.32 per cent to close at $72.96. Shares in Coalspur Mines and Buru Energy also closed lower.
Commodities
Gold is trading at $US1,675 an ounce. Light crude is $0.12 down at $US96.05 a barrel.
The Australian dollar
The Australian dollar is buying $US1.04.
